(Page 1 of 78) FILED STEPHEN BERNARD, ESQ., SBN 56553 Su nor Court of Californla SHANE BERNARD, ESQ., SBN 298662 L03 ?99193 n, BERNARD Nov 0 3 2m? -, 10990 Wilshire Boulevard, Suite 1175 Los Angeles, CA 90024-4305 3'19"! H. - Telephone: 310-312-0220 3? Facsunile: 310-312?0016 - 0 Attorneys for Plaintiffs, PALMIERI aka ETHAN KATH an'd; CASTLES ?tarmac .. UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CLAUDIO PALMIERI aka ETHAN CASE NOKATH, an individual, and; . CASTLES, an Ontario VERIFIED COMPLAINT FOR General Partnership, DAMAGES: hi hi hi 1. DEFAMATION PER 2 FALSE 3. . BREACH OF MARGARET OSBORN aka ALICE 4. TORTIOUS INTERFERENCE GLASS, an individual, JUPITER WITH CONTRACTUAL KEYES, an individual, and DOES 1 through 50, Inclusive, PlaintiffsTORTIOUS INTERFERENCE WITH PROSPECTIVE Defendants. ECONOMIC . 6. CONSPIRACY. DEMAND FOR JURY TRIAL [\JI?nh?t C: MD 00 b3 COMES NOW, Plaintiff CLAUDIO PALMIERI aka ETEAN KATH, an individual, and CASTLES, an Ontario General Partnership, fof a cause of b0 DJ 50 action against Defendants, and each of them, hereby alleges as follows: N5 42:. (Preliminary Statement) In or about 2012, Plaintiff CLAUDIO PALMIERI aka ETHAN KATH ended 1 14!? relationship with former girlfn?end and bandmate MARGARET OSBORN aka {JelVERIFIED COMPLAINT FOR DAMAGES i - ALICE GLASS. OSBORN. After trying to end CASTLES, I Doc# 1 Page# 1 Doc ID 1715895168 - Doc Type OTHER aanmo ad?m - ?srssegILr a: nod 3 #859a I #ooa elmo?lsa 10 name 1:351- ua .3 eelspnA anJ In 11-4 Pi H. u-vI 80 If" 11.57: mug CITIERSE: 3863183? RECEIPT DQTE PRID: PAYMENT: $435.09? RECEIVED: CHECK: CASH: CHANGE: CQRD: 11:50 RM 318 $435 .00 $0 . Etc259a) (Page 3 of 78) 1 OSBORN formed the unfounded and untruth?il assertion that PALMIERI was 2 stealing from her share of CASTLE pro?ts. After demanding and 3' completing FIVE AUDITS, no hint of wrongdoing by PALMIERI was ever found. 4 DeSpite the auditors ?ndings, OSBORN, continued to untruthfully assert ?that PALMIERI had stolen from her, so she hatched a plan to ruin his good name and i 6 reputation in the industry, destroy CASTLES (a well known and success?ll 7 musical act), and in turn boost her own career. In order to effectuate this dastardly plan, 8 OSBORN and her boyfriend, IUPITER KEYES, conSpired and didreach out to persons . 9 in order to spread false and malicious lies that PALMIERI was physically and sexually 10 abusive, and that the Plaintiff had taken advantage of OSBORN by drugging her. 11 A then fan of CASTLES was asked by the Defendants to ?post on 12 social media these horri?c and humiliating untruths against PALMTERI. However, said I . 13 fan learned of the Defendants false and malicious scheme and informed PALMIERI. 14 What followed was a 2014 cease and desist letter dated December 2014 by an attorney 15 acting on behalf of Shortly after receiving the cease and desist, the fan 16 received a phone call from KEYES yelling and screaming that the she (the fan) had 17 mined their ill begotten plan. Thereafter OSBORN stopped disseminating these 18 disparaging and malicious lies until the events leading to- this instant action. 19 However, in October 24, 2017, (now FIVE years after PALMIEERI AND 20 OSBORN ended their personal relationship) OSBORN released false and malicious 21 lies to the online world. As a result, CASTLES has suffered irreparable 22 damage, very least of which was the cancellation of Plaintist North America tour. 23 (Parties and Agency) .24 1. . At, all times relevant herein, Plaintiff CLAUDIO PALMIERI aka ETHAN ?25 KATH (hereinafter to be referred to as ?Plaintiff? or an individual 26 re?jjding in Los Angeles. Plaintiff has always maintained a positive reputationboth in his 27- pe??0nal and professional life, and is well respected in the musical community. 