Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 1 of 53 Page ID #:1
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`HUESTON HENNIGAN LLP
`John C. Hueston, State Bar No. 164921
`jhueston@hueston.com
`Moez M. Kaba, State Bar No. 257456
`mkaba@hueston.com
`Michael H. Todisco, State Bar No. 315814
`mtodisco@hueston.com
`523 West 6th Street, Suite 400
`Los Angeles, CA 90014
`Telephone: (213) 788-4340
`Facsimile:
`(888) 775-0898
`
`Attorneys for Plaintiff DON LEE FARMS,
`a division of Goodman Food Products, Inc.
`
`UNITED STATES DISTRICT COURT
`CENTRAL DISTRICT OF CALIFORNIA
`
`DON LEE FARMS, a division of
`Goodman Food Products, Inc.,
`
`Plaintiff,
`
`vs.
`
`BEYOND MEAT, INC., a Delaware
`Corporation,; and ETHAN BROWN, an
`individual,
`
`Defendants.
`
`Case No.
`
`2:22-cv-3751
`
`PLAINTIFF DON LEE FARMS’
`COMPLAINT FOR:
`1. VIOLATION OF THE LANHAM
`ACT;
`2. FALSE ADVERTISING IN
`VIOLATION OF CAL. BUS. & PROF.
`CODE §§ 17500 ET SEQ; and
`3. UNFAIR COMPETITION IN
`VIOLATION OF CAL. BUS. & PROF.
`CODE §§ 17200 ET SEQ.
`DEMAND FOR JURY TRIAL
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 2 of 53 Page ID #:2
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`Plaintiff Don Lee Farms (“DLF”) brings this action against Defendants
`
`Beyond Meat, Inc. (“Beyond Meat” or “Beyond”) and Ethan Brown (“Brown”).
`DLF alleges as follows:
`
`NATURE OF THE CASE
`1.
`“Something is really wrong at Beyond Meat.”1
`2.
`Beyond Meat’s problems are many, but they trace to one root cause: the
`company’s tendency to “over-promise and under-deliver,” then scramble for
`excuses.2 With the company reeling due to operational failures, CEO Ethan Brown
`has offered up “excuses” described as “laughable” and that industry insiders pan as
`“difficult to take . . . seriously” and as flunking “the smell test.”3 Others have
`noticed Brown’s habit of “point[ing] the finger” at everyone but himself, describing
`Brown as having “an appetite for excuses.”4
`3.
`But there are no excuses for the conduct revealed below. The
`indisputable science now shows that Beyond Meat was built on and has grown
`because of deception and lies: (1) that Beyond’s plant-based products provide “equal
`
`
`1 Sergei Klebnikov, FORBES, ‘Something Is Really Wrong’ At Beyond Meat,
`According To This Investor (Oct. 22, 2021) (internal quotation marks omitted).
`2 Deena Shanker, BLOOMBERG, Beyond Meat’s Delayed Chicken Launch Raises
`Growth Questions (Nov. 17, 2021).
`3 Joe Berkowitz, FAST COMPANY, Some of Beyond Meat’s excuses for its stock
`troubles are laughable (Nov. 11, 2021).
`4 David Moadel, MOTLEY FOOL, Beyond Meat Needs to Deliver, Not Just Explain
`(Mar. 9, 2022).
`
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 3 of 53 Page ID #:3
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`or superior protein” as compared to real meat;5 and (2) that its products are free from
`
`“synthetic” ingredients.6
`4.
`Both of these claims are central to Beyond’s pitch to customers,
`business partners, retailers, and investors—and both claims are demonstrably false.
`First, Beyond Meat grossly overstates the protein in its products. To
`5.
`entice customers, Beyond Meat claims its proteins are equal to or better than the
`proteins found in meat7 and labels its products with correspondingly high daily
`protein values. But as revealed by rigorous product testing of Beyond Meat’s
`products, Beyond Meat’s claims are false. Using the globally recognized “corrected”
`protein-testing method—which accounts for the quality (or lack of quality) of the
`protein in a product—the daily protein value on Beyond Meat’s flagship products is
`overstated by up to 30%:
`
`Table 1
`BYND Product %DV (as labelled) %DV (as tested)
`Beefy Crumbles
`26%
`20.0%
`Beyond Burger
`40%
`35.49%
`
`Overstated%
`30%
`12.71%
`
`
`
`6.
