Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 1 of 31 Page ID #:1
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`BURSOR & FISHER, P.A.
`Frederick J. Klorczyk III (State Bar No. 320783)
`Neal J. Deckant (State Bar No. 322946)
`Brittany S. Scott (State Bar No. 327132)
`1990 North California Blvd., Suite 940
`Walnut Creek, CA 94596
`Telephone: (925) 300-4455
`Facsimile: (925) 407-2700
`E-mail: fklorczyk@bursor.com
` ndeckant@bursor.com
`bscott@bursor.com
`Attorneys for Plaintiff
`
`[Additional Counsel Listed on Signature Page]
`
`UNITED STATES DISTRICT COURT
`CENTRAL DISTRICT OF CALIFORNIA
`
`MIGUEL RODRIGUEZ, on behalf of
`himself and all others similarly situated,
`Plaintiff,
`
`v.
`JUST BRANDS USA, INC., JUST
`BRANDS FL, LLC, JUST BRANDS,
`INC., JUST CBD, LLC, and SSGI
`FINANCIAL SERVICES, INC.,
` Defendants.
`
`Case No.
`
`2:20-cv-4829
`
`CLASS ACTION COMPLAINT
`
`JURY TRIAL DEMANDED
`
`CLASS ACTION COMPLAINT
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 2 of 31 Page ID #:2
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Plaintiff Miguel Rodriguez brings this action on behalf of himself and all
`others similarly situated against Defendants Just Brands USA, Inc. (“Just Brands
`USA”), Just Brands FL, LLC (“Just Brands FL”), Just Brands, Inc. (“Just Brands”),
`Just CBD, LLC (“Just CBD”), and SSGI Financial Services, Inc. (“SSGI”)
`(collectively, “Defendants”), each of whom collectively does business as “JustCBD.”
`Plaintiff makes the following allegations pursuant to the investigation of his counsel
`and based upon information and belief, except as to the allegations specifically
`pertaining to himself, which are based on personal knowledge.
`NATURE OF THE ACTION
`1.
`This is a putative class action lawsuit on behalf of purchasers of
`JustCBD-branded products against Defendants for manufacturing, distributing, and
`selling underfilled cannabidiol (“CBD”) products (collectively, the “CBD Products”
`or “Products,” as enumerated below). CBD is commonly used to treat anxiety,
`insomnia, depression, diabetes, PTSD, and chronic pain. CBD is sold in a variety of
`forms, including compounds, tinctures, and edibles. CBD can be administered by
`inhalation of smoke or vapor. Alternatively, food and beverage items can be infused
`with CBD as an alternative means of ingesting the substance.
`2.
`Defendants’ labeling and packaging repeatedly overstate the quantity of
`CBD contained in their Products. As discussed below, the labeling and packaging of
`the CBD Products are replete with representations and warranties, namely that the
`Products purportedly contain specific amounts of CBD (the “CBD Claims”).1
`However, the CBD Products contain only a fraction of the CBD advertised on
`Defendants’ website and on the Products’ labeling and packaging. In fact, some of
`Defendants’ Products contain no CBD whatsoever. For example, pursuant to
`
`
`1 Specifically, the CBD Claims include the following: “25mg CBD,” “50mg CBD,”
`“65mg CBD,” “100mg CBD,” “200mg CBD,” “250mg CBD,” “360mg CBD,”
`“500mg CBD,” “550mg CBD,” “750mg CBD,” “1000mg CBD,” “1500mg CBD,”
`and “3000mg CBD.”
`
`CLASS ACTION COMPLAINT
`
`
`
`
`1
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 3 of 31 Page ID #:3
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`independent lab testing commissioned by Plaintiff’s counsel, the “JustCBD Honey
`Liquid Tincture,” which purports to contain “100mg CBD” in the bottle, actually
`contains just 48.92mg CBD per bottle. This represents an underfill of approximately
`51%. As another example, the “JustCBD Apple Rings Gummies,” which
`purportedly contains “250mg CBD,” in fact contains a non-detectable quantity of
`CBD. 2 This represents an underfill of 100%. By misrepresenting the true quantity
`of CBD in their CBD Products, Defendants are able to charge a substantial price
`premium on account of these fictitious CBD quantity claims.
`3.
`Defendants’ multiple and prominent systematic mislabeling of the
`Products form a pattern of unlawful and unfair business practices that harms the public.
`4.
