20STCV15180
Assigned for all purposes to: Stanley Mosk Courthouse, Judicial Officer: David Cowan
Electronically FILED by Superior Court of California, County of Los Angeles on 04/21/2020 11:18 AM Sherri R. Carter, Executive Officer/Clerk of Court, by M. Barel,Deputy Clerk

1 MICHAEL N. FEUER, Los Angeles City Attorney, SBN 111529
WILFREDO R. RIVERA, Deputy Chief, SBN 186890
2 CHRISTINA V. TUSAN, Supervising DCA, SBN 192203
3 WILLIAM R. PLETCHER, Deputy City Attorney, SBN 212664
MIGUEL J. RUIZ, Deputy City Attorney, SBN 240387
4 REBECCA A. MORSE, Deputy City Attorney, SBN 314853
OFFICE OF THE LOS ANGELES CITY ATTORNEY
5 CRIMINAL AND SPECIAL LITIGATION BRANCH
200 North Main Street, 500 City Hall East
6 Los Angeles, California 90012-4131
Telephone (213) 978-8707/Facsimile (213) 978-8111
7 email: miguel.j.ruiz@lacity.org
8

Attorneys for Plaintiff, the
9 PEOPLE OF THE STATE OF CALIFORNIA

[NO FEE - Govt. Code§ 6103)

10

SUPERIOR COURT OF THE STATE OF CALIFORNIA

11

COUNTY OF LOS ANGELES

12
13

Case No. - - - - - - - -

THE PEOPLE OF THE STATE OF
CALIFORNIA,

14

Plaintiff,

15
v.
16
17

ROOTMD, INC., a California corporation; and
DOES 1 through 10, inclusive,

18

Defendants.

19
20

COMPLAINT FOR PERMANENT
INJUNCTION, CIVIL PENALTIES,
RESTITUTION, AND OTHER
EQUITABLE RELIEF

[VERIFIED ANSWER REQUIRED
PURSUANT TO CODE OF CNIL
PROCEDURE SECTION 446]

21
22
23
24
25
26
27
28

COMPLAINT FOR INJUNCTION, CIVIL PENALTIES, AND OTHER EQUITABLE RELIEF

 Plaintiff, the People of the State of California, appearing through their attorney, Michael
2 N. Feuer, City Attorney for the City of Los Angeles, allege the following on information and
3 belief:

INTRODUCTION

4

5

1.

This civil law enforcement action involves exposure and immunity test kits for the

6 novel coronavirus SARS-CoV-2 ("COVID-19") falsely advertised for sale as "at-home" self7 collection kits. There currently are no such Food and Drug Administration ("FDA")-approved
8 "at-home" self-collection test kits. Unless the FDA has approved or otherwise exempted a
9 manufacturer's at-home test kit, it cannot lawfully be sold in California or elsewhere in the
10 United States.
11

2.

On March 4, 2020, the City of Los Angeles, the County of Los Angeles, and the

12 State of California all declared a public health emergency related to COVID-19, to help protect
13 public health from this serious pandemic. The COVID-19 virus can cause symptoms including
14 high fever, sharp cough, and shortness of breath or breathing difficulty. In some cases, the virus
15 quickly progresses to pneumonia, Acute Respiratory Distress Syndrome (ARDS), kidney
16 failure, and other serious life-threatening complications. On March 11, 2020, the World Health
17 Organization recognized the spread of COVID-19 as a global pandemic.
18

3.

To date, the COVID-19 pandemic has been particularly dangerous-even deadly-

19 for the elderly and those with other pre-existing conditions, although all age groups have been
20 impacted.
21

4.

The threat from COVID-19 is growing exponentially throughout the United States,

22 including in Los Angeles and other areas of California.
23

5.

The harms of the COVID-19 pandemic are made worse by the spread of confusion,

24 misinforn1ation, and the proliferation of consumer scams and frauds regarding this novel
25 coronav1rus.

26 II

27 II
28 II

1
COMPLAINT FOR INJUNCTION, CIVIL PENAL TIES, AND OTHER EQUITABLE RELIEF

 6.

Among the chief aids to public health available in the face of this pandemic is

2 accurate, reliable, and widespread testing. Countries with higher relative per capita testing rates
3 have, thus far, had the most relative success in blunting the exponential growth, or "flattening
4 the curve," of COVID-19 cases in their countries. 1
5

7.

