`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 1 of 20
`
`
`
`BURSOR & FISHER, P.A.
`Neal J. Deckant (State Bar No. 322946)
`Jenna L. Gavenman (State Bar No. Pending)
`1990 North California Blvd., Suite 940
`Walnut Creek, CA 94596
`Telephone: (925) 300-4455
`Facsimile: (925) 407-2700
`E-mail: ndeckant@bursor.com
`
` jgavenman@bursor.com
`
`Attorneys for Plaintiff
`
`
`
`
`UNITED STATES DISTRICT COURT
`
`EASTERN DISTRICT OF CALIFORNIA
`
`
`
`
`
`Case No.
`
`
`CLASS ACTION COMPLAINT
`
`
`JURY TRIAL DEMANDED
`
`
`
`v.
`
`Plaintiff,
`
`DAMIEN PATTERSON, on behalf of himself
`and all others similarly situated,
`
`
`
`
`SAZERAC COMPANY, INC.,
`
`
`
`
` Defendant.
`
`
`
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 2 of 20
`
`
`
`Plaintiff Damien Patterson (“Plaintiff”) brings this action on behalf of himself and all others
`
`similarly situated against Defendant Sazerac Company, Inc. (“Defendant”). 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 the Fireball
`
`Cinnamon malt beverage (the “Malt Product”) against Defendant for manufacturing, marketing,
`
`distributing, and selling underfilled and mislabeled alcoholic beverages.
`
`2.
`
`Sazerac manufactures, markets, and distributes alcoholic beverages under the brand
`
`name “Fireball.” Defendant’s Fireball Cinnamon Whisky (the “Whiskey Product”) (together with
`
`the Malt Product, Defendant’s “Alcohol Products”) has become “one of the most popular drinks to
`
`down – particularly in shot form.”1 The Whiskey Product is so popular that the brand name
`
`“Fireball” has become synonymous with Defendant’s Whiskey Product.2
`
`3.
`
`Defendant engaged in widespread false and deceptive advertising in connection with
`
`its Malt Products. In a practice that runs contrary to reasonable consumer expectations, Defendant
`
`employs a classic bait-and-switch scheme that causes unsuspecting consumers to spend more
`
`money for less than the advertised amount of alcohol they believe they are purchasing – and
`
`induces them to buy a fundamentally different product entirely. Specifically, the packaging and
`
`labeling of the Malt Products prominently advertise that they are “Fireball Cinnamon” products,
`
`which consumers understand to refer to Defendant’s Whiskey Products. However, “Fireball
`
`Cinnamon” is not a whiskey product it all; it is a malt beverage with half the alcohol of whiskey.
`
`4.
`
`In this case, Plaintiff purchased a Malt Product that prominently advertises on its
`
`front labels that it is “Fireball Cinnamon,” and includes the same style of label and logo as
`
`Defendant’s Whiskey Products. The Malt Product contains only 16.5% alcohol by volume (ABV),
`
`which is half that of Defendant’s more popular Whiskey Product (33% ABV). Thus, the Malt
`
`1 See https://whiskeyraiders.com/article/is-fireball-whiskey/.
`2 Id.
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 3 of 20
`
`
`
`Product purchased by Plaintiff contained only half of the alcohol content present in Defendant’s
`
`Whiskey Product.
`
`5.
`
`Defendant’s Whiskey Product3 is a concoction of whiskey, sweetener, and
`
`cinnamon flavoring. Fireball Whisky has been on the market since the 1980s and is one of the
`
`most popular whiskey products in the United States. Fireball Whisky is found in nearly every
`
`well-stocked bar and liquor store.
`
`6.
`
`In contrast, the Malt Product has only been offered for sale for several years, and it
`
`enjoys nowhere near the success of Fireball Whiskey. The vast majority of reasonable consumers
`
`do not know that the Malt Product even exists.
`
`7.
`
`Fireball Malt is a “malt beverage with natural whisky & other flavors and caramel
`
`color.” At merely half of the Whiskey Product’s ABV (i.e., 16.5% ABV compared to 33% ABV),
`
`Defendant’s Malt Product features a stark difference in alcohol quantity. This is because, as a malt-
`
`based beverage, the Malt Product is not “liquor” in the sense that it is not a distilled spirit such as
`
`whiskey – which serves as the base for Defendant’s Whiskey Product. Rather, the Malt Product
`
`features “malt” as its base, which is boiled like beer and fermented with yeast.4 Thus, the Malt
`
`Product contains nowhere near the alcohol content of whiskey, and it is not a whiskey product at
`
`all.