28 2. CASTLES, a Canadian Company (hereinafter to be referred to 2. . VERIFIED COMPLAINT FOR DAMAGES I Doc# 1 Page# 3 - Doc ID 1715895163 - Doc.Type OTHER (Page Ontario General Partnership, founded and 2 operated by PALMIERI. 3 3. Collectively, PALMIERI and CASTLES shall be referred to - 4 as ?PlaintiffsDefendant MARGARET OSBORN aka ALICE GLASS (hereinafter to be 6 referredto as ?Defendant?) is an individual residing in the County of Los Angeles, . 7 California. At all times mentioned herein, Defendant was an individual over the age of 8 consent. 9 5. On information and belief, Defendant JUPITER KEYES (hereinafter 10 referred to as is an individual residing in the County of Los Angeles, 1 1 California. 12 6. Whenever in this Complaint reference is made to ?Defendants,? such 13 allegations shall collectively be deemed to refer to Defendants OSBORN, KEYES and 14 DOES 1 through 50, inclusive, and shall mean the acts of Defendants acting individually, .15 jointly, and/0r severally. l6 The tine names and capacities, whether individual, corporate, associate, of 17 otherwise, of Defendants sued herein as DOES 1 through 50, inclusive, are currently? 18 I unknown to Plaintiff, who therefore sue said Defendants by their ?ctitious names. 19 Plaintiff is informed and believe. And based thereon allege, that each of the Defendants 20 designated therein as DOE islegally responsible in some .manner for the events and 21 happenings referred to herein and caused injury and damages proximately thereby to 22' Plaintiff as hereinafter alleged. Plaintiff will seek leave of court to amend this Complaint 23 to re?ect the true-names and capacities of the Defendants designated hereinafter as DOES 24 when the same have been ?nally ascertained. 25 8. Plaintiff is informed, believes and thereon alleges, that at all times 26 mentioned herein, each of the Defendants was the agent, servant, employee, co-venturer 27 co-conspirator of each of the remaining Defendants, and was at all times. herein 28 nightioned, acting within the course, scope, purpose, consent, knowledge, ratification, and 5?5! VERIFIED COMPLAINT FOR DAMAGES Doc# 1 Page# 4 - Doc ID 171589516? Doc Type OTHER - (Pages of 78) - i ?authorization. of such agency, employment, joint venture, and conSpiracy, and that each 2 and every Defendant, as aforesaid, when acting as a principal, was negligent in the I 3 selection and hiring of each and every other Defendant as an agent, employee and/ or joint I 4 ve'nturer. 5 (Venue) 6 9. Venue is properly located in Los Angeles County because Defendants? 7 wrongful acts occurred in Los Angeles County, and, on information and belief, all 8 I Defendants reside in Los Angeles?County. 9 I (Facts Common to All Counts) i 10 10. Plaintiff PALMIERI ?rst met Defendant MARGARET OSBORN aka 1 ALICE GLASS in or about 2003 when PALMIERI was performing with a former band, I 12 Kill Cheerleader. 13 11. In or about 2005, PALMIERI had started a project named 14 I CASTLES and asked Defendant OSBORN to sing vocals on some of the musical tracks. 15 Ultimately this collaboration led to OSBORN becoming a member of the group. 16 - 12. From 2006 (when CASTLES released their ?rst single) to 17 2013, the band enjoyed commercial success. However, in October 2014, OSBORN 18 decided to leave the band and start a solo career. 19 13. Thereafter, PALMIERI replaced OSBORN with a new singer named 20 MARGO HAMMAN aka EDITH FRANCES and the "band?s popularity continued, 2i headlining major concerts and festivals. 