Unfortunately, as this public health emergency initially developed in the United

6 States and California, COVID-19 testing was not initially widely available, and due to the

7 shortages, was tightly restricted and rationed by public health authorities. The City of Los
8 Angeles has recently announced a testing program that is available to all sympotmatic residents

9 in Los Angeles County. 2

8.

10

In addition to the public health benefit of widespread testing, consumers also have

11 important reasons to seek testing: consumers may have had a contact with someone diagnosed
12 with COVID-19; consumers may have a symptom that could be consistent with COVID-19; or
13 consumers may wish to put their minds at ease (or know to seek treatment). Consumers might
14 also wish to confirm that they do not have CO VID-19 in order to better protect more vulnerable
15 members of their families.

16

9.

The FDA has announced guidance to help rapidly increase the type and variety of

17 testing available in this pandemic health emergency through emergency use authorizations and
18 other policies. 3
19 II
20 II
21 II
22
23

1 See https:Ilwww .nytimes. corn/2020l03l23lworld/asia/coronavirus-south-korea-flattencurve.html (accessed April 13, 2020).

24
2 https:lllacovidprod.service-now.corn/rrs (accessed April 11, 2020); see also
25 https ://www .latimes. comlcalifomia/story/2020-04-07I all-la-residents-can-now-get-coronavirustests-heres-where-to-go (accessed April 11, 2020).

26

3 See, e.g., https :Ilwww .fda.govlregulatory-informationlsearch-f<la-guidance-documentslpolicy2 7 diagnostic-tests-coronavirus-disease-2019-during-public-health-emergency (accessed April 12,
28 2020).

2

COMPLAINT FOR Il\"JUNCTION, CIVIL PENALTIES, AND OTHER EQUITABLE RELIEF

 10. But to date, the FDA has not approved any COVID-19 exposure and immunity tests
2 for at-home testing, and in fact has warned consumers about the dangers of at-home testing. 4
11. Because these "at-home" tests have not been vaiidated by the FDA, the reliability of

3

4 these "at-home" tests have varied wildly and "tests of 'frankly dubious quality' have flooded the
5 American market, leading to false positives and false negatives. 5
12. In fact, the World Health Organization recently came out and declared that until

6

7 more validation on serological antibody testing has occurred, it "does not recommend the use of
8 antigen-detecting rapid diagnostic tests for patient care. " 6
13. Nevertheless, the marketplace has seen a rise in the number of companies and

9

10 individuals making false claims that they have FDA-approved COVID-19 test kits, often, but
11 not always, serological antibody tests. "At-home" testing kits are particularly enticing to
12 consumers in Los Angeles (and many other areas of the United States), who are under various
13 "stay-at-home" or "safer-at-home" orders and guidance from the governor, the mayor, the
14 County, and the federal Center for Disease Control (CDC).
15

14. Here, the Defendants have widely marketed and sold "at-home" test kits on the

16 internet and across social media platforms.
15. In this public health emergency, consumers require--and under California law are

17

18 entitled to-accurate, reliable, and truthful information about COVID-19, including its testing,
19 treatments, mitigations, and cures. The health, and even the lives, of California consumers
20 depend on it.
21

II

22

II

23

See, e.g., https://www.fda.gov/news-events/press-announcements/coronavirus-covid-l 9-updatefda-alerts-consumers-about-unauthorized-fraudulent-covid-l 9-test-kits (accessed April 12,
25 2020).
24

4

26

5

See, e.g., https://www.nytimes.com/2020/04/l 9/us/coronavirus-antibody-tests.html (accessed
April 19, 2020).

27
See https://www.who.int/news-room/commentaries/detail/advice-on-the-use-of-point-of-care28 immunodiagnostic-tests-for-covid-19 (accessed April 19, 2020)
6

3

CO1\'1PLAINT FOR INJUNCTION, CIVIL PENAL TIES, AND OTHER EQUITABLE RELIEF

 PARTIES

1

16. Plaintiff, the People of the State of California (the "People"), is the sovereign power

2
of the State of California (Gov. Code§ 100), authorized to enforce Business and Professions
3

Code section 17200 et seq. ("Unfair Competition Law" or "UCL") and Business and Professions
4

Code section 17500 et seq. ("False Advertising Law" or "FAL") in civil law enforcement
5

actions. The People have an interest in ensuring that the individuals and entities doing business
6
in this state comply with all applicable laws. The People act here by and through Michael N.
7
Feuer, Los Angeles City Attorney, under the authority granted to them by Business and
8

Professions Code sections 17204, 17206, 17508, 17535, and 17536.
9

17. Defendant RootMD, Inc. ("RootMD"), is a California corporation, headquartered

10
and with its principal place of business in Santa Monica, California. At all relevant times,
11

RootMD has transacted business in California, including Los Angeles City and County.
12

RootMD purports to be a "digital platform for functional medicine, aimed at personalized
13

medicine for chronic gut diseases," but also claims to market an "at home" COVID-19 expsure
14

and immunity test.
15

18.