`For all the reasons set forth herein, including but not limited to
`Defendants’ misrepresentations regarding the quantity of CBD in its products,
`Plaintiff seeks relief in this action individually, and as a class action on behalf of
`similarly situated purchasers of Defendants’ products, for: (i) breach of express
`warranty; (ii) unjust enrichment; (iii) fraud; (iv) violation of California’s Consumers
`Legal Remedies Act, Cal. Civ. Code §§ 1750 et seq. (“CLRA”); (v) violation of
`California’s Unfair Competition Law, Cal. Bus. & Prof. Code §§ 17200 et seq.
`(“UCL”); (vi) violation of California’s False Advertising Law, Cal. Bus. & Prof.
`Code §§ 17500 et seq. (“FAL”); and (vii) violation of the Florida Deceptive and
`Unfair Trade Practices Act, Fla. Stat. §§ 501.201, et seq. (“FDUTPA”).
`THE PARTIES
`5.
`Plaintiff Miguel Rodriguez is a citizen of California who resides in Van
`Nuys, California. On October 2, 2018, Plaintiff Rodriguez purchased “JustCBD
`Signature CBD Cartridges” in the Pineapple Express and Northern Lights flavors.
`On March 17, 2019, Plaintiff Rodriguez purchased “JustCBD CBD Gummies
`1000mg” and “JustPets Dog Treats.”
`
`
`2 AL screens CBD at a limit of detection of 0.4mg/g.
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 2
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 4 of 31 Page ID #:4
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`6.
`On both occasions, Plaintiff Rodriguez purchased his JustCBD products
`from Defendants’ website justcbdstore.com. Before purchasing his JustCBD-
`branded products, Plaintiff Rodriguez reviewed product information and images,
`including the CBD Claim featured on the product packaging, which promised
`specific quantities of CBD. When purchasing his CBD Products, Plaintiff Rodriguez
`also reviewed the accompanying labels, disclosures, warranties, and marketing
`materials, and understood them as representations and warranties by Defendants that
`the Products contained the quantities of CBD advertised. Plaintiff Rodriguez relied
`on these representations and warranties in deciding to purchase Defendants’ CBD
`Products over comparable products. Accordingly, these representations and
`warranties were part of the basis of the bargain, in that he would not have purchased
`the CBD Products on the same terms had he known these representations were not
`true. However, Plaintiff Rodriguez may purchase the CBD products in the future
`under the reasonable belief that the CBD Claims have been corrected. In making his
`purchases, Plaintiff Rodriguez paid a substantial price premium due to the false and
`misleading CBD Claims. However, Plaintiff Rodriguez did not receive the benefit of
`his bargain, because Defendants’ CBD Products do not contain anywhere near the
`quantities of CBD advertised. Plaintiff Rodriguez also understood that in making the
`sale, his retailer was acting with the knowledge and approval of Defendants and/or as
`the agent of Defendants. Plaintiff Rodriguez further understood that each purchase
`involved a direct transaction between himself and Defendants, because the CBD
`Products came with packaging and other materials prepared by Defendants,
`including representations and warranties regarding the CBD Claims.
`7.
`Defendant Just Brands USA, Inc. (“Just Brands USA”), is a Florida
`corporation with its principal place of business in Coral Springs, Florida. Just
`Brands USA manufactures, sells, and/or globally distributes JustCBD-branded
`products, and is responsible for the advertising, marketing, and packaging of CBD-
`infused edibles, oils, tinctures, creams, and vapes, including the CBD Products. Just
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 3
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 5 of 31 Page ID #:5
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Brands USA manufactured, marketed, and/or sold the CBD Products during the
`relevant class period. The planning and execution of the advertising, marketing,
`labeling, packaging, testing, and/or corporate operations concerning the CBD
`Products and the CBD Claims was primarily carried out at Just Brands USA’s
`headquarters and facilities within Florida, as is most, or all, of the CBD Products’
`manufacturing and assembly.
`8.
`Defendant Just Brands FL, LLC (“Just Brands FL”), is a Florida
`corporation with its principal place of business in Coral Springs, Florida. Just
`Brands FL manufactures, sells, and/or globally distributes JustCBD-branded
`products, and is responsible for the advertising, marketing, and packaging of CBD-
`infused edibles, oils, tinctures, creams, and vapes, including the CBD Products. Just
`Brands FL manufactured, marketed, and/or sold the CBD Products during the
`relevant class period. The planning and execution of the advertising, marketing,
`labeling, packaging, testing, and/or corporate operations concerning the CBD
`Products and the CBD Claims was primarily carried out at Just Brands FL’s
`headquarters and facilities within Florida, as is most, or all, of the CBD Products’
`manufacturing and assembly.