`Unlike Beyond Meat’s unsupported marketing claims, the above testing
`results are backed by hard science and data. Indeed, the testing attached to this
`complaint was conducted by an internationally accredited laboratory that followed
`
`
`5 Beyond Meat, Is Meat Production An Efficient Use of Resources? (Mar. 8, 2021),
`https://www.beyondmeat.com/en-US/whats-new/is-meat-production-an-efficient-
`use-of-resources.
`6 Anna Starostinetskaya, VEGNEWS, Octavia Spencer Stars in Beyond Meat’s First
`Television Commercial (Aug. 3, 2020), https://vegnews.com/2020/8/octavia-spencer-
`stars-in-beyond-meat-s-first-television-commercial.
`7 E.g., Beyond Meat, Is Meat Production An Efficient Use of Resources? (Mar. 8,
`2021), https://www.beyondmeat.com/en-US/whats-new/is-meat-production-an-
`efficient-use-of-resources.
`
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 4 of 53 Page ID #:4
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`rigorous testing methods. (Element Laboratory Analytical Report, May 12, 2022
`
`(hereinafter “Element Report”) (attached as Exhibit A).)
`7.
`The upshot: Beyond Meat has falsely advertised its products and has
`caused misbranded goods to be sold throughout the supply chain. The misbranded
`goods tested for purposes of this complaint were purchased from well-known
`retailers nationwide, including Walmart, Publix, Albertsons, Safeway, and Ralphs.
`8.
`Beyond Meat’s overstatement of its protein is material. Beyond Meat’s
`website makes representations that its products “offer protein levels greater than or
`equal to their animal-based counterparts.”8 Further, Beyond Meat points to
`“protein” as the defining characteristic of the company and its products. Beyond
`Meat purports to be “the global protein company of the future.”9 It describes its
`products as “plant-based protein” and “alternative protein” options.10 It even
`trademarked the phrase “The Future of Protein.”11 And Beyond Meat’s S-1
`registration statement—where it disclosed all essential information about the
`
`
`8 Beyond Meat, Frequently Asked Questions (last visited June 1, 2022),
`https://www.beyondmeat.com/en-US/faqs (emphasis added).
`9 Beyond Meat, Beyond Meat Appoints Protein Industry Veterans to Top Executive
`Roles as the Company Accelerates its Global Growth Strategy (Dec. 8, 2021),
`https://investors.beyondmeat.com/news-releases/news-release-details/beyond-meat-
`appoints-protein-industry-veterans-top-executive/ (emphasis added).
`10 Beyond Meat, This Summer, The Economist Promotes Environmental Awareness
`With Free Beyond Burgers in NYC (June 14, 2017),
`https://www.beyondmeat.com/en-US/whats-new/this-summer-the-economist-
`promotes-environmental-awareness-with-free-beyond-burgers-in-nyc (emphasis
`added).
`11 Beyond Meat, Registration Statement (Form S-1) at 9 and 98 (Amend, 6, Apr. 30,
`2019) (emphasis added).
`
`
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 5 of 53 Page ID #:5
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`company to investors and the SEC—uses the term “protein” 126 times.12 After all,
`
`without protein, Beyond’s “plant-based proteins” are just plants.
`9.
`Second, while Beyond Meat distinguishes its products as being made
`without “synthetic” ingredients,13 in truth, Beyond Meat’s Beyond Burgers contain
`“methylcellulose” – a synthetic ingredient that is commonly used as a laxative, a
`filler in cosmetic products, or as a binding agent in hotdogs.14 The scientific
`literature recognizes that methylcellulose “does not occur naturally and is
`synthetically produced by heating cellulose with caustic solution . . . and treating it
`with methyl chloride.”15 Yet despite the methylcellulose in their products,
`Defendants have flooded the market with promises that their products contain no
`“synthetic”16 ingredients and are made “directly from plants.”17
`10. As with Beyond’s false protein claims, this deception about the lack of
`“synthetic” or “artificial” ingredients in their products strikes at the heart of
`Defendants’ value proposition to customers, investors, and business partners. In
`
`
`12 Id. See e.g., id. at 2 and 82 (“the protein-packed satisfaction of biting into a
`‘meaty’ burger or sausage”); id. at 82 (“[W]e requested that the product be sold in
`the meat case at grocery retailers where meat-loving consumers are accustomed to
`shopping for center-of-plate proteins.”)
`13 Starostinetskaya, supra note 6.