22 - 14. Sometime in or about 2014, OSBORN, under the unfounded belief that 23 PALMIERI had embezzled or misrepresented their earnings, requested multiple audits 24 pursuant to their Recording Agreement. (See Exhibit A for a true and correct copy of the 25 Recording Agreement). Despite multiple audits by OSBORN, no evidence was ever . 26 discovered to substantiate-her erratic and unfounded belief. To this date and in perpetuity, 27 ORN and PALMIERI are contractually bound by way of the Recording Agreement I 28 will both receive royalties in perpetuity for the ?rst three (3) 3.37 - 4 i VERIFIED COMPLAINT FOR DAMAGES I Doc# 1 Page# 5 - Doc ID 1715895168 - Doc Type OTHER (Page 6 of 78) 0 albums. 15. On information and belief, OSBORN began to date DEFENDANT KEYES in or around October of 2012. .After Defendants began their relationship, illicit drug abuse became substantial and her behavior erratic. 17. In about 2014, Arianne Deyurre was operating a popular CASTLES fan site, ?rnagicspel ls.tumblr.? Ms. Deyurre became acquainted with Defendant OSBORN after attending a show in which she was DJ ?ing. At some point during the evening, KEYES approached Ms. Deyurre and apologized that. OSBORN could not meet her, but that he did want Ms. Deyurre and OSBORN to take a photo 10 . together, which they did so later that night. 11 18. Therea?er, OSBORN contacted Ms. Deyurre somewhat regularly through 12 social media, telephonically and occasionally in person. Ms. Deyurre, a fan of l3 CASTLES, was elated to have a relationship with a musician that she looked up to. 14 19. They began to develop a relationship and from the beginning OSBORN and 1 5 KEYES made falseallegations that PALMIERI had sexually assaulted her by use of force 16 and illicit substances. In addition, Defendants also told Ms. Deyurre another lie, that 17" PALMIERI had stolen royalty money owed to her. 18 20. Defendants OSBORN and KEYES told Ms. Deyurre outright that they 19 intended ?to take down Palmieri? based on their unfounded belief PALMIERI was 20 rstealing 21 21. In order to accomplish their goals, Defendants. tried to persuade Ms. 22 Deyurre to post on her blog the allegations against that were fed to her by 23 both OSBORN and KEYES, namely the false accusations of sexual abuse by PALMIERI. .24 22?. Despite initially agreeing to post the requested libel, Ms. Deyurre 25 eventually determined that she was being manipulated and taken advantage of by 26 Dgfendants. 27 23. In or around December 2014, Ms. Deyurre contacted PALMIERI and had 28 ?gmed him of Defendants plans to disparage, discredit, and tarnish the good will and . 5 VERIFIED COMPLAINT FOR DAMAGES Doc# 1 Page# 6 Doc ID 1715895168 - Doc Type OTHER (Page 7 of 7a) 1 - reputation he had worked to build. 2 24. After learning of their plan, PALMIERI sought legal counsel and a cease. 3 and desist letter was issued on or about December 26, 2014. As noted in the cease and 4 desist letter, it was obvious that OSBORN was making these claims more than two 5 years after ending their relationship (at that time in 2014) for the purpose of 6 shamelessly attracting attention to further her own musical career. (See Exhibit for a 7 true and correct copy of cease and desist letter dated December 26, 2014). 8 25. Sometime after the New Year, Ms. Deyurre received a phone call from 9 KEYES stating to her that ?by informing Mr. Palmieri of their plan I-had betrayed them 10 and ruined their lives.? (See Exhibit for a true and correct copy of Declaration of 1-1 Arianne Deyurre). 12' 26. Thereafter, to knowledge, OSBORN did cease and desist 13 from making ?lrtlier false accusations'until October 24,2017 when OSBORN posted on 14 her website that she was the victim of sexual and physical 15 abuse by PALMIERI. 