`9.
`Defendant Just Brands, Inc. (“Just Brands”), is a Florida corporation
`with its principal place of business in Hollywood, Florida. Just Brands
`manufactures, sells, wholesales, and/or globally distributes JustCBD-branded
`products, and is responsible for the advertising, marketing, and packaging of CBD-
`infused edibles, oils, tinctures, creams, and vapes, including the CBD Products. Just
`Brands manufactured, marketed, and/or sold the CBD Products during the relevant
`class period. The planning and execution of the advertising, marketing, labeling,
`packaging, testing, and/or corporate operations concerning the CBD Products and the
`CBD Claims was primarily carried out at Just Brands headquarters and facilities
`within Florida, as is most, or all, of the CBD Products’ manufacturing and assembly.
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 4
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 6 of 31 Page ID #:6
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`10. Defendant Just CBD, LLC (“Just CBD”), is a Florida corporation with
`its principal place of business in Hollywood, Florida. Just CBD manufactures, sells,
`wholesales, and/or globally distributes JustCBD-branded products, and is responsible
`for the advertising, marketing, and packaging of CBD-infused edibles, oils, tinctures,
`creams, and vapes, including the CBD Products. Just CBD manufactured, marketed,
`and/or sold the CBD Products during the relevant class period. The planning and
`execution of the advertising, marketing, labeling, packaging, testing, and/or
`corporate operations concerning the CBD Products and the CBD Claims was
`primarily carried out at Just CBD headquarters and facilities within Florida, as is
`most, or all, of the CBD Products’ manufacturing and assembly.
`11. Defendant SSGI Financial Services, Inc., is a Florida corporation with
`its principal place of business in Coral Springs, Florida. SSGI manufactures, sells,
`and/or globally distributes JustCBD-branded products, and is responsible for the
`advertising, marketing, and packaging of CBD-infused edibles, oils, tinctures,
`creams, and vapes, including the CBD Products. SSGI manufactured, marketed, and
`sold the CBD Products during the relevant class period. The planning and execution
`of the advertising, marketing, labeling, packaging, testing, and/or corporate
`operations concerning the CBD Products and the CBD Claims was primarily carried
`out at SSGI’s headquarters and facilities within Florida, as is most, or all, of the
`CBD Products’ manufacturing and assembly.
`12. Based on information and belief, SSGI dominates and controls all
`aspects of Defendants’ operations. For example, the online retail site operated by
`Defendants, www.justcbdstore.com, references “SSGI Financial Services” and JUST
`CBD “DBA Just Brands USA.” Additionally, SSGI’s principal address is registered
`with the Florida Secretary of State in Coral Springs, Florida, which is the same town
`as both Just Brands USA and Just Brands FL. SSGI and Just Brands FL both list
`Stephen Iacona under “Officer/Director,” and Just Brands USA lists “SSGI Financial
`Services” under “Officer/Director.” Since each Defendant acted jointly to perpetrate
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 5
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 7 of 31 Page ID #:7
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`the acts described herein, they are thus subject to joint and several liability. At all
`times relevant to the allegations in this matter, each Defendant acted in concert with,
`with the knowledge and approval of, and/or as the agent of the other Defendants
`within the course and scope of the agency, regarding the acts and omissions alleged.
`13. Plaintiff reserves the right to amend this Complaint to add different or
`additional defendants, including without limitation any officer, director, employee,
`supplier, or distributor of Defendants who has knowingly and willfully aided,
`abetted, or conspired in the false and deceptive conduct alleged herein.
`JURISDICTION AND VENUE
`14. This Court has jurisdiction over this action pursuant to 28 U.S.C. §
`1332(d) because there are more than 100 class members and the aggregate amount in
`controversy exceeds $5,000,000.00, exclusive of interest, fees, and costs, and at least
`one class member is a citizen of a state different from Defendants.
