FILED ALAMEDA country NANCY E. District Attorney of Alameda County Matthew L. Beltramo, Deputy District Attorney (State Bar No. 184796) 7677 Oakport Street, Suite 650 Oakland, CA 94621 Telephone: (510) 383-8600 Facsimile: (510) 383-8615 Attorneys for Plaintiff (For list of additional Plainti??b counsel, see Attachment 1) SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF ALAMEDA PEOPLE OF THE STATE OF CALIFORNIA, case No1'9 COMPLAINT FOR EQUITABLE RELIEF, Plaintiff, INCLUDING AN INJUNCTION, RESTITUTION AND CIVIL PENALTIES VS. MY PILLOW, INC., a Minnesota Corporation; and MY PILLOW DIRECT, LLC, a Minnesota Limited Liability Company. Defendants. Plaintiff, the People of the State of California, appearing through its attorneys: Nancy E. O?Malley, District Attorney of Alameda County, by Matthew L. Beltramo, Deputy District Attorney; Edward S. Berberian, District Attorney of Marin County, by Andres H. Perez, Deputy District Attorney; Dean Flippo, District Attorney Of Monterey County, by John Hubanks, Deputy District Page 1 Complaint For Equitable Relief Attorney; Gary Lieberstein, District Attorney of Napa County, by Patrick Collins, Deputy District Attorney; Tony Rackauckas, District Attorney of Orange County, by Tracy E. Hughes, Deputy District Attorney; Jeffrey F. Rosen, District Attorney of santa Clara County, by Francisca B. Allen, Deputy District Attorney; Jeffrey Rosell, District Attorney of Santa Cruz County, by Douglas Allen, Assistant District Attorney; Stephen S. Carlton, District Attorney of Shasta County, by Anand ?Lucky? esrani, Senior Deputy District Attorney; Krishna Abrams, District Attorney of Solano County, by Diane M. Newman, Deputy District Attorney; and Jill R. Ravitch, District Attorney of Sonoma County, by Matthew T. Cheever, Deputy District Attorney, alleges on information and belief the following: JURISDICTION AND VENUE 1. The authority of the District Attorneys to bring this action is derived from that statutory law of the State of California, speci?cally Business Professions Code sections 17200, 17203, 17204, 17206, 17508, 17535 and 17536. 2. Defendants advertise and market products, and otherwise conduct business, within the counties of Alameda, Napa, Solano, Sonoma, Marin, Monterey, Orange, Santa Clara, Santa Cruz, and Shasta, and elsewhere in the State of California. The violations of law herein alleged have been carried out within these counties and elsewherein the State of California. DEFENDANT 3. Defendant, My Pillow, Inc., is a Minnesota corporation with a. registered address of 343 East 82nd Street #102, Chaska, MN 55318. 4. Defendant My Pillow Direct, LLC, a Minnesota limited liability company with a registered address of 343 East 82nd Street #102, Chaska, MN 55318 5. Defendant My Pillow, Inc., and My Pillow Direct, LLC, will hereinafter collectively be referred to as ?Defendants? or ?My Pillow.? Page 2 Complaint For Equitable Relief GENERAL ALLEGATIONS Defendants are in the business of developing, manufacturing, packaging, labelling, promoting, advertising and selling bedding products, including pillow products, marketed under the brand - name ?MyPillow.? Defendants engaged in this business activity in the counties of Alameda, Marin, Monterey, Napa, Orange, Santa Clara, Santa Cruz, Shasta, Solano and Sonoma, and elsewhere in the State of California. In their marketing and advertising, including their use of consumer testimonials, Defendants made and/or disseminated representations about the effects, ef?cacy, or attributes of MyPillow products that were not supported by competent and reliable scienti?c evidence. By way of example only, such statements included the following: l?MyPillow can help your ?bromyalgia?; ?MyPillow? Can Help Insomnia?; ?MyPillow can help your migraines and headaches?; ?MyPillow Can Help Sleep Apnea?; ?MyPillow Can Help Your Snoring?; ?MyPillow can help your and ?MyPillow can help your Restless Leg In their marketing and advertising, Defendants also claimed that MyPillow was the ?Of?cial Bed Pillow? of the National Sleep Foundation (NSF), without disclosing that a material ?nancial connection existed between Defendants and NSF. 10. FIRST CAUSE OF ACTION VIOLATIONS OF BUSINESS PROFESSIONS CODE SECTION 17500 (False and Misleading Advertising) The People re-allege and incorporate by reference Paragraphs 1 through 8 of this Complaint as though fully set forth herein. I Beginning at an exact date which is unknown to plaintiff, but within three years prior to the ?ling of this complaint, Defendants, with the intent directly or indirectly to dispose of property or to perform services, or to induce members of the public to enter into obligations relating thereto, made or disseminated or caused to be made or disseminated before the public in this state statements concerning such property, services or obligations which were untrue or Page 3 Complaint For Equitable Relief misleading and which Defendant knew or reasonably should have known were untrue or misleading, as prohibited by Business Professions Code section 17500. Such statements included but are not limited to all of the claims set forth in Paragraphs 7 and 8, above. 