16 27. Speci?cally, OSBORN stated: 17 He gave me drugs and alcohol and had sex with me in 18 an abandoned room at an apartment he managed. It wasn?t always 19 consensual and he remained sober whenever we were together; and 20 He became physically abusive. He held me over a staircase and 21 threatened to throw me down it. He picked me up over his shoulders 22 and threw me onto concrete. (See Exhibit for a true and correct 23 copy of Statement of OSBORN posted on website 24 1 25 28: DeSpite their relationship ending over four (4) years ago at the time of this: 26 publication, and the fact that OSBORN had tried to falsely accuse PALMIERI in 2014, 27 pli?lication of these false allegations is all the more egregious. 28 29. Since the release of statement, CASTLES - 6 VERIFIED COMPLAINT FOR DAMAGES Docs! 1 Pagett 7 - Doc ID 1715895168 Doc Type OTHER (Page 8 of 78) 1 management company, C3 Management, contacted PALMIERI and informed him that the 2 CASTLES tour had been cancelled due to the nature statements 1 3 against PALMIERI. Since receiving this call from C3 Management, PALMIERI has tried 4 numerous times to reach out to the management company without success. 5 30. on, information and belief, the gross pro?t from this tour (excluding 6 merchandise) would be estimated at $300,000.00. 7 Aside from the lost revenue due to the tour being cancelled, both 8 PALMIERI and have Suffered irreparable harm to their reputation 9' and good will. 10 FIRST CAUSE OF ACTION 11 DEFAMATION AND DEFAMATION PER SE 12 (Against Defendant OSBORN and DOES 1-50) 13 32. Plaintiff re?alleges and incorporates by reference all paragraphs above as 14 though fully set forth in detail herein. 15 33. On or about October 24, 2017, OSBORN aka ALICE GLASS publicized to 16 the online community, statements that Plaintiff had sexually and physically abused her 17 and that on some occasions sexual acts were perpetrated by PALMIERI against OSBORN - 18 by use of illicit substances. 1 9 . 34. OSBORN, knowing said statements were false and despite having attempted . 20 to defame PALMIERI in the past (and being foiled in the attempt), knowingly made false 21 statements about PALMIERI. 22 35. The online community has reasonably understood the statements to mean 23 that PALMIERI used violence against OSBORN, sexually assaulted her, and on at least 24 some occasions drugged OSBORN in order to engage in forced sexual activity. 25 36. The statements were and are false. 26 if; 37. As a result of publicizing these falsities, Plaintiffs have suffered harm to 27 intellectual property, business, trade, and reputation. 28 3 8. Each of the statements in paragraph 27 (highlighted) are defamatory on their 5.3 7 COMPLAINT FOR DAMAGES Doc# 1 Page# 8 -- Doc ID 1715895168 - Doc Type OTHER (Page 9 of 78) 1 face constituting defamation per se. 2 39. Defendant OSBORN knew thateach of the statements and depictions set 3 forth above were false, reasonably should have known they were false, and acted 4 maliciously or with oppression with the intent, or with despicable conduct, to harm 5 Plaintiffs. 6 40. As a direct and proximate cause of the above-described statements,'Plaintiffs 7 have suffered and will suffer emotional distressand have been, and continue to be, 8 embarrassed and humiliated by the false statements and implications and reasonably fear 9 that they will be shunned, avoided and subject to ridicule. 