`15. Pursuant to 28 U.S.C. § 1391, this Court is the proper venue for this
`action because a substantial part of the events, omissions, and acts giving rise to the
`claims herein occurred in this District. Plaintiff Rodriguez is a citizen of California,
`resides in this District, and purchased JustCBD-branded products from Defendants in
`this District. Moreover, Defendants distributed, advertised, and sold JustCBD-
`branded products, which are the subject of the present complaint, in this District
`FACTS COMMON TO ALL CLAIMS
`A. General Explanation Of CBD Products
`16. CBD is a highly sought-after additive with purported medicinal
`properties. CBD is used to treat anxiety, insomnia, depression, diabetes, PTSD, and
`chronic pain. CBD can be taken into the body in multiple ways, including by
`inhalation of smoke or vapor, as an aerosol spray into the cheek, and by mouth.
`Food and beverage items can be infused with CBD as an alternative means of
`ingesting the substance.
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 6
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 8 of 31 Page ID #:8
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`17. CBD, which stands for cannabidiol, is a naturally occurring
`phytocannabinoid found in certain strains of hemp. Food and beverage products
`containing CBD were introduced in the United States in 2017. Hemp seed
`ingredients that contain trace amounts of THC during harvesting (less than 0.3%)
`have been declared by the United States Food and Drug Administration (“FDA”) to
`be generally recognized as safe (“GRAS”).
`18. The production, sale, and distribution of CBD is a booming industry
`that is “gaining in popularity among consumers with the legal CBD market projected
`to surpass $23 billion in annual U.S. sales by 2023,” according to Forbes.3 With
`large retailers like CVS, Walgreens, and Kroger having entered the market, the CBD
`industry is undergoing rapid growth. Yet, given that the “industry has little to no
`regulation with no one watching what’s going into the product[,]” this rapid
`expansion has produced negative consequences for consumers.4 For instance, after
`commissioning lab testing for “35 CBD products from seven different companies[,]”
`NBC investigators discovered that “20 of [the 35 samples tested] had less than half
`of the amount of CBD advertised on the label” and “[s]ome samples had no CBD at
`all.”
`
`B. Defendants’ CBD Products Prominently Feature The CBD Claims
`19. The CBD Products at issue include the following products from
`Defendants, all of which prominently feature the amount of CBD (e.g. 250mg) on
`the front label:
`
`A. All “CBD Gummies” labeled with CBD Claims, including all
`flavors and sizes of: “JustCBD Gummies,”5 “JustCBD Sugar
`
`3 https://www.forbes.com/sites/brucejapsen/2019/07/11/cvs-walgreens-to-lead-23-
`billion-cbd-market-by-2023/#47aa4d2252ca (accessed 05/18/20).
`4 https://www.nbcmiami.com/investigations/505335101.html (accessed 05/18/20).
`5 “JustCBD Gummies” come in a range of flavors, including “Sour Bear,” “Apple
`Rings,” “Happy Face,” “Worms,” “Rainbow Ribbons,” “Sour Worms,” “Peach
`Ring,” “Gummy Cherries,” “Blueberry Rings,” and “Watermelon Rings.”
`Additionally, each flavor is available in different size jars from 250mg, 500mg,
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 7
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 9 of 31 Page ID #:9
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Free Gummies,”6 and “JustCBD Jet Setter Orange Berry Blast
`Immune Support Gummies;”7
`
`
`
`
`
`
`
`
`
`
`B. All “CBD Edibles” labeled with CBD Claims, including all
`flavors and sizes of “JustCBD Dried Fruit;”8
`
`
`
`
`
`
`
`750mg, 1000mg, 3000mg jars. See https://www.justcbdstore.com/product-
`category/cbd-gummies/ (accessed 05/18/2020).
`6 “JustCBD Sugar Free Gummies” come in different sizes, including jars purporting
`to contain “250mg CBD,” “500mg CBD,” “750mg CBD,” “1000mg CBD,” and
`“3000mg CBD” See https://www.justcbdstore.com/product/sugar-free-cbd-
`gummies/ (accessed 05/18/2020).
`7 “JustCBD Jet Setter Orange Berry Blast Immune Support Gummies” products
`purport to contain “300mg” per jar.
`8 “JustCBD Dried Fruit” Products come in a range of flavors, including “Apricots,”
`“Apple Slices,” “Pineapple Chunks,” “Papaya Chunks,” “Kiwi Chunks,” and
`“Mango.” Each flavor is available in different sizes, including jars purporting to
`contain “250mg CBD,” “500mg CBD,” “750mg CBD,” “1000mg CBD,” and
`“3000mg CBD.” See https://www.justcbdstore.com/product-category/cbd-dried-
`fruit/ (accessed 05/18/2020).