Defendants sued herein as Does 1 through 10, inclusive, are presently unknown

16

to the People who therefore sue these unlmown Defendants by such fictiti ous nan1es. When the
17

true names and capacities of any unknown Defendants have been ascertained, the People wilI
18
ask leave of the Court to amend this Complaint and to insert in lieu of such fictitious names the
19

true names and capacities of any fictitiously named Defendants. The People are informed and
20

believe that Does 1 through 10 participated in, and are responsible for, the wrongful conduct
21
alleged in this Complaint.

22
19.

Each Defendant is a "person" within the meaning of Business and Professions

23
Code sections 17506 and 17201.
24
20.

Whenever this Complaint refers to "Defendants," it includes any and all

25
Defendants named in paragraphs 16 and 17 of this Complaint.
26
21.

At all relevant times, some or all Defendants acted as the agent of the others, and

27
all Defendants acted within the scope of their agency if acting as an agent of another.
28

4

COMPLAINT FOR INJUNCTION, CIVIL PENALTIES, AND OTHER EQUITABLE RELIEF

 1

22.

At all relevant times, Defendants together comprised an "organization of

2 persons" within the meaning of Business and Professions Code section 17201, in that they
3 associated together for the common purpose of engaging in a course of unlawful, unfair, and
4 fraudulent business acts and practices as alleged herein.
5

23.

At all relevant times, each Defendant acted individually and jointly with every

6 other Defendant in committing the acts alleged to have been committed by "Defendants" in this
7 Complaint.
8

24.

At all relevant times, each Defendant acted: (a) as a principal · (b) under express

9 or implied agency; and/or (c) witb actual or ostensible authority to perform the acts alleged in
l O this Complaint on behalf of every other Defendant.
11

25.

At all relevant times, each Defendant knew or realized, or should have known or

12 realized, that the other Defendants were engaging in or planned to engage in the violations of
13 law alleged in this Complaint. Knowing or realizing that the other Defendants were engaging in
14 such unlawful conduct, each Defendant nevertheless facilitated the commission of those
15 unlawful acts. Each Defendant intended to and did encourage, facilitate, or assist in the
16 commission of the unlawful acts, and thereby aided and abetted the other Defendants in the
l 7 unlawful conduct.
18

26.

Defendants have engaged in a conspiracy, common enterprise, and common

19 course of conduct, the purpose of which was and is to engage in the violations of law alleged in
20 this Complaint. The conspiracy, common enterprise, and common course of conduct continue
2 J to the present.
22
JURISDICTION AND VENUE

23

24

27.

This Court has subject matter jurisdiction over this matter pursuant to Business

25 and Professions Code sections 17203, 17204, 17206, 17500, 17508, 17535, and 17536.
26

28.

This Court has personal jurisdiction over each of the Defendants pursuant to

27 California Constitution, Article VI, section 10, and California Code of Civil Procedure section
28 410. JO in that each Defendant tha t is a corporation does substantial business in California; all of

5

CO:MPLAINT FOR INJUNCTION, CIVIL PENAL TIES, AND OTHER EQUITABLE RELIEF

 I the Defendants have purposely availed themselves of the benefits of doing business in this state;
2 and Defendants' violations of law alleged herein occurred, in whole or in part, in this state.
3

29.

The violations of law alleged in this Complaint occurred in Los Angeles City and

4 County and throughout the State of California. Venue for this matter properly lies within Los
5 Angeles County because the violations of law alleged in this Complaint occurred, in whole or in
6 part, in Los Angeles County.

STATUTORY BACKGROUND

7

8 I.

9

THE UNFAIR COMPETITION LAW

30.

Business and Professions Code section 17200, ("Unfair Competition Law" or

10 "UCL") provides that "unfair competition shall mean and include unlawful, unfair or fraudulent
I I business practice."

l2

31 .