`14 WebMD, Methylcellulose (Laxative) Oral Powder – Uses Side Effects, and More
`(last visited May 20, 2022), https://www.webmd.com/drugs/2/drug-
`6391/methylcellulose-laxative-oral/details; SpecialChem, Methylcellulose (last
`visited May 20, 2022), https://cosmetics.specialchem.com/inci-
`ingredients/methylcellulose.
`15 Devabaktuni Lavany et al., Sources of Cellulose and Their Applications – A
`Review, 2 INTERNATIONAL JOURNAL OF DRUG FORMULATION AND RESEARCH 19, 30
`(2011) (emphasis added).
`16 Starostinetskaya, supra note 6.
`17 Beyond Meat, Frequently Asked Questions (last visited May 24, 2022),
`https://www.beyondmeat.com/en-US/faqs.
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 6 of 53 Page ID #:6
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`Brown’s own words, Beyond’s purported “commitment to all natural” is at the very
`
`“core of [their] company.”18
`11. These false claims not only appear in Beyond’s advertising and
`corporate statements but have been widely spread by Defendant Ethan Brown
`himself. Brown is not just Beyond’s “outward face.”19 He’s also a “convincing
`evangelist” for the company,20 gobbling up media appearances to sermonize about
`Beyond’s promise of being “tomorrow’s global protein company”21 and to emphasize
`that the company’s products contain “no artificial ingredients.”22
`12. This is not the first time Brown has been called out for being less than
`truthful. Company insiders have described Brown’s constant finger-pointing as
`having led Beyond to “develop[] an internal culture of blame.”23 Others have noted
`that while Brown may have had the mettle to run a small startup (where truth can be
`
`
`18 Beyond Meat, Beyond Meat Opens Doors of New State-of-the-Art Innovation
`Center in Los Angeles, Expanding Research Footprint and Fueling Progress Toward
`a Perfect Build of Meat Directly from Plants (July 19, 2018),
`https://investors.beyondmeat.com/news-releases/news-release-details/beyond-meat-
`opens-doors-new-state-art-innovation-center-los.
`19 Shanker, supra note 2.
`20 Jennifer Wells, THE TORONTO STAR, Beyond Meat’s push to save the planet comes
`at a price (July 31, 2019),
`https://www.thestar.com/business/opinion/2019/07/31/beyond-meats-push-to-save-
`the-planet-comes-at-a-price.html.
`21 Beyond Meat, Beyond Meat Announces New General Manager to Spearhead
`Growth in Europe (Dec. 16, 2021), https://www.beyondmeat.com/en-
`US/press/beyond-meat-announces-new-general-manager-to-spearhead-growth-in-
`europe.
`22 Jim Cramer, CNBC, Beyond Meat’s CEO reacts to beef and pork shortages, talks
`‘real opportunity’ this summer (May 6, 2020),
`https://www.cnbc.com/2020/05/06/beyond-meat-ceo-looks-to-win-consumers-over-
`during-meat-shortage.html.
`23 Shanker, supra note 2.
`
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 7 of 53 Page ID #:7
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`a malleable concept), he “lacks the experience to run the day-to-day operations of a
`
`fast-growing public company” (where truth is mandated by the SEC).24
`13. Defendants’ misleading claims harm consumers, harm competitors, and
`harm fair competition. Plaintiff Don Lee Farms—a leading producer of plant-based
`and meat products—brings this action to restore competitive equilibrium: to stop
`Defendants from continuing to build their brand on deception, to recover damages
`caused by Defendants’ false advertising, and to disgorge Defendants of their ill-
`gotten profits.
`
`PARTIES
`14. Plaintiff DLF produces meat, vegetable, and plant-based products under
`its own label and also co-manufactures products for some of the world’s most
`recognized and successful food brands. DLF’s plant-based products include the
`Organic Plant-Based Burger, the Organic Chipotle Black Bean Burger, the Better
`Than Beef Burger, and the Organic Better Than Beef Crumbles. DLF is incorporated
`under the laws of California and is headquartered in Inglewood, California.
`15. Defendant Beyond Meat describes itself as “one of the fastest growing
`food companies in the United States, offering a portfolio of revolutionary plant-based
`meats.”25 Beyond is organized under Delaware law and headquartered in El
`Segundo, California.
`16. Defendant Ethan Brown is the CEO of Beyond Meat and “Beyond’s
`outward face.”26 He resides in Los Angeles County.