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 8
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 10 of 31 Page ID #:10
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`C. All “CBD Honey, Oil, and Isolate” Products labeled with CBD
`Claims, including all sizes of: “JustCBD Coconut Oil,”9
`“JustCBD Honey Sticks,”10 and “JustCBD Isolate;”11
`
`
`
`
`
`
`
`
`
`
`
`D. All “JustCBD Tincture” Products labeled with CBD Claims,
`including all flavors and sizes of: “JustCBD Full Spectrum
`Tincture,”12 “JustCBD Oil Tincture,”13 and “JustCBD Daily Dose
`Oil Tincture;”14 and
`
`9 “JustCBD Coconut Oil” purports to contain “360mg CBD.” See
`https://www.justcbdstore.com/product/coconut-oil-tincture-2/ (accessed 05/18/2020).
`10 “JustCBD Honey Sticks” purport to contain “10mg CBD per stick” and can be
`purchased in two sizes: a “10-pack” jar and a “100-pack” jar. See
`https://www.justcbdstore.com/product/cbd-honey-sticks/;
`https://www.justcbdstore.com/product/honey-sticks-jar-10-pack/ (accessed
`05/18/2020).
`11 “JustCBD Isolate,” which Defendants advertise as “a pure isolate powder
`containing 99% CBD, our highest concentration CBD product available,” comes in a
`1-gram package with 1000mg of CBD.” See https://www.justcbdstore.com/product-
`category/cbd-isolate/ (accessed 08/09/2019).
`12 “JustCBD Full Spectrum Tincture” Products come in a range of sizes, including
`bottles purporting to contain “50mg CBD,” “100mg CBD,” “250mg CBD,” “550mg
`CBD,” “1000mg CBD,” and “1500mg CBD.” See
`https://www.justcbdstore.com/product/full-spectrum-tincture/ (accessed 05/18/2020).
`13 “JustCBD Oil Tincture” Products come in a range of flavors, including “Coconut
`Oil,” “Hemp Seed Oil,” and “Liquid Honey.” Each flavor is available in different
`sizes, including bottles purporting to contain “50mg CBD,” “100mg CBD,” “250mg
`CBD,” “550mg CBD,” “1000mg CBD,” or “1500mg CBD.” See
`https://www.justcbdstore.com/product-category/cbd-tincture/ (accessed 05/18/2020).
`14 “JustCBD Daily Dose Oil Tincture” products come in multiple flavors, including
`“Coconut Oil,” and “Hemp Seed Oil.” Each flavor purports to contain
`“[a]pproximately 65mg of CBD.” See https://www.justcbdstore.com/product/daily-
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 9
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 11 of 31 Page ID #:11
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`
`
`E. All “JustCBD Vape” Products labeled with CBD Claims,
`including all flavors of: “JustCBD Vape Cartridges,”15 “JustCBD
`Signature Series Cartridges,”16 and “JustCBD Vape Juice.”17
`
`
`
`
`
`
`
`
`
`
`
`
`
`dose-mct-coconut-oil/; https://www.justcbdstore.com/product/daily-dose-hemp-seed-
`oil/ (accessed 05/18/2020).
`15 “JustCBD Vape Cartridges” come in a range of flavors, including “Strawberry,”
`“Blueberry,” “Mango,” and “Honey.” Each flavor purports to contain “200mg
`CBD.” See https://www.justcbdstore.com/product-category/cbd-vape-cartridges/
`(accessed 05/18/2020).
`16 “JustCBD Signature Series Cartridges” come in a range of flavors, including
`“Pineapple Express,” “Northern Lights,” and “Sour Diesel.” Each flavor purports to
`contain “200mg CBD.” See https://www.justcbdstore.com/product-category/cbd-
`vape-cartridges/ (accessed 05/18/2020).
`17 “JustCBD Vape Juice” Products come a range of flavors, including “Blue Dream,”
`“Blue Razz,” “Cinnamon Sugar Cookies,” “Cookies,” “Mango Ice,” “Watermelon
`OG,” “Pina Colada,” “Strawberry Cheesecake,” and “Pineapple Express.” Each
`flavor comes in “60mL bottles” purporting to contain 100mg” of CBD, 250mg of
`CBD, 500mg of CBD, 1000mg of CBD, or 1500mg of CBD. See
`https://www.justcbdstore.com/product-category/cbd-vape-oil/ (accessed 05/18/2020).