`
`8.
`
`Despite these key differences, the front labels of Defendant’s Whiskey Product and
`
`Malt Product are nearly identical. Both products come in similar clear, plastic bottles. Both
`
`products have the same signature red cap. Both products have the same coloring and look the same
`
`upon inspection. Both products are labeled “Fireball,” with the same font, font size, and
`
`placement. Both products have the same logo of a red demon, with similar size and placement.
`
`Both products say “Cinnamon” under the logo:
`
`
`
`
`3 Fireball was developed in Canada, where “whiskey” is spelled “whisky.” Accordingly, the brand
`is formally called “Fireball Whisky,” but in the United States such products are generically referred
`to as “whiskey.”
`4 See https://thestir.drizly.com/behind-the-bottle/what-is-malt-liquor/#:~:text=Malt%20liquor%
`20isn't%20%E2%80%9Cliquor,the%20light%20lager%20beer%20style.
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 4 of 20
`
`
`
`
`
`
`
`
`
`
`
`9.
`
`The nearly-identical labeling between these two products serves one purpose – an
`
`intent to deceive reasonable consumers. Notably, Fireball Malt does not disclose the alcohol
`
`percentage (i.e,. ABV) anywhere on the front of the packaging. Nor is it evident from the labeling
`
`that it is not a whiskey product, but rather a malt product, especially to reasonable consumers who
`
`are familiar with Fireball’s vastly-popular whiskey product. Based on the nearly identical labels,
`
`logo, and branding, reasonable consumers such as Plaintiff would understand these two Alcohol
`
`Products to be the same and therefore expect Fireball Cinnamon to be a whiskey product with the
`
`alcohol content as whiskey.
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 5 of 20
`
`
`
`10.
`
`In fact, Defendant prepared for reasonable consumers to be confused by its
`
`branding, and even included a “How Can I Tell The Difference Between Fireball Cinnamon And
`
`Fireball Whisky Products?” question on its website’s FAQ page. Even so, the FAQ does not
`
`disclose that Fireball Malt contains only half the alcohol as Fireball Whisky:5
`
`
`
`11.
`
`Despite knowing that its labeling practices were ripe for consumer confusion,
`
`Defendant chose to continue to affirmatively misrepresent its Malt Products with labels practically
`
`identical to its Whiskey Products.
`
`12.
`
`The amount of ABV in the Malt Product is material to consumers who purchase
`
`Defendant’s Malt Product. The Malt Products are marketed as alcoholic beverages under the
`
`umbrella branding “Fireball,” which is widely known as a whiskey beverage. The alcohol strength
`
`and effects that come from drinking a Malt Product are wildly different than those that come from
`
`drinking a Whiskey Product. Consumers expecting to enjoy a whiskey product are not expecting to
`
`receive a malt product.
`
`13.
`
`Thus, reasonable consumers seeking the taste and effects of a Whiskey Product with
`
`33% ABV are harmed by the accidental purchase of a Malt Product at 16.5% ABV. Nor do
`
`reasonable consumers expect to receive a malt beverage when they intend to purchase a whiskey
`
`product.
`
`14.
`
`Plaintiff, the Class, and Subclass Members relied to their detriment on Defendant’s
`
`unclear and fraudulent omissions on its Malt Product labels regarding the strength of alcohol
`
`present in each bottle. Plaintiff and Class and Subclass Members would not have paid to purchase
`
`Defendant’s Malt Products – or would not have paid as much as they did to purchase them – had
`
`they known the truth about the Malt Products’ actual alcohol content. As such, Plaintiff and Class
`
`5 See https://www.fireballwhisky.com/faqs.html.
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 6 of 20
`
`
`
`members paid a price premium for the Malt Products, and were induced to purchase an altogether
`
`product they had not intended to buy at all. Plaintiff and Class and Subclass Members thus
`
`suffered monetary damages as a result of Defendant’s deceptive and false representations and
`
`omissions.