`JURISDICTION AND VENUE
`17. Subject matter jurisdiction is proper under 15 U.S.C. § 1121 and 28
`U.S.C. §§ 1331 and 1367.
`
`
`24 Id.
`25 Beyond Meat, Registration Statement (Form S-1) at 1, 56, and 81 (Amend. 6, Apr.
`30, 2019).
`26 See Shanker, supra note 2.
`
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 8 of 53 Page ID #:8
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`18. Personal jurisdiction is proper because Defendants are residents of
`
`California. Defendants also regularly and continuously transact business in
`California, including selling and falsely marketing products throughout the State.
`19. Venue is proper under 28 U.S.C. §§ 1391(b) and 1391(c) because
`Defendants reside in this district and market and falsely advertise their products here.
`FACTS
`20. Plaintiff DLF and Defendant Beyond Meat are competitors. Both
`companies produce plant-based meats; both companies jockey for placement in and
`contracts with many of the same business partners; and both companies vie for many
`of the same customers.
`21. But that is where the similarities end. The two companies’ histories,
`leadership, and corporate values could not be more different. Beyond Meat is
`Silicon-Valley flash; DLF is a multi-generation family business. Where DLF
`prioritizes substance, Beyond Meat prioritizes style.
`22. Chief among these differences is the “aggressive stance” that Beyond
`Meat is willing to take in the marketplace.27 From the beginning, as Brown admitted,
`the company’s polestar was simply “grabbing as much land as we can,” then figuring
`out the details once they’d beat competitors to store shelves.28
`23. To win the landgrab, Defendants needed to first differentiate themselves
`from competitors. They did so by emphasizing the two false claims described above.
`24. First, Defendants wanted their products to be viewed not just as souped-
`up veggie burgers, but as proteins that were equivalent to or better than traditional
`meats. Indeed, Defendants’ central strategy is to sell their products in the “meat
`section,” thus conditioning consumers “to re-imagine the meat section as the Protein
`
`
`
`27 Wells, supra note 20.
`28 Id.
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 9 of 53 Page ID #:9
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`Section of the store.”29 While Defendants have succeeded in executing this scheme,30
`
`their success was no foregone conclusion. Brown has admitted that “he spent
`months coaxing [retailers] into selling [Beyond’s] burgers in the meat section.”31
`Beyond’s S-1 describes the Beyond Burger as being sold “alongside its animal-based
`equivalents.”32 But as the testing attached to this complaint shows, Beyond Meat’s
`proteins do not measure up to its animal-based counterparts and, accordingly,
`Beyond Meat’s products are misbranded and falsely advertised.33
`25.
`Second, Defendants sought to stand out in the marketplace by claiming
`that their products were made with simple plant-based ingredients and without
`anything synthetic or artificial. Again, Defendants openly admit this fact. In a
`statement to CNBC, Beyond Meat boasted that it “distinguishes itself by offering
`products made with simple, plant-based ingredients – without . . . artificially
`produced ingredients.”34 But once more, the science disproves Beyond Meat’s
`
`
`29 Beyond Meat, Beyond Beef (last visited May 24, 2022),
`https://www.beyondmeat.com/en-CA/products/beyond-beef (emphasis added).
`30 See, e.g., Beyond Meat, The Beyond Burger, Beyond the U.S. (Apr. 6, 2017),
`https://www.beyondmeat.com/en-US/whats-new/the-beyond-burger-beyond-the-us
`(“[B]eginning April 21, retail packs of The Beyond Burger will be sold in the
`protein aisle of Green Common supermarkets.” (emphasis added)).
`31 Stephanie Strom, N.Y. TIMES, Plant-Based, the Beyond Burger Aims to Stand
`Sturdy Among Meat (May 22, 2016) (emphasis added).
`32 Beyond Meat, Registration Statement (Form S-1) at 82 (Amend. 6, Apr. 30, 2019)
`(emphasis added).
`33 See Element Report.
`34 Sully Barrett, CNBC, How the Impossible Burger is changing the debate over
`GMO foods (Feb. 13, 2020) (emphasis added).
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`claims. Beyond Meat includes methylcellulose in its products – an ingredient
`
`recognized by both scientists35 and regulatory bodies36 as a synthetic chemical.