10 41. Defendants, and each of them, have acted with knowledge that their . ll depictions of Plaintiffs were false and with a reckless disregard of truth or falsity. .12 Defendants? conduct was intended by them to cause injury to Plaintiffs, and was 13 despicable conduct" carried on with a willful and conscious disregard of the rights, 14 reputation, and safety of Plaintiffs. As such, Plaintiffs are entitled to recover punitive and 15 exemplary damages in an amount sufficient to punish Defendants and deter them from 16 conduct in the ?Jture. l7 SECOND CAUSE-OF ACTION 18 FALSE LIGHT 19 (Against Defendant OSBORN and DOES 1-50) 20 42. - Plaintiff re-alleges and incorporates by reference all paragraphs above as 21 though fully set forth in detail herein. . 22 43. Defendants, and each of them, publicized onl-ine to the ._.world at large 23 information or material showing Plaintiff in a false light. Speci?cally: 24 The'?rst time he took advantage of me was when I was around 15. He .25 was 10 years older than me. I ?came to in the back of his car extremely 26 :1 intoxicated (from drinks he had given me that night). . 27 44. There is ample, clear and convincing evidence that OSBORN knew that the 28 piijalication would create a false impression about PALMIERJ. I VERIFIED COMPLASINT FORDAMAGES Doc# 1 Page# 9 Doc ID 1715895163 Doc Type OTHER (Page 10 of 78) 7 45. Moreover, the false light created was that Plaintiff engaged in sexual activity 1 2 with OSBORN while under the age of 18. However, both PALMIERI and OSBORN were 3 residents of Canada and at the time the sex acts were alleged to have occurred, OSBORN consent. 5 46. Defendants knew of the falsity of die publicized matter and the false light '6 in which Plaintiffs would be placed. 7 47. Defendant OSBORN knew. that each of the statements and depictions set 8" forth above were false, reasonably should have known they were false, and acted I 9 maliciously or with oppression with the intent, or with deSpicable conduct, to harm 10 Plaintiffs. 48. As a direct and proximate cause of the above-described statements, Plaintiffs 12 have suffered and will suffer emotional distress and have been, and continue to be, 13 embarrassed and humiliated by the false statements and implications and reasonably fear 14 that they will be shunned, avoided and subject to ridicule. 15 49. Defendants, and each of them, have acted with knowledge that their 16 depictions of Plaintiffs were false and with a reckless disregard of truth or falsity. 17 Defendants? conduct was intended by them to cause? injury to Plaintiffs, and was . 18 despicable conduct carried on with a willful and conscious disregard of the rights, 19 reputation, and safety of Plaintiffs. As such, Plaintiffs are entitled to recover punitive and 20 exemplary damages in an amount sufficient to punish Defendants and deter them from i 21 conduct in the future. 22 THIRD CAUSE OF ACTION 23 BREACH OF CONTRACT 24 (Against Defendant OSBORN and DOES 1-50) 25 50. Plaintiff re-alleges and incorporates by reference all paragraphs above as 26 tlrt?jiigh fully set forth in detail herein. ~27 51. PALMIERI and OSBORN entered into acontract, attached herein as 28 Eighibit A. i 9 VERIFIED COMPLAINT FOR DAMAGES Doc# 1 Page# 10 Doc ID 1715895168 - Doc Type OTHER (Page 11 of 78) - 1 52. From the date of entering into said agreement to the present, Plaintiffs have 2 . performed all or substantially all of the signi?cant things that the contract required him 3 to do. 4 53. However, by publicizing to the online community the aforementioned .5 . disparaging comments, which Defendant knows to be false, OSBORN has thusly breached 6 the covenant of good faith and fair dealing. 7 54. As a result of this interference, PALMIERI, on information and belief, has 8 suffered a substantial loss in royalties from songs generated while, OSBORN and 9 PALMIERI still worked together. 