Business and Professions Code section 17203 provide that "(a)ny person

13 performing or proposing to perform an act of unfair competition within this state may be
J4 enjoined in any court of competent jurisdiction." Section 17203 also permits recovery of any

15 "interest in money or property, real or personal" acquired by a violation of the Unfair
l6 Competition Law.
17

32.

Business and Professions Code section 17206, subdivision (a), provides that any

18 person violating section 17200 "shall be liable for a civi l penalty not to exceed two thousand
19 five hundred dollars ($2,500) for each violation, which shall be assessed and recovered in a civil
20 action brought in the name of the people of the State of California ... by any city attorney of a
21 city having a population in excess of 750,000."
22

33 .

Under Business and Professions Code section 17205, these remedies and penalties

23 are "cumulative to each other and to the remedies or penalties available under all other laws of
24 this state."
25 II.
26

THE FALSE ADVERTISING LAW

34.

Business and Professions Code section 17500 ("False Advertising Law" or

27 "FAL") provides that it is unlawful for any person "with the intent directly or indirectly to
28 dispose ofreal or personal property . .. to make or disseminate or cause to be made . . . any

6

COMPLAINT FOR INJUNCTION, CIVIL PENAL TIES, AND OTHER EQUITABLE RELIEF

 I statement, concerning that real or personal property ... which is untrue or misleading, and which
2 is known, or which by the exercise of reasonable care should be known, to be untrue or
3 misleading."
4

35 .

Business and Professions Code section 17535 authorizes "any city attorney" to

5 seek an iajunction to prevent such untrue or misleading statements, and to provide restitution for
6 victims of such statements.
7

36.

Business and Professions Code section 17536 provides that any person violating

8 section 17500 "shall be liable for a civil penalty not to exceed two thousand five hundred dollars
9 ($2,500) for each violation, which shall be assessed and recovered in a civil action brought in the
10 name of the people of the State of California ... by any ... city attorney." These civil penalties
11 are cumulative to those obtained under Section 17200.
12 Ill.
13

THE SHERMAN FOOD AND DRUG ACT

37.

Health and Safety Code section 109875 et seq. (the "Sherman Food, Drug, and

14 Cosmetic Law" or "Sherman Law") regulates the manufacture and sale of medical devices in
15 California (including incorporation of relevant federal standards).
16

38.

Health and Safety Code section 109920 defines "device" as "any instrument,

17 apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related
18 article, including any component, part, or accessory, that is .. . (b) Intended for use in the
19 diagnosis of disease or other condition, or in the cure, mitigation, treatment, or prevention of
20 disease in humans or any other animal."
21

39.

Health and Safety Code section 109948.1 defines "home medical device," in

22 relevant part, as "a device intended for use in a home care setting including, but not limited to ..
23 . (4) Respiratory disease management devices .. . ( 11) Disposable medical supplies [and] ( 12) In
24 vitro diagnostic tests. " 7 (Health & Saf. Code, § 109948. l , subd. (b ). )
25 II

26
2 7 7 An ''.in vitro" test is test that takes place in a test tube, culture dish, or elsewhere outside a livin
28 orgamsm.

7

COMPLAINT FOR INJUNCTION, CIVIL PENAL TIES, AND OTHER EQUITABLE RELIEF

 40.

1

It is unlawful to sell a home medical device in California that is misbranded

2 (Health & Saf. Code, § 111330), and devices can only be sold if they comply with federal
3 regulations (Health & Saf. Code, § 111550).

THE FDA HAS NOT APPROVED ANY AT-HOME TEST KITS

4

41.

5

The FDA is responsible for validating and authorizing the safety and

6 effectiveness of drugs and medical devices, such as drug test kits.

7

42.

As a result of the COVID-19 pandemic, the FDA has issued guidelines to

8 accelerate the availability of COVID-19 testing ("Interim Guidelines"), while still retaining
9 standards for reliability and validity of such devices. 8

43.

10

The Interim Guidelines emphasize the importance of FDA validation of all tests

11 because "[i]n the context of a public health emergency involving pandemic infectious disease, it
12 is critically important that tests are validated as false results can have broad public health impact
13 beyond that to the individual patient." 9

14

44.