`
`PARTIES
`
`15.
`
`Plaintiff Damien Patterson is a citizen of California. In or around August 2022, Mr.
`
`Patterson purchased a bottle of Fireball Cinnamon malt for approximately $12.00 from a Bottle
`
`Shop retail location located in Grass Valley, California. Prior to his purchase, Mr. Patterson
`
`reviewed the Malt Product’s labeling and saw that the bottle was labeled “Fireball Cinnamon.”
`
`Plaintiff Patterson saw these representations prior to, and at the time of purchase, and understood
`
`them as representations that the Fireball Cinnamon Malt Products was, in fact, the same or
`
`substantially similar to the Fireball Cinnamon Whiskey Products. Plaintiff relied on these
`
`representations in purchasing the Malt Product, and the alcohol content level was material to
`
`Plaintiff Patterson. Accordingly, these representations and warranties were part of the basis of the
`
`bargain in that, had Plaintiff Patterson known that the Malt Products contained half of the alcohol
`
`content than Defendant’s Whiskey Products – and was not a whiskey at all, but rather a different
`
`beverage entirely – he would not have purchased the Malt Product or would have paid significantly
`
`less for it. Plaintiff did not see, nor did he have any reason to see, any purported disclaimers
`
`stating that the Malt Product was a malt-based beverage as a separate and distinct product from
`
`Defendant’s popular whiskey-based beverage. Plaintiff is susceptible to this reoccurring harm
`
`because he cannot be certain that Defendant has corrected this deceptive and false advertising
`
`scheme, and he wants to continue to purchase Defendant’s Alcohol Products. Plaintiff greatly
`
`enjoys Fireball Whisky, but he currently cannot trust that Defendant will label and/or advertise its
`
`Alcohol Products truthfully and accurately. Plaintiff simply does not have the resources to ensure
`
`that Defendant is complying with state and federal law with respect to the labeling and advertising
`
`of its Alcohol Products.
`
`16.
`
`Defendant Sazerac Company, Inc. is a Louisiana corporation with its principal place
`
`of business at 101 Magazine Street, 5th Floor, New Orleans, Louisiana 70130. Defendant
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 7 of 20
`
`
`
`manufactures, markets, sells, and distributes the Malt Products throughout the United States and
`
`the State of California. Defendant sold the Malt Products with the aforementioned representations
`
`during the class period.
`
`JURISDICTION AND VENUE
`
`17.
`
`This Court has subject matter jurisdiction over this action pursuant to 28 U.S.C. §
`
`1332(d)(2)(A) because this case is a class action where the aggregate claims of the proposed class
`
`exceed $5,000,000.00, exclusive of interests and costs, there are over 100 members of the putative
`
`class, and Plaintiff, as well as many members of the proposed class, is a citizen of a state different
`
`from Defendant.
`
`18.
`
`This Court has personal jurisdiction over Defendant. Defendant does business in
`
`California and has sufficient minimum contacts with this state, including within this District,
`
`and/or has otherwise intentionally availed itself of the California consumer market through the
`
`promotion, marketing, and sale of its products to residents within this District and throughout
`
`California. Additionally, Plaintiff purchased his Malt Product in California.
`
`19.
`
`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. Also, Plaintiff resides in this District and purchased Defendant’s Malt Product in this
`
`District. Moreover, Defendant distributed, advertised, and sold the Malt Product to the members of
`
`the Class, which is the subject of the present complaint, in this District.
`
`CLASS ALLEGATIONS
`
`20.
`
`Nationwide Class Definition: Plaintiff seeks to represent a class of similarly
`
`situated individuals defined as all persons in the United States who have purchased Fireball
`
`Cinnamon malt beverages during the applicable statute of limitations period (the “Nationwide
`
`Class”).
`
`21.
`
`California Subclass Definition: Plaintiff Patterson seeks to represent a subclass
`
`consisting of all Class Members who purchased the Fireball Cinnamon malt beverages in the State
`
`of California during the relevant statute of limitations period (the “California Subclass”).
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 8 of 20
`
`
`
`22.
`
`The Nationwide and California Subclass are collectively referred to as the
`
`“Classes.” Subject to additional information obtained through discovery and further investigation,
`
`the above-described Classes may be modified or narrowed as appropriate.