`26. Buoyed by these two false claims, Defendants’ effort to win the
`“landgrab” has largely succeeded. Brown admits, for example, that Beyond has
`seized a potentially insurmountable “first mover position.”37 He has even claimed to
`investors that Beyond may have “buil[t] such a big lead” in the marketplace that
`competitors may never be able to catch up.38
`27. While Defendants’ privileged market position is undeniable, their
`success cannot be disentangled from their false claims. From the very beginning of
`the company, Beyond Meat has relied on claims of superior protein and non-
`synthetic ingredients to win in the marketplace. Indeed, these same false refrains
`have been a fixture on Beyond Meat’s labeling and have appeared throughout
`Defendants’ website, public filings, and advertising activities.
`
`
`35 Lavany et al., supra note 15 (“[Methylcellulose] is a chemical compound derived
`from cellulose. . . . Methyl cellulose does not occur naturally and is synthetically
`produced by heating cellulose with caustic solution (e.g. a solution of sodium
`hydroxide) and treating it with methyl chloride.” (emphasis added)); see also
`Dorota Wojcik-Pastuszka et al., The Interactions and Release Kinetics of Sodium
`Hyaluronate Implemented in Nonionic and Anionic Polymeric Hydrogels, Studied by
`Immunoenzymatic ELISA Test, 14 PHARMACEUTICS 58 (2022) (methylceullose is a
`“synthetic polymer”).
`36 See European Food Safety Authority Panel on Food Additives and Nutrient
`Sources Added to Food, Re‐evaluation of celluloses E 460(i), E 460(ii), E 461, E
`462, E 463, E 464, E 465, E 466, E 468 and E 469 as Food Additives at 16 (2018)
`(methylcellulose is “obtained synthetically from fibrous plant material”).
`37 Beyond Meat, Q1 2021 Earnings Call (May 6, 2021), transcript available at
`https://www.fool.com/earnings/call-transcripts/2021/05/07/beyond-meat-inc-bynd-
`q1-2021-earnings-call-transcr/.
`38 Keith Nunes, MEAT+POULTRY, Beyond Meat works to build lead over competitors
`(June 12, 2020), https://www.meatpoultry.com/articles/23286-beyond-meat-works-
`to-build-lead-over-competitors.
`
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`Claims On Defendants’ Packaging
`28. Beyond Meat admits that it targets health-conscious consumers who
`care about “what they put in their body.”39 But people who care about their health
`read labels, and Defendants’ labels are false.
`29. For example, Defendants claim that their Beefy Crumbles deliver 26%
`of the percent daily value for protein and that their Beyond Burgers contain a full
`40% of the percent daily value for protein. But as revealed through testing using the
`“internationally recognized approach to measuring the quality of dietary protein”40—
`the Protein Digestibility Corrected Amino Acid Score, or PDCAAS—Beyond Meat’s
`protein claims are false.
`30.
`In layman’s terms, PDCAAS provides “corrected” protein levels by
`controlling for the efficiency and digestibility of a protein. As applied to percent
`daily values, PDCAAS reflects the commonsense notion that if a protein is of lower
`quality, you would need to eat more of it to get your daily protein requirements. 41
`
`
`39 Beyond Meat, Putting Their Money Where Their Mouth Is: Growing List of All-
`Star Athletes Invest in Beyond Meat (Feb. 20, 2019),
`https://www.beyondmeat.com/en-US/press/putting-their-money-where-their-mouth-
`is-growing-list-of-all-star-athletes-invest-in-beyond-meat.
`40 Ashleigh K. Wiggins et al., Research and Regulatory Gaps for the Substantiation
`of Protein Content Claims on Foods, 44 APPL. PHYSIOL. NUTRITION METAB. 95, 96
`(2019); see also Christopher P. Marinangeli et al., Potential Impact on the Digestible
`Indispensable Amino Acid Score as a Measure of Protein Quality on Dietary
`Regulations and Health, 75 NUTRITION REVIEWS 658, 659 (2017) (“Since the
`endorsement of the PDCAAS by the Codex Alimentarius Commission’s Committee
`on Vegetable Proteins and the Joint Food and Agriculture Organization of the United
`Nations (FAO)/World Health Organization (WHO) Expert Consultation on Protein
`Quality Evaluation, the PDCAAS has been widely adopted as the standard method
`for determining the quality of dietary protein and it remains so in the United
`States.”).