15

The Interim Guidelines provide guidance in four different areas:

A. Part A is directed to clinical labs developing tests and the process for received
Emergency Use Authorization;

16

B. Part B is directed to States allowing them to set their own validation standards for

17

testing;

18

19

C. Part C provides guidance to commercial manufacturers of diagnostic tests that are

20

provided to laboratories or health care providers; and
D. Part D provides guidance to commercial manufacturers of diagnostic tests relying

21

22

solely on blood; 10

23 //

24 //

25
8

26

27

28

https://www.fda .gov/media/135659/download (accessed Ap ril 12, 2020).

9 Id.

at p. 3.

10 Id.

8

COMPLAINT FOR INJU1"CTION, CIVIL PENAL TIES, AND OTHER EQUITABLE RELIEF

 45.

Importantly, none of the Interim Guidelines apply to at-home test kits. Parts C

2 and D, which are directed to commercial manufacturers of Corona test kits, specifically state
3 that "this policy does not apply to at home testing." 11
4

46.

The FDA has updated its website with a "Frequently Asked Questions" page,

5 where, in response to the question of,"[a]re there any tests that I can purchase to test myself at
6 home for COVID-19?", states: "[a]t this time, the FDA has not authorized any test that is
7 available to purchase for testing yourself at home for COVID-19, including self-collection of a
8 specimen with or without the use of telemedicine. The FDA sees the public health value in
9 expanding the availability of COVID-19 testing through safe and accurate tests that may include
10 home collection, and we are actively working with test developers in this space.'' 12
47. The FDA has also specifically warned that "serological" testing, i.e., blood tests for

11

12 COVID-19 antibodies-the type of testing at issue in this case--should not be used alone
13 without other tests or diagnostic tools:
14

Serological tests measure the amount of antibodies or proteins present in the

15

blood when the body is responding to a specific infection, like COVID-19. In

16

other words, the test detects the body's immune response to the infection caused

17

by the virus rather than detecting the virus itself. In the early days of an infection

18

when the body's immune response is still building, antibodies may not be

19

detected. This limits the tesfs effectiveness for diagnosing COVID-19 and why it

20

should not be used as the sole basis to diagnose COVID-19. 13

21 II
22 II
23
24
11

Id.

25
12 https ://www.fda.gov/medical-devices/emergency-situations-medical-devices/faqs-diagnostic26 testing-sars-cov-2 (emphasis added) (accessed April 12, 2020).

27
https://www.fda.gov/news-events/press-announcements/ coronavirus-covid-19-update28 serological-tests (accessed April 11 , 2020).
13

9

COMPLAINT FOR INJUNCTION, CIVIL PENAL TIES, AND OTHER EQUITABLE RELIEF

 DEFENDANTS' UNLAWFUL BUSINESS PRACTICES

1

2

48.

Incorporated in 2018, defendant RootMD represents that it is a "a "digital

3 platform for functional medicine, aimed at personalized medicine for chronic gut diseases." 14
4

49.

Defendant RootMD owns and operates the website "http://rootmd.com"

5 ("RootMD Website").
6

50.

On the RootMD Website, RootMD sold an "at-home" COVID-19 expsoure and

7 immunity test kit ("At-Home COVID-19 Test Kit"). Selling for $249.00, RootMD made the
8 following representations:
9

1.

10

"At-home Covid-19 exposure and immunity testing"

11. "COVID-19 Check Blood Testing On Your Terms"

11
m. "We are the first to offer at-home collection for this testing allowing all
12
who order the test to easily collect and ship their sample in the

13
convenience and safety of their home."
14
1v. "Given the tremendous lack of certainty surrounding who has been

15

exposed to COVID-19, we believe this test provides well-needed

16

information and clarity. This test was used extensively by the Chinese

17

CDC to confirm who in their population had been exposed and was now

18

immune."

19
20

v. "Is this test FDA approved? While the test has not yet completed the

21

several month investigation periods by the FDA to be labeled as

22

approved, they did issue a statement on March 16th allowing its use

23

under emergency provisions."

24 II
25
26
27
28

14

See https://rootmd.com/aboutus (accessed April 17, 2020).

10

COMPLAINT FOR INJUNCTION, CIVIL PENAL TIES, AND OTHER EQUITABLE RELIEF

 51.

The At-Home COVID-19 Test Kit is a "device" and a "home medical device"

2 under Health and Safety Code sections 109920 and 109948.1, because, among other reasons, it is
3 designed for the diagnosis of a disease or other condition, and intended for home use as an in
4 vitro diagnostic test related to a respiratory disease or condition.