`
`23.
`
`Numerosity (Fed. R. Civ. P. 23(a)(1)): The members of the Class and Subclass are
`
`geographically dispersed throughout the United States and are so numerous that individual joinder
`
`is impracticable. Upon information and belief, Plaintiff reasonably estimates that there are
`
`thousands of members in the Class and Subclass. Although the precise number of Class members
`
`is unknown to Plaintiff, the true number of Class members is known by Defendant and may 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 Defendant and third-party retailers and
`
`vendors.
`
`24.
`
`Commonality and Predominance (Fed. R. Civ. P. 23(a)(2), 23(b)(3)): A well-
`
`defined community of interest exists in the questions of law and fact involved in this case.
`
`Questions of law and fact common to the members of the Class that predominate over questions
`
`that may affect individual members of the Class include:
`
`(a)
`
`whether the marketing labeling and advertisements for the Malt
`
`Products were false and misleading;
`
`(b)
`
`(c)
`
`whether Defendant’s conduct was unfair and/or deceptive; and
`
`whether Plaintiff and the Classes sustained damages with respect
`
`to the claims asserted, and if so, the proper measure of their
`
`damages.
`
`25.
`
`Typicality (Fed. R. Civ. P. 23(a)(3)): Plaintiff’s claims are typical of those of the
`
`Classes because Plaintiff, like all members of the Classes, were exposed to Defendant’s false and
`
`misleading marketing, purchased the Malt Product in reliance on Defendant’s false and misleading
`
`representations, and suffered a loss as a result of that purchase.
`
`26.
`
`Adequacy (Fed. R. Civ. P. 23(a)(4)): Plaintiff has retained and is represented by
`
`qualified and competent counsel who are highly experienced in complex consumer class action
`
`litigation. Plaintiff and his counsel are committed to vigorously prosecuting this class action.
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 9 of 20
`
`
`
`Moreover, Plaintiff is able to fairly and adequately represent and protect the interests of the
`
`Classes. Neither Plaintiff nor his counsel have any interest adverse to, or in conflict with, the
`
`interests of the absent members of the Classes. Plaintiff has raised viable common-law and
`
`statutory claims of the type reasonably expected to be raised by members of the Classes and will
`
`vigorously pursue those claims.
`
`27.
`
`Superiority (Fed. R. Civ. P. 23(b)(3)): The class mechanism is superior to other
`
`available means for the fair and efficient adjudication of the claims of 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 Defendant’s 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
`
`Defendant’s 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
`Violation of Consumers Legal Remedies Act (“CLRA”)
`Cal. Civ. Code § 1750, et seq.
`(On Behalf Of The California Subclass)
`
`28.
`
`Plaintiff hereby incorporates by reference and re-alleges herein the allegations
`
`contained in all preceding paragraphs of this complaint.
`
`29.
`
`Plaintiff Damien Patterson brings this claim individually and on behalf of the
`
`Members of the proposed California Subclass against Defendant.
`
`30.
`
`Defendant violated California’s Consumers Legal Remedies Act (the “CLRA”) by
`
`engaging in the following unfair and deceptive business practices, as alleged above and herein:
`
`(a)
`
`Defendant violated Cal. Civ. Code § 1770(a)(5) by representing that the
`
`Malt Products have characteristics that they do not have.
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 10 of 20
`
`
`
`(b)
`
`Defendant violated Cal. Civ. Code § 1770(a)(9) by advertising the Malt
`
`Products with the intent not to sell them as advertised.
`
`31.
`
`The CLRA was enacted to protect consumers against such practices. The CLRA
`
`applies to Defendant’s conduct because the statute covers all sales of goods to consumers.
`
`32.
`
`Plaintiff Patterson and other Members of the California Subclass are “consumers”
`
`within the meaning of Cal. Civ. Code § 1761(d). By purchasing Defendant’s Malt Products,
`
`Plaintiff Patterson and other Members of the California Subclass engaged in “transactions” within
`
`the meaning of Cal. Civ. Code §§ 1761(e) and 1770.
`
`33.
`
`Defendant is a “person” within the meaning of Cal. Civ. Code § 1761(c).
`
`Defendant’s Malt Products are “goods” within the meaning of Cal. Civ. Code § 1761(a).
