ALLISON HALEY District Attorney, County of Napa Katy Yount (SBN 279550) Deputy District Attorney 1127 First Street, Suite Napa, CA 94559 Telephone: (707) 253-4211 Facsimile: (707) 253-4041 (For list of additional plaintiffs counsel, SEP 0 4 2013 see attached Appendix to Stipulation) CLERK OF THE NAPA SUPERIOR COURT BY: J. OLIVER Attorneys for Plaintiff DEPUTY SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF NAPA 1801001175 PEOPLE OF THE STATE OF CALIFORNIA, CASE NO. Plaintiff, FINAL JUDGMENT PURSUANT TO v. STIPULATION Goop, Inc., Defendant. Plaintiff, the People of the State of California, (the ?People?) appears through its attorneys: Allison Haley, District Attorney of Napa County, by Katy Yount, Deputy District Attorney; Nancy E. O?Malley, District Attorney of Alameda County, by Shara Beltramo, Deputy District Attorney; Edward S. Berberian, District Attorney of Marin County, by Andres H. Perez, Deputy District Attorney; Dean lippo, District Attorney of Monterey County, by Amy Anderson, Deputy District Attorney; Tony Rackauckas, District Attorney of Orange County, by Tracy E. Hughes, Senior Deputy District Attorney; Jeffrey F. Rosen, District Attorney of Santa Clara County, by Yen B. Dang, Supervising Deputy District Attorney; Jeffrey S. Rosell, District Attorney of Santa Cruz County, by Douglas Allen, Assistant District Attorney; Stephanie A. Bridgett, District Attorney of Shasta County, by Anand ?Lucky? Jesrani, Senior 1 FINAL JUDGMENT PURSUANT TO STIPULATION Deputy District Attorney; Krishna A. 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. Defendant Goop, Inc., a Delaware Corporation, appears through its attorneys, Latham Watkins LLP, by Jennifer L. Barry, Esquire. Plaintiff and Defendant (the ?Parties?) have stipulated that this Final Judgment Pursuant to Stipulation (hereinafter the udgment?) may be entered without trial or adjudication of any issue of fact or law. Nothing in this Judgment shall be construed as an admission or denial by Defendant of any fact, issue of law or violations of law alleged generally or speci?cally in the Complaint. IT IS HEREBY ORDERED, ADJUDGED, AND DECREED as follows: 1. The Judgment has been reviewed by this Court and is found to have been entered in good faith and to be, in all resPects, just, reasonable, equitable and adequate to protect the public from the occurrence in the future of the conduct alleged in the Complaint. 2. Unless otherwise stated, all obligations imposed upon Defendant by the terms of this Judgment are ordered pursuant to Sections 17200, et seq, and 17500, et seq., of the California Business and Professions Code, including Sections 17203, 17204, 17206, 17535, and 17536. 3. The Parties waive the right to appeal this Judgment both as to form and content. JURISDICTION 4. This civil enforcement action is brought in the public interest under the laws of the State of California. Defendant has offered for sale and/or sold products throughout the State of California, including Napa County. Therefore, Napa County Superior Court (?Court?) has jurisdiction of the subject matter hereof and of the Parties hereto. A APPLICABILITY 5. This Judgment is applicable to Defendant Goop, Inc., and to its agents, servants, employees, representatives, of?cers, directors, members, managers, subsidiaries, successors and assigns, in their capacities as such, and to any and all persons, employees, corporations, and other entities who are 2 FINAL JUDGMENT PURSUANT TO STIPULATION acting in concert or participating with the Defendant, with actual or constructive notice of this judgment (collectively, ?Defendant?). 6. Nothing in this Judgment shall excuse the Defendant from meeting any more-stringent requirements that may be imposed hereinafter by changes in applicable and legally binding legislation, regulations, ordinances, and/or permits. DEFINITIONS 7. The following phrases in this Judgment have the meaning set forth below: A. AND RELIABLE SCIENTIFIC means tests, analyses, research, studies, or other evidence based upon the expertise of professionals in the relevant area,'that have been conducted and evaluated in an objective manner by persons quali?ed to do so, using procedures generally accepted in the scienti?c community to yield accurate and reliable results. B. has the same meaning as set forth in 21 Code of Federal Regulations section C. has the same meaning as set forth in 16 CPR. section 255.0. D. means a food or dietary supplement (as de?ned in 21 USC ?321 (f3) sold, offered for sale or distributed, directly or indirectly, to consumers. I E. means a device (as de?ned in 21 USC ?321 sold, offered for sale, or distributed, directly or indirectly, to consumers. F. ?Defendant? means G00p, Inc., a Delaware Corporation, with its current principal place of business at 212 26th Street, Suite 206, Santa Monica, California, 90402, and all of its ?ctitious business names, subsidiaries, af?liates, any successor and/0r assignee, and any