`41 Beyond Meat uses “pea protein isolate” as a primary ingredient. Pea protein
`isolate—which can be purchased in powdered form at supplement stores—is a
`processed form of pea protein that uses chemicals to remove the non-protein
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 12 of 53 Page ID #:12
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`31. This is a problem for Beyond Meat. Despite claims that its products
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`provide “equal or superior protein” as compared to real meat,42 the protein in Beyond
`Meat’s products cannot live up to the meat-based equivalents to which Beyond
`compares itself. While the PDCAAS score of traditional beef is .92 out of 1;43 the
`average PDCAAS scores of Beyond Meat’s crumbles and burger products are just
`.645 and .8875.44
`32. This difference is consequential. As shown above in Table 1, Beyond
`Meat’s lower PDCAAS scores have caused Defendants to overstate the daily protein
`value on these flagship products by between 12% and 30%. This means that
`Defendants’ claims about percent daily values for protein on each and every Beyond
`Burger and Beefy Crumble package are false. And when consumers purchase these
`products as substitute sources of protein to meet their daily protein requirements—as
`Beyond Meat encourages—they are being materially misled.
`33. But Beyond’s protein labeling is not only false; it also violates FDA
`regulations. The FDA has very specific rules for calculating percent daily value of
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`nutrients that naturally occur in peas. As Brown has described, Beyond’s proteins
`are fabricated through a chemical process: by putting pea flour into an aqueous
`slurry, manipulating the acidity of that slurry (causing the pea flour to separate into
`component parts), then pressurizing the protein to “reset[] the structure . . . so that it
`presents like it would in muscle.” Zachary Mack, Why Beyond Meat Uses Pea
`Protein (Jun. 11, 2019), https://www.theverge.com/2019/6/11/18661351/vergecast-
`podcast-beyond-meat-burger-pea-protein-interview. Such highly processed proteins
`are recognized in the literature as “fabricated” ingredients. See, e.g. Clodualdo C.
`Maningat, Textured Wheat and Pea Proteins For Meat Alternative Applications, Vol.
`99 CEREAL CHEMISTRY AT 46 (Nov. 19, 2021).
`42 Beyond Meat, Is Meat Production An Efficient Use of Resources? (Mar. 8, 2021),
`https://www.beyondmeat.com/en-US/whats-new/is-meat-production-an-efficient-
`use-of-resources.
`43 Jay R. Hoffman et al., Protein – Which is Best?, 3 J. SPORTS SCI. MED. 118, 120
`(2004).
`44 See Element Report.
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 13 of 53 Page ID #:13
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`protein. In fact, recognizing that not all proteins are the same quality, FDA requires
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`any percent-daily-value claims to be calculated using the PDCAAS method. (21
`C.F.R. § 101.9(c)(7).)
`34. Beyond Meat either did not test its proteins following this FDA-required
`PDCAAS method or chose to ignore that FDA requirement entirely.45 Instead,
`Beyond Meat appears to have (incorrectly) calculated the percent daily value
`assuming its (inferior) proteins could measure up to the PDCAAS of its meat-based
`counterparts. But as shown above, they cannot.
`35. Beyond Meat’s error has caused mislabeled and misbranded products to
`be sold throughout the supply chain. The products tested for this complaint were
`purchased from household-name retailers across the country, including Walmart,
`Publix, Albertsons, Safeway, and Ralphs.
`36. Beyond Meat’s exaggerated protein claims were unearthed by rigorous
`testing.46 After purchase, the products were shipped with dry ice to an independent
`and internationally accredited food-testing laboratory. Following AOAC
`International Official Methods of Analysis, the laboratory extracted a protein sample,
`analyzed its contents, and calculated the PDCAAS scores revealed above.
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`45 Because Beyond Burger and Beefy Crumbles—both fabricated foods
`manufactured pursuant to a patented method—are fortified with pea protein isolate as
`an added nutrient, protein is a Class I nutrient under FDA requirements and the total
`nutritional value of protein in the products must meet or exceed the amount declared
`on the products’ nutritional labels. (21 C.F.R. § 101.9(g)(4)(i)). Furthermore,
`Beyond Meat adds other exogenous sources of protein to its products, such as rice
`protein and yeast, reinforcing that Beyond’s stated protein values are subject to
`Class I requirements. (Id.)
`46 See Element Report.
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 14 of 53 Page ID #:14
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`Claims On Defendants’ Website
`37. Defendants’ website is a consumer-facing platform, with various pages
`that include a “newsroom,” a product catalog, suggested recipes, and an online shop.
`Across these varied pages, however, is one constant: Defendants’ false claims.