`
`34.
`
`Defendant’s unfair and deceptive business practices, as alleged above and herein,
`
`were intended to and did result in the sale of the Malt Products.
`
`35.
`
`As a direct and proximate result of Defendant’s unfair and deceptive business
`
`practices, as alleged above and herein, Plaintiff Patterson and other Members of the California
`
`Subclass suffered injury and damages in an amount to be determined at trial.
`
`36.
`
`On information and belief, Defendant’s unfair and deceptive business practices, as
`
`alleged above and herein, were willful, wanton, and fraudulent.
`
`37.
`
`On information and belief, Defendant’s officers, directors, and/or managing agents
`
`authorized the use of the false and misleading statements and material omissions regarding the
`
`alcohol content of Defendant’s Malt Products, as alleged above and herein.
`
`38.
`
`Plaintiff Patterson and the California Subclass Members seek to enjoin the unlawful
`
`acts and practices described herein.
`
`COUNT II
`Violation of Unfair Competition Law,
`Cal. Bus. & Prof. Code § 17200, et seq.
`(On Behalf Of The California Subclass)
`
`39.
`
`Plaintiff hereby incorporates by reference and re-alleges herein the allegations
`
`contained in all preceding paragraphs of this complaint.
`
`40.
`
`Plaintiff Damien Patterson brings this claim individually and on behalf of the
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 11 of 20
`
`
`
`Members of the proposed California Subclass against Defendant.
`
`41.
`
`Defendant violated California’s Unfair Competition Law (“UCL”), Cal. Bus. &
`
`Prof. Code §§ 17200-17210, by engaging in unfair, fraudulent, and unlawful business practices.
`
`42.
`
`Plaintiff Patterson has standing to pursue this claim because he has suffered an
`
`injury-in-fact and has lost money or property as a result of Defendant’s unlawful, unfair, and
`
`fraudulent conduct. Specifically, Plaintiff Patterson purchased a Malt Product for his own personal
`
`consumption. In doing so, Plaintiff Patterson relied upon Defendant’s false and misleading
`
`representations that the Malt Product was actually Defendant’s Whiskey Product. Plaintiff
`
`Patterson spent money in the transaction that he otherwise would not have spent had he known the
`
`truth about Defendant’s labels.
`
`“Unfair” Prong of the UCL
`
`43.
`
`A business act or practice is “unfair” under the UCL if it offends an established
`
`public policy or is immoral, unethical, oppressive, unscrupulous, or substantially injurious to
`
`consumers. That unfairness is determined by weighing the reasons, justifications, and motives for
`
`the business act or practice against the gravity of the harm to the alleged victims.
`
`44.
`
`Defendant’s conduct constitutes an “unfair” business practice because, as alleged
`
`herein, Defendant has engaged, and continues to engage, in a false, misleading, and deceptive
`
`advertising campaign that misleads consumers into believing that the Malt Products they purchase
`
`are actually whiskey products with similar ingredients, composition, and alcohol content in line
`
`with a whiskey product and not a malt beverage.
`
`45.
`
`Defendant’s conduct, as alleged above and herein, was not motivated by any
`
`legitimate business or economic need or rationale, other than to maximize its profits at the expense
`
`of consumers. No legitimate reasons, justifications, or motives outweigh the harm and adverse
`
`impact of Defendant’s conduct on members of the general consuming public. Defendant engaged,
`
`and continues to engage, in such conduct solely to wrongfully extract monies from consumers,
`
`including Plaintiff Patterson, to which Defendant is not entitled. Defendant could have, but has
`
`not, used alternate means of effecting their legitimate business needs, such as by properly and
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 12 of 20
`
`
`
`prominently labeling its Malt Product sufficiently differently from its Whiskey Product to ensure
`
`consumers were aware of the stark differences of the beverages within the bottles.
`
`46.
`
`Defendant’s conduct harms consumers and hurts market competition. Defendant’s
`
`conduct, as alleged herein, is immoral, unethical, oppressive, unscrupulous, unconscionable, and/or
`
`substantially injurious to Plaintiff Patterson and Members of the California Subclass because it
`
`violates consumers’ reasonable expectations. If Defendant had advertised their Alcohol Products
`
`in a non-misleading fashion, Plaintiff and other California Subclass Members could have
`
`considered other options for purchasing alcoholic beverages.