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 10
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 12 of 31 Page ID #:12
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`C. Defendants’ CBD Products Contain Less CBD Than Promised
`20. Defendants purport to take honesty and transparency seriously. As
`depicted below, Defendants state on their website: “Looking around we found that
`the CBD business was consistently misrepresented and being taken advantage of. At
`JustCBD™ we believe that you have the right to know exactly what is inside your
`CBD products. It is our mission and promises to never misrepresent the content of
`our products. With the help of world-class labs to test our products, we are confident
`that JustCBD™ is made with industry-leading quality, honesty, and love.”18
`
`
`
`21. As manufacturers, suppliers, wholesalers, distributors, and/or retailers,
`Defendants tested, or should have tested, their products prior to sale. As such,
`Defendants know or should have known that the CBD claims are false and misleading.
`22. Defendants’ CBD Claims are false and misleading. As independent lab
`testing reveals, the true quantity of CBD in the CBD Products is only a small fraction
`of Defendants’ representations. Plaintiff’s counsel commissioned testing of
`Defendants’ products, which show that the Products do not contain the amount of
`CBD promised in the CBD Claims. For example, Defendants’ “JustCBD Liquid
`Honey Tincture” product, which is labeled as containing “100mg CBD,” actually
`
`18 https://www.justcbdstore.com/about-us/ (accessed 05/18/2020).
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 11
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 13 of 31 Page ID #:13
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`contains a total of 48.92mg. This is an underfill of 51.08%. As another example, a
`June 4, 2019 lab test failed to detect any CBD in Defendants’ “JustCBD Apple Rings
`Gummies” product, which is labeled as containing “250mg CBD” per jar. This is an
`underfill of 100%.
`
`
`CBD Product
`JustCBD Liquid Honey
`Tincture
`JustCBD Apple Rings
`Gummies
`JustCBD PureFlavor Honey
`JustCBD Strawberry Vape Oil
`JustCBD Dried Fruit Apple
`Slices
`JustCBD Dried Fruit Papaya
`Chunks
`JustCBD Dried Fruit Kiwi
`Chunks
`JustCBD Emoji Gummies
`Just Pets Dog Treats
`JustCBD Peach Rings
`Gummies
`JustCBD Gummy Worms
`JustCBD Freeze Roll-On Pain
`Relief
`JustCBD Hemp Seed Oil
`JustCBD MCT Coconut Oil
`JustCBD Gummy Ribbons
`
`CBD
`Claim
`100mg
`
`250mg
`
`100mg
`200mg
`
`1000mg
`
`500mg
`
`250mg
`
`250mg
`100mg
`
`500mg
`
`1000mg
`
`350mg
`
`2000mg
`2000mg
`750mg
`
`Actual CBD
`Content
`48.92mg
`
`0mg
`
`0.87mg
`15.7 mg
`
`12.7mg
`
`35.7mg
`
`11.8mg
`
`7.5mg
`5mg
`
`13mg
`
`16mg
`
`280mg
`
`1810mg
`1800mg
`656.25mg
`
`% Difference
`
`-51.08%
`
`-100%
`
`-89.6%
`-92.15%
`
`-98.73%
`
`-92.86%
`
`-95.28%
`
`-97%
`-95%
`
`-97.4%
`
`-98.4%
`
`-20%
`
`-10%
`-10%
`-12.5%
`
`
`
`23. By permanently marking the CBD Products with their purported CBD
`content, Defendants knew that the CBD Claims are false and misleading, yet still
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 12
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 14 of 31 Page ID #:14
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`advertised, labeled, and packaged the CBD Products with the false and misleading
`CBD Claims.
`24. Simply put, Defendants’ CBD Claims are a farce. Defendants
`knowingly prepared the material on their website and product labels to misrepresent
`the true quantity of CBD in the CBD Products.
`25. Plaintiff and Class Members would not have purchased the Products or
`would have paid less for the Products if they were aware of the misleading labeling
`of the Products by Defendants.
`26. Defendants intended for Plaintiff and the Class members to be deceived
`or misled.
`27. Defendants’ deceptive and misleading practices proximately caused
`harm to the Plaintiff and the Class.