10 FOURTH. CAUSE OF ACTION 1 INTENTIONAL INTERFERENCE WITH .12 CONTRACTUAL RELATIONS 13 (Against Defendant OSBORN and DOES 1-50) 14 55. Plaintiff re-alleges and incorporates by reference all paragraphs above as 15 though fully set forth in detail herein. 16 i 56. PLAINTIFFS were in a business relation with C3 Management and 17 Paradigm Booking Agency that Was resulting in economic benefit to Plaintiff with a now 18 cancelled North American tour (with 3 of approximately 30 shows in Canada) and losses- 19 in excess of $300,000.00. 20 57. 011 information and belief, Defendants knew that their existed an agreement 21 with a management company, namely C3 Management and Paradigm Booking Agency. 22 58. Defendants engaged in making defamatory and false accusations against 23 PALMIERI, withthe intent to disrupt their relationship or that Defendants knew that such 24- diSruption of the relationship was certain or substantially certain to occur. 25 59. As a result of said defamatory comments, said relationships with 26 Management Company C3 and Paradigm Booking Agency were terminated. . 27 60. PLAINTIFF were harmed and OSB conduct was a substantial factor 28 in Etrusng Plaintiffs PALMIERI and CASTLES harm. 10 - VERIFIED COMPLAINT FOR DANIAGES Doc# 1 Page# 11 - Doc ID 1715895168 - Doc Type OTHER (Page 12 of 78) 1 FIFTH CAUSE OF ACTION 2 INTENTIONAL INTERFERENCE WITH 3 PROSPECTIVE ECONOMIC RELATIONS 4 (Against Defendant OSBORN and DOES 1-50) 5 60. Plaintiff re-alleges and incorporates by referenceiall paragraphs above as 6 though fully set forth in detail herein. 7 61. On information and belief, Defendants knew that their existed an agreement 8 with a management company, namely C3 Management and Paradigm Booking Agency. 9 62. Defendants knew that their existed an agreement with a management 10 company, namely C3 Management and Paradigm Booking Agency. 11 63. Defendants engaged in making defamatory and false accusations against 12 PALMIERI, with the intent to disrupt their relationship or that Defendants knew that such 13 disruption of the relationship was certain or substantially certain to occur. - I 14 SIXTH CAUSE ACTION 15 CONSPIRACY 16 (Against All Defendants) 17 64. Plaintiff re-alleges the information set forth in Paragraphs 1 through 62 18 above, and incorporates these paragraphs into this cause of action as if they were fully 19 alleged herein. I I 2O 65. Defendant REYES was aware that OSBORN planned to wrongfully defame 21 and harm the reputation of Plaintiffs PALMIERI and CASTLES. 22 66. KEYES agreed with OSBORNE agreed and on at least one occasion 23 attempted to involve Arriane Duyerre in order to have-said defamatory comments made 24 pub?c. . 25 67. As a direct and proximate result of defendants fraudulent conduct, Plaintiff 26 hag?suffered damage in an'amount in excess of the jurisdictional limit of this Court 27 - acgording to proof. at time of trial. 28 WHEREFORE Plaintiffs pray for judgment against Defendants jointly and - 11 . VERIFIED COMPLAINT FOR DAMAGES Doc# 1 Page# 12 Doc ID 1715895168 - Doc Type OTHER (Page severally as follows: 2 1. For general and special damages in the amount to be proven at trial; . 3 2 For exemplary and punitive damages; 4 3 For attorney?s fees as allowed by law; I 5 For interest, including prejudgment interest, at the legal rate;' 6 5 For costs of suit herein incurred. '7 6 For restitution of all monies and pro?ts to be disgorged from Defendants? 8 unfair business practices in an amount according to proof at time Of trial 9 7. For such other and further relief as the court may deem appropriateSHANE BERN Attorney for Plainti f, CLAUDIO PALMIERI aka ETHAN KATH and; CASTLES . $.45 MN :33 ?3 12 ?4 VERIFIED COMPLAINT FOR DANIAGES Doc# 1 pages 13 - Doc ID 1715895168 - Doc Type omen