`38. For example, Defendants’ website has, for years, featured a Frequently
`Asked Questions section. In response to the self-posed question of whether “Beyond
`Meat [Is] Healthy,” Defendants claim that their products are “made from simple
`ingredients derived from plants, without . . synthetically produced ingredients” and
`“offer protein levels greater than or equal to their animal-based counterparts.”47
`39. At least by March 2015—in response to the question “How’s it
`made?”—Beyond Meat asserted that it “uses all-natural ingredients” and did not
`mention the synthetically produced methylcellulose used in Beyond Meat’s
`products.48 In 2021, Beyond was still repeating these false claims in its FAQs.
`Responding to a similar question— “What is Beyond Meat Made Out Of?”—Beyond
`still did not mention methylcellulose, but did choose to say that its “ingredients are
`simple and made from plants – without . . . synthetically produced ingredients.”49
`40. Beyond Meat has recently and quietly scrubbed the claims of “all-
`natural ingredients” from its website. Nonetheless, Beyond Meat’s current continues
`to falsely claim that its products do not use “synthetically produced ingredients.”
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`47 Beyond Meat, Frequently Asked Questions (last visited June 1, 2022),
`https://www.beyondmeat.com/en-US/faqs.
`48 A copy of the FAQs section of Beyond Meat’s webpage as of March 20, 2015,
`captured by the Wayback Machine, available at
`https://web.archive.org/web/20150320115902/http://beyondmeat.com:80/faqs.
`49 A copy of the FAQs section of Beyond Meat’s webpage as of April 29, 2021
`captured by the Wayback Machine, available at
`https://web.archive.org/web/20210429055411/https://www.beyondmeat.com/faqs/
`(emphasis added).
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 15 of 53 Page ID #:15
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`41. Likewise, Beyond Meat also claims on its “blog” that its products can
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`“consistently offer[] equal or superior protein” compared to meat.50
`Claims in Public Appearances
`42. As Beyond Meat’s “outward face,”51 Brown frequently serves as the
`voice and mastermind behind Beyond’s marketing. In these public appearances,
`Brown makes unambiguous commitments to the public about Beyond’s ingredients
`and frequently repeats the false statements described above.
`43.
`In an August 2019 interview with Bloomberg, for example, Brown said
`that he modeled Beyond’s advertising after “the iconic Got Milk? Ads.”52 Brown told
`the magazine he “wanted to send the same type of message—if you eat this, you’ll
`feel better, perform better.”53 He was quoted as claiming that a “well-designed plant
`protein can be a superior protein.”54
`44.
`In a December 2019 interview with Bloomberg Businessweek, Brown
`stated: “Our focus is entirely on the consumer. It’s our relationship with the
`consumer that makes the business so special. We listen to what they say. . . . They
`told us nothing artificial. They said keep everything natural. So that’s what we
`do.”55 (They don’t.)
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`50 Beyond Meat, Is Meat Production an Efficient Use of Resources (Mar. 8, 2021),
`https://www.beyondmeat.com/en-US/whats-new/is-meat-production-an-efficient-
`use-of-resources.
`51 Shanker, supra note 2.
`52 Deena Shanker, BLOOMBERG, The Hottest Thing in Food is Made of Peas, Soy,
`and Mung Beans (Aug. 21, 2019).
`53 Id.
`54 BLOOMBERG, Beyond Meat CEO Says Products are Fully Transparent (Dec. 16,
`2019), https://www.bloomberg.com/news/videos/2019-12-16/beyond-meat-ceo-says-
`their-products-are-fully-transparent-video.
`55 Id. (emphasis added). True to form, Brown stressed that he is “a health nut,” made
`sure it was clear that he eats his Beyond Meat “with a lettuce wrap,” and emphasized
`that it’s “not his fault” if consumers and businesses add “extra mayo.” Id.
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`Case 2:22-cv-03751-AB-GJS Document 1 Filed 06/02/22 Page 16 of 53 Page ID #:16
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`45. Similarly, in a June 2019 interview with The Verge, Brown stated:
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`“We’ve kept anything that’s not natural out of our product.”56 Brown further
`claimed that he had instructed the Beyond Meat “science team [] to scour the earth,
`[and] uncover the parts of nature that exist today that you can use to enhance this
`mission.”57
`46. And in a May 2020 interview on the television show “Mad Money” with
`Jim Cramer, Brown falsely claimed that Beyond Meat: “made a commitment . . . to
`use no artificial ingredients.”58
`Claims in SEC Filings and Press Releases
`47. Defendants have am