other business entity of which Defendant Goop, Inc. is a subsidiary. INJUNCTIVE RELIEF 8. For a period of ?ve (5) years following entry of this Judgment, Defendant shall be and is hereby enjoined and restrained, pursuant to California Business and Professions Code sections 17203, 17204, and 17535, from doing, directly or indirectly, any of the following within California: A. Violating the prOvisions of California Civil Code section 1770(a)(5), by representing that 3 FINAL JUDGMENT PURSUANT TO STIPULATION 10 11 12 13 14 15 16goods or services have sponsorship, approval, characteristics, ingredients, uses or bene?ts which they do not have; B. Advertising that any NUTRITIONAL SUPPLEMENT has any effect in any of the conditions, disorders, or diseases listed in California Health and Safety Code section 110403. C. 0 Advertising that any MEDICAL DEVICE has any effect on any of the conditions, disorders, or diseases listed in California Health and Safety Code section 110403. 9. Furthermore, for a period of ?ve (5) years following the entry of this judgment, Defendant shall be and is hereby enjoined and restrained, pursuant to California Business and Professions Code sections 17203, 17204 and 17535, from doing, directly or indirectly, any of the following within the State of California: A. Making and/or disseminating any statement regarding any NUTRITIONAL SUPPLEMENT or MEDICAL DEVICE that is false or misleading in any particular, or has the tendency or capacity to deceive or mislead; . B. Representing, expressly or by implication, that any NUTRITIONAL SUPPLEMENT can diagnose, mitigate, treat, cure, or prevent any unless the representation is non- misleading and such product: a. is subject to a ?nal over-the?counter drug monograph promulgated by the Federal Food and Drug Administration for such use and conforms to the conditions of such use; b. remains covered by a tentative ?nal OTC drug monograph for such use and adopts the conditions of such use; or c. is the subject of a new drug application for such use approved by the FDA and conforms to the conditions of such use; C. Representing, expressly or by implication that any MEDICAL DEVICE can diagnose, mitigate, treat, cure, or prevent any unless the representation is non-misleading and the FDA has approved such product after undergoing the Premarket Noti?cation 510(k) process, if so required. 4 FINAL JUDGMENT PURSUANT TO STIPULATION D. Making and/or disseminating any claim or representation about the nature, attributes, effects, ef?cacy, bene?ts, results or safety of any NUTRITIONAL SUPPLEMENT or MEDICAL DEVICE, unless, at the time of making and/or disseminating such claim or representation, it is true, not misleading, and Defendant already has in its?possession and relies upon COMPETENT AND RELIABLE SCIENTIFIC EVIDENCE concerning the NUTRITIONAL SUPPLEMENT or MEDICAL DEVICE for which the claim or representation is being made and/or disseminated that substantiates such claim or representation; E. Making and/or disseminating any claim or representation, either directly or indirectly, that misrepresents the existence, contents, validity, results, conclusions, or interpretations of any test, study or research; and /or F. Making and/or disseminating any claim or representation, in the form of an ENDORSEMENT in violation of any of the provisions of 16 CPR. 16 C.F.R. and/or 16 CPR (B) and/or (C). 10. Any amended statute or regulation, successor statute or regulation or renumbered statute or regulation will have the same force and effect as the statutes and regulations cited in this Judgment. MONETARY RELIEF 11. Defendant is hereby ordered to pay monetary relief in this matter as follows: A. Civil Penalties: Defendant is hereby ordered, pursuant to Business and Professions Code sections 17206 and 17536, to pay civil penalties in the total amount of ONE HUNDRED FORTY-FIVE THOUSAND DOLLARS Said amount shall be made payable to the ?Napa County Treasurer ffb/o District Attorney?s Of?ce,? which of?ce shall distribute the payments in equal amounts among the District Attorney of?ces representing the People in this action in accordance Government Code section 26506. Such monetary relief is due at the time of the ?ling of this Judgment and shall be sent to Deputy District Katy Yount, Napa County District Attomey?s Of?ce, 1127 First Street, Suite C, Napa, CA 94559. B. Investigative Costs: Defendant is further ordered, pursuant to Business and Professions Code sections 17203 and 17535, to pay investigative costs in the total amount of TWO HUNDRED 5 FINAL JUDGMENT PURSUANT TO STIPULATION NINETY-FOUR DOLLARS AND CENTS Said amount shall be made payable to the ?