11. Defendant is subject to civil penalties, pursuant to Business Professions Code section 17536, and to injunctive relief, pursuant to Business Professions Code section 17535. . SECOND CAUSE OF ACTION VIOLATIONS OF BUSINESS AND PROFESSIONS CODE SECTION 17200 (Unfair Competition) 12. Plaintiff realleges and incorporates by reference Paragraphs 1 through 11 of this Complaint as though fully set forth herein. 1 13. Beginning at an exact date which is unknown to the People, but within four years prior to the ?ling of this complaint, Defendants engaged in a course of conduct constituting acts of unfair competition, as de?ned by Business Professions Code section 17200, including but not limited to the following: a. Violating Business and Professions Code section 17500 as set forth in the First Cause of Action; b. Violating the provisions of the Health Safety Code set forth in Part 5, Chapter 4, Article 3, and Part 5, Chapter 6, Articles 3 and 5, pertaining to medical devices; c. Violating California Civil Code section 1770(a)(5) by representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, bene?ts or quantities which they do not have. 14. Defendants are subject to civil penalties, pursuant to Business Professions'Code section 17206, and to injunctive relief, pursuant to Business Professions Code sections 17203 and 17204, WHEREFORE, the People pray for relief as follows: 15. For a preliminary and permanent injunction, pursuant to Business Professions Code sections Page 4 Complaint For Equitable Relief 16. 17. 18. 19. 17203, 17204, and 17535, restraining and enjoining Defendants, from making, disseminating, or causing to be made or disseminated any false or misleading statements as set forth in the First Cause of Action, above, or from engaging in or performing, directly or indirectly, any acts of unfair competition as set forth in the Second Cause of Action, above. That Defendants be ordered to pay a civil penalty of up to $2,500.00 for each act of false advertising and/or unfair competition, pursuant to Business and Professions Code sections 17206 and 17536. That Defendants be ordered to pay restitution as required under law. That the People recover its costs of suit herein. That the People be given such other and further relief as the nature of this case may require and this Court deems proper to ?illy and successfully dissipate the effects of the unlawful and unfair acts complained of in this complaint. Date: October 25, 2016 Nancy E. O?Malley Alameda County District Attorney By' 7% 'Matthew L. Beltramo Deputy District Attorney . Page 5 . Complaint For Equitable Relief ATTACHMENT 1 The following additional attorneys represent Plaintiff, the People of the State of California, in this action: GARY LIEBERSTEIN District Attorney, County of Napa Patrick Collins, SBN 253872 Deputy District Attorney . 931 Parkway Mall Napa, CA 94559 (707) 253-4211 DEAN LIPPO District Attorney, County of Monterey John Hubanks, SBN 163765 Deputy District Attorney 1200 Aguajito Road, Room 301 Monterey CA 93 940 (831) 647-7770 JILL R. RAVITCH District Attorney, County of Sonoma Matthew T. Cheever, SBN 191783 Deputy District Attorney 2300 County Center Dr., Ste.? B170 Santa Rosa, CA 95403 (707) 565-3161 JEFFREY F. ROSEN District Attorney, County of Santa Clara Francisca Allen, SBN 99402 Deputy District Attorney . 70 W. Hedding St., West Wing San Jose CA 95110 (408) 792~2480 STEPHEN S. CARLTON District Attorney, County of Shasta Anand ?Lucky? Jesrani, SBN 238252 Senior Deputy District Attorney 1355 West Street Redding CA 96001 (530) 245-6300 EDWARD S. BERBERIAN District Attorney, County of Marin Andres Perez, SBN 186219 Deputy District Attorney 3501 Civic Center Drive, Room 130 San Rafael CA 94903 (415) 473?6450 TONY RACKAUCKAS District Attorney, County of Orange Tracy E. Hughes, SBN 180494 Deputy District Attorney 401 Civic Center Drive Santa Ana CA 92701 (714) 834-6504 KRISHNA ADAMS District Attorney, County of Solano Diane M. Newman, SBN 179926 Deputy District Attorney 675 Texas Street, Suite Fair?eld CA 94533 (707) 748?6800 JEFFREY ROSELL District Attorney, County of Santa Cruz Douglas Allen, SBN 99239 Assistant District Attorney 701 Ocean St., Suite 200 Santa Cruz CA 95060 (831) 454-2930