5

52.

The People contacted RootMD on April 7, 2020 regarding these allegations, and

6 RootMD represented to the People that they stopped selling At-Home COVID-19 Test Kit

7 directly to consumers as of April 8, 2020.
8

FIRST CAUSE OF ACTION:

9

VIOLATIONS OF BUSINESS AND PROFESSIONS CODE SECTION 17500

10

(UNTRUE OR MISLEADING REPRESENTATIONS)

11

(Against All Defendants)

12

53 .

The People restate and incorporate herein each and every allegation set forth in

13 paragraphs 1-52 above, as though fully alleged herein.
14

54.

Beginning no later than March 2020, and continuing to the present, Defendants,

15 and each of them, with each other or with other unknown persons, have engaged in and continue

16 to engage in, aided and abetted and continue to aid and abet, and conspired to and continue to
17 conspire to violate Business and Professions Code section 17500 by making or disseminating
18 untrue or misleading statements, or causing untrue or misleading statements to be made in the in
19 the City and County of Los Angeles, with the intent to induce the purchase of at-home test kits,
20 when they knew or by the exercise of reasonable care should have known the statements were
21 untrue, misleading, and unsubstantiated. Defendants' untrue or misleading representations
22 include, but are not limited to, the following:
23

A. Representing with respect to Defendants' testing kits, that the Defendants

24

advertised the At-Home COVID-19 Test Kit as an "At-Home Kit." Such

25

statements are untrue and misleading because the FDA has not authorized the use

26

of any in-home testing kits for COVID-19, including tests kits using self-collection

27

with or without telemedicine.

28 //

11

COMPLAINT FOR INJUNCTION, CIVIL PENALTIES, AND OTHER EQUITABLE RELIEF

 1

B. Representing, with respect to the At-Home COVID-19 Test Kit, that one can "[c]

2

heck Blood Testing [o]n [y]our [t]erms." Such statements are untrue and/or

3

misleading because the FDA has not authorized the direct sale to consumers of any

4

in-home testing kits for COVID-19, including tests kits using self-collection with

5

or without telemedicine.

6

C. Representing that "[w]e are the first to offer at-home collection for this testing

7

allowing all who order the test to easily collect and ship their sample in the

8

convenience and safety of their home." Such statements are untrue and/or

9

misleading because the FDA has not authorized the use of any in-home testing kits

10

for COVID-19, including tests kits using self-collection with or without

11

telemedicine.

12

D. Representing that " [g]iven the tremendous lack of certainty surrounding who has

13

been exposed to COVID-19, we believe this test provides well-needed information

14

and clarity. This test was used extensively by the Chinese CDC to confirm who in

15

their population had been exposed and was now immune. " Such statements are

16

untrue and/or misleading because the FDA has not validated the accuracy of nor

17

authorized the use of any in-home testing kits for COVID-19, including tests kits

18

using self-collection with or without telemedicine.

19

E. Representing that " [i]s this test FDA approved? While the test has not yet

20

completed the several month investigation periods by the FDA to be labeled as

21

approved, they did issue a statement on March 16th allowing its use under

22

emergency provisions." Such statements are untrue and/or misleading because the

23

FDA has not authorized the use of any in-home testing kits for COVID-19,

24

including tests kits using self-collection with or without telemedicine.

25

55.

Defendants knew, or by the exercise ofreasonable care should have known at the

26 time of making the statements, or causing the statements to be made, that the statements set forth
27 in Paragraph 54.A. through 54.E. were untrue or misleading.
28 //

12
COl\lPLAINT FOR INJUNCTION, CIVIL PENALTIES, AND OTHER EQUITABLE RELIEF

 1

56.

These violations render each Defendant liable to the People for civil remedies of

2 up to $2,500 for each violation under Business and Professions Code section 17536 and provide
3 the basis for other remedies.
4

57.

Defendants' conduct is in continuing violation of the False Advertising Law,

5 beginning on approximately March 2020, and is within four years of the filing of this Complaint.
6

SEOND CAUSE OF ACTION:

7

VIOLATION OF BUSINESS AND PROFESSIONS CODE 17200

8

(UNFAIR COMPETITION)

9

(Against All Defendants)

10

58.

The People restate and incorporate herein each and every allegation set forth in

11 paragraphs 1 through 57 above, as though fully alleged herein.
12

59.