_?Napa County Treasurer f/b/o District Attorney?s Of?ce,? which of?ce shall distribute the payments to the District Attorney?s of?ces which incurred the costs. Such monetary relief is due at the time of the ?ling of this Judgment and shall be sent to Deputy District Katy -Yount, Napa County District Attorney?s Of?ce, 1127 First Street, Suite C, Napa, CA 94559. COMPLIANCE 12. For the purpose of securing compliance with the terms of this Judgment, for a period of ?ve (5) years following entry of this Judgment Defendant is hereby ordered and mandated to do all of the following in the event that it sells, advertises, or markets for sale any NUTRITIONAL SUPPLEMENTS or MEDICAL DEVICES after the date of the Judgment: A. Defendant shall create, maintain and make available to any representative of the People for inspection and copying, within ?fteen (15) days of any written request to do so, the following: (1) A ?le that contains all COMPETENT AND RELIABLE SCIENTIFIC EVIDENCE for all claims concerning the effect of a product on the structure or function of the human body, made and/or disseminated for any of Defendant?s NUTRITIONAL SUPPLEMENTS and MEDICAL DEVICES. Each such item of COMPETENT AND RELIABLE SCIENTIFIC EVIDENCE shall contain the date of its inclusion in this ?le; and (2) A ?le that contains all tests, clinical trials, reports, studies, surveys, demonstrations, information, or other evidence of which Defendant becomes aware, if any, that contradict, qualify, or call into question any claim or representation made and! or disseminated for any of Defendant?s NUTRITIONAL SUPPLEMENTS or MEDICAL DEVICES, or that contradict, qualify, or call into question the basis upon which Defendant relied upon such claim or representation, including but not limited to complaints from consumers and complaints or inquiries from governmental organizations. For each such item, the date of inclusion shall be noted. B. Within sixty (60) days after the date of this Judgment, Defendant. shall provide a copy of this Judgment to each of its current of?cers, and to all employees having primary authority over such 6 FINAL JUDGMENT PURSUANT TO STIPULATION sales, advertising, or policy responsibility with respect to nutritional supplements and/or medical devices; C. Defendant shall provide a copy of this Judgment to each of their future of?cers, and to all future employees having primary authority over such sales, advertising, or policy responsibility with respect to nutritional supplements and/or medical devices within ?ve (5) days after the person commences his or her responsibilities; D. Defendant shall obtain from each person who is provided a copy of this Judgment pursuant to the terms of subparagraph or C, above, a legible signed written acknowledgment indicating that such person received a copy of this Judgment, that he/ she read it, understood its terms, and agreed to fully abide by all of its terms; and E. Defendant shall maintain and upon request make available, within ?fteen (15) days of receipt of a written request, to representatives of the People for inspection and copying, each or all legible signed written acknowledgments as required by subparagraph D, above. JURISDICTION RETAINED 13 . Jurisdiction is retained for the purposes of enabling any party to this Judgment to apply to the Court at any time for such order or directions as may be necessary or appropriate for the construction of- or carrying out of this Judgment, for the modi?cation of any of the inj unctiv? provisions thereof, for the enforcement of compliance therewith, or for the punishment of violations there under. EFFECT AND ENTRY 14. This udgment shall take effect immediately upon entry hereof. mesa aura; DATED: [sl 1% By: Judge of the Superior Court 7 FINAL JUDGMENT PURSUANT TO STIPULATION APPENDIX NANCY E. District Attorney, County of Alameda Shara Beltrarno, SBN 184796 Deputy District Attorney 7677 Oakport Street, Suite 650 Oakland, CA 94621 (510) 383-8600 EDWARD S. BERBERIAN District Attorney, County of Marin Andres Perez, SBN 186219 Deputy District Attorney 3501 Civic Center Drive, Room 145 San Rafael, CA 94903 (415) 499?6450 DEAN LIPPO District Attorney, County of Monterey Amy Anderson, SBN 301732 Deputy District Attorney 1200 Aguajito Road, Room 301 Monterey, CA 93 940 (831) 647-7770 TONY RACKAUCKAS District Attorney, County of Orange Tracy E. Hughes, SBN 180494 Senior Deputy District Attorney 401 Civic Center Drive Santa Ana, CA 92701 (714) 834-6504 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 KRISHNA A. ABRAMS District Attorney, County of Solano Diane M. Newman, SBN 179926 Deputy District Attorney 675 Texas Street, Suite Fair?eld, CA 94533 (707) 421-6800 JEFFREY F. ROSEN District Attorney, County of Santa Clara Yen B. Dang, SBN 169388 Supervising Deputy District Attorney 70 W. Hedding St., West Wing San Jose, CA 95110 (408) 792-2818 JEFFREY S. ROSELL District Attorney, County of Santa Cruz Douglas Allen, SBN 99239 Assistant District Attorney 701 Ocean St., Suite 200 Santa Cruz, CA 95060 (831) 454-2559 STEPHANIE A. BRIDGETT District Attorney, County of Shasta Anand ?Lucky? Jesrani, SBN 23 8252 Senior Deputy District Attorney 1355 West Street Redding, CA 96001 (530) 245-63 00 8 FINAL JUDGMENT PURSUANT TO STIPULATION