`28. Plaintiff and Class members would not have purchased the Products, or
`would have not paid as much for the Products, had they known the truth about the
`mislabeled and falsely advertised Products
`CLASS ACTION ALLEGATIONS
`29. Pursuant to Fed. R. Civ. P. 23, Plaintiff seeks to represent a class
`defined as all persons in the United States who purchased CBD Products with a CBD
`Claim from Defendants (the “Class”). Excluded from the Class are Defendants Just
`Brands USA, Inc., Just Brands FL, LLC, Just Brands, Inc., and SSGI Financial
`Services, Inc., Defendants’ subsidiaries, affiliates, officers, directors, assigns and
`successors, and any entity in which it has a controlling interest, and the Judge to
`whom this case is assigned and any member of his or her immediate family.
`30. Plaintiff also seeks to represent a subclass defined as all Class members
`in California (the “California Subclass” or “Subclass”).
`31. Members of the Class are so numerous that their individual joinder
`herein is impracticable. On information and belief, members of the Class number in
`the hundreds of thousands. The precise number of Class members and their
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 13
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 15 of 31 Page ID #:15
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`identities are unknown to Plaintiff at this time but will be determined through
`discovery. Class members may be notified of the pendency of this action by mail
`and/or publication through the distribution records of Defendants and third-party
`retailers and vendors.
`32. Common questions of law and fact exist as to all Class members and
`predominate over questions affecting only individual Class members. Common legal
`and factual questions include, but are not limited to:
`(a) whether the CBD Claims on Defendants’ CBD Products are false
`and misleading;
`(b)
`the actual amount of CBD in the CBD Products;
`(c) whether Defendants engaged in false and/or deceptive
`
`advertising;
`
`conduct;
`
`(d) whether Defendants have been unjustly enriched by their
`
`(e) whether Class members have sustained monetary loss and the
`proper remedy for and measure of that loss;
`(f) whether Plaintiff and Class members are entitled to declaratory
`and injunctive relief;
`(g)
`the number of CBD Products sold to consumers; and
`(h) whether, as a result of Defendants’ misconduct as alleged herein,
`Plaintiff and Class members are entitled to restitution, injunctive, and/or monetary
`relief and, if so, the amount and nature of such relief.
`33. Plaintiff’s claims are typical of the claims of Class members because
`Plaintiff purchased a CBD Product in reliance on the representations and warranties
`described above, and suffered a loss as a result of those purchases.
`34. Plaintiff is an adequate representative of the Class because his interests
`do not conflict with the interests of the Class members he seeks to represent, he has
`retained counsel competent and experienced in prosecuting class actions, and he
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 14
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 16 of 31 Page ID #:16
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`intends to prosecute this action vigorously. The interests of Class members will be
`fairly and adequately protected by Plaintiff and his counsel.
`35. The class mechanism is superior to other available means for the fair
`and efficient adjudication of the claims of Plaintiff and the Class members. Each
`individual Class member may lack the resources to undergo the burden and expense
`of individual prosecution of the complex and extensive litigation necessary to
`establish Defendants’ liability. Individualized litigation increases the delay and
`expense to all parties and multiplies the burden on the judicial system presented by
`the complex legal and factual issues of this case. Individualized litigation also
`presents a potential for inconsistent or contradictory judgments. In contrast, the class
`action device presents far fewer management difficulties and provides the benefits of
`single adjudication, economy of scale, and comprehensive supervision by a single
`court on the issue of Defendants’ liability. Class treatment of the liability issues will
`ensure that all claims and claimants are before this Court for consistent adjudication
`of the liability issues.
`
`COUNT I
`(Breach Of Express Warranty)
`36. Plaintiff hereby incorporates by reference the allegations contained in
`all preceding paragraphs of this complaint.
`37. Plaintiff brings this claim individually and on behalf of the members of
`the proposed Class and the Subclass against Defendants.
`38.
`In connection with the sale of the CBD Products, Defendants issued
`written warranties. Defendants, as the designers, manufacturers, marketers,
`distributors, and/or sellers of the CBD Products, expressly warranted that the
`Products were fit for their intended purpose by making promises and affirmations of
`fact on their Products’ labeling and packaging, including the CBD Claims.
`39. The affirmations of fact and promises made by Defendants to Plaintiff
`and the Class regarding the CBD Products became part of the basis of the bargain
`
`CLASS ACTION COMPLAINT
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 15
`
`

`

`Case 2:20-cv-04829-ODW-PLA Document 1 Filed 05/29/20 Page 17 of 31 Page ID #:17
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`between Defendants and Plaintiff and the Class and Subclass, thereby creating an
`express warranty that the CBD Products would co