Beginning no later than March 2020 and continuing to the present, Defendants,

13 and each of them, with each other or other unknown persons, have engaged in and continue to
14 engage in, aided and abetted and continue to aid and abet, and conspired to and continue to
15 conspire to engage in acts or practices that constitute unfair competition as defined by Business
16 and Professions Code section 17200. Such acts or practices include, but are not limited to, the
17 following:
18

A. Violating Business and Professions Code section 17200, because

19

Defendants' business acts and practices, as described above, as well as

20

similar conduct, are unlawful under section 17200;

21

B. Violating Business and Professions Code section 17200, because

22

Defendants' business acts and practices, as described above, as well as

23

similar conduct, are unfair under section 17200;

24

C. Violating Business and Professions Code section 17200, because

25

Defendants' business acts and practices, as described above, as well as

26

similar conduct, are fraudulent under section 17200;

27 II
28 II

13
COMPLAINT FOR INJUNCTION, CIVIL PENALTIES, AND OTHER EQUITABLE RELIEF

 D. Violating Business and Professions Code section 17200, because

1

Defendants' actions as described above, as well as similar conduct, are

2

,.,

unfair, deceptive, untrue, or misleading advertising under section 17200;

.:,

E. Violating Business and Professions Code section 17500, by making or

4

5

disseminating, or causing to be made or disseminated, statements before the

6

public with respect to the effectiveness that Defendants knew were untrue

7

and misleading and which were and are known by Defendants to be untrue

8

and misleading, as described above;

9

60.

By committing the acts alleged above, at all times material to this complaint, each

IO Defendant has engaged in unlawful business practices that constitute unfair competition within
l l the meaning of Business and Professions Code section 17200.
12

61.

By committing the acts alleged above, Defendants are liable to the People for civil

13 penalties ofup to $2,500 for each violation.
14

62.

Defendant's unlawful, unfair, and fraudulent business acts or practices, as

15 described above present a continuing threat to members of the public.

16

63 .

Defendants ' conduct was in continuing violation of the Unfair Competition Law,

17 beginning at a time unknown to the People but no later than March 2020, and continuing to
18 within four years of the filing of this Complaint.

PRAYER FOR RELIEF

19

20

Wherefore, the People pray for judgment as follows:

21

64.

That pursuant to Business and Professions Code sections 17203 and 17204 and

_2 the equitable powers of the Court, Defendants, and their successors, agents, representatives,
23 employees, and all persons who act in concert with Defendants be permanently enjoined from
24 engaging in unfair competition as defined in Business and Professions Code section 17200 et
25 seq . including, but not limited to the acts and practices alleged in this Complaint.
26 II

27 //
28 //

14

COMPLAINT FOR INJUNCTION, CIVIL PENALTIES, AND OTHER EQUITABLE RELIEF

 65.

That pursuant to Business and Professions Code section 17206, Defendants be

2 assessed a civil penalty of $2,500 for each violation of Business and Professions Code section
3 17200 et seq. that they committed, caused, aided and abetted or conspired to commit, as proved
4 at trial.

5

66.

That pursuant to Business and Professions Code section 17535, Defendants, their

6 successors, agents, representatives, employees, and all persons who act in concert with

7 Defendants be pennanently enjoined from making any untrue or misleading statements in
8 violation of Business and Professions Code section 17500 et seq., including but not limited to,

9 the untrue or misleading statements alleged in the Complaint.
10

67.

That pursuant to Business and Professions Code section 17536, Defendants be

11 accessed a civil penalty of $2,500 for each violation of Business and Professions Code sections
12 17500 et seq. that they committed, caused, aided and abetted, or conspired to commit, as proved
13 at trial.
14

68.

That Defendants be ordered to make direct restitution of any money or other

15 property that may have been acquired by the violations of Business and Professions Code section
16 17200 et seq. and 17500 et seq.
17

69.

That the People recover the costs of this action.

18

70.

Such other relief that the Court deems just and proper.

19

20 Dated: April 20, 2020

Resp•.'; •~tfo!.ly Submitted,

21

22

MICHAEL N. FEUER
Los Angeles City Attorney

23
24

By:

~~
,pl
Deputy City Attorney

25

26
27

28

15
COMPLAINT FOR INJUNCTION, CML PENAL TIES, AND OTHER EQUITABLE RELIEF