`
`“Fraudulent” Prong of the UCL
`
`47.
`
`A business act or practice is “fraudulent” under the UCL if it is likely to deceive
`
`members of the consuming public.
`
`48.
`
`Defendant has engaged, and continues to engage, in a “fraudulent” business practice
`
`by knowingly representing to consumers that the Malt Products they purchase will provide a
`
`greater alcohol content than they actually do. Defendant’s conduct deceived Plaintiff Patterson and
`
`other California Subclass Members who purchased the Malt Products in reliance on the tried and
`
`true Fireball label, and it is highly likely to deceive members of the consuming public because, as
`
`alleged above, it violates consumers’ reasonable expectations regarding alcohol content. Such a
`
`business practice lacks utility and functions only to maximize Defendant’s profits at the expense of
`
`its customers. The gravity of the harm to Plaintiff Patterson and other California Subclass
`
`Members, who lost money or property by paying for the Malt Products, far outweighs any benefit
`
`of Defendant’s conduct.
`
`49.
`
`Further, Defendant’s fraudulent business practice will continue to mislead
`
`consumers because it will be impossible for consumers to know whether Defendant has stopped
`
`misrepresenting the Malt Products until after consumers purchase such products. Accordingly, the
`
`risk of harm to Plaintiff Patterson, Members of the California Subclass, and the consuming public
`
`is ongoing.
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`11
`
`
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 13 of 20
`
`
`
`“Unlawful” Prong of the UCL
`
`50.
`
`A business act or practice is “unlawful” under the UCL if it violates any other law
`
`or regulation.
`
`51.
`
`Defendant’s business practices, as alleged herein, constitute violations of
`
`California’s Consumers Legal Remedies Act, Cal. Civ. Code § 1750, et seq. (the “CLRA”).
`
`Specifically, Defendant has unlawfully marketed and advertised its Malt Products in violation of
`
`Cal. Civ. Code §§ 1770(a)(5) and 1770(a)(9), as detailed above.
`
`52.
`
`Defendant’s business practices also constitute violations of California’s False
`
`Advertising Law, Cal. Bus. & Prof. Code § 17500, et seq. (the “FAL”), as detailed below.
`
`53.
`
`Defendant’s unfair, fraudulent, and unlawful business practices, as enumerated and
`
`explained above, were the direct and proximate cause of financial injury to Plaintiff Patterson and
`
`other Members of the California Subclass. Defendant has unjustly benefitted as a result of its
`
`wrongful conduct. Accordingly, Plaintiff Patterson and the California Subclass seek an order of
`
`this Court that includes, but is not limited to, requiring Defendant to: (a) provide restitution to
`
`Plaintiff and other California Subclass Members; (b) disgorge all revenues obtained as a result of
`
`their violations of the UCL; (c) pay attorneys’ fees and costs for Plaintiff and the California
`
`Subclass.
`
`COUNT III
`Violation of False Advertising Law,
`Cal. Bus. & Prof. Code § 17500, et seq.
`(On Behalf Of The California Subclass)
`
`54.
`
`Plaintiff hereby incorporates by reference and re-alleges herein the allegations
`
`contained in all preceding paragraphs of this complaint.
`
`55.
`
`Plaintiff Damien Patterson brings this claim individually and on behalf of the
`
`Members of the proposed California Subclass against Defendant.
`
`56.
`
`Defendant violated California’s False Advertising Law (“FAL”), Cal. Bus. & Prof.
`
`Code § 17500 by publicly disseminating false, misleading, and/or unsubstantiated advertisements
`
`regarding its Malt Products as alleged above and herein.
`
`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
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 14 of 20
`
`
`
`57.
`
`Plaintiff Patterson has standing to pursue this claim because he has suffered an
`
`injury-in-fact and has lost money or property as a result of Defendant’s false advertising.
`
`Specifically, Plaintiff Patterson purchased a Malt Product for his own personal consumption. In
`
`doing so, Plaintiff Patterson relied upon Defendant’s false, and misleading representations that the
`
`Malt Products are actually whiskey products with similar ingredients, composition, and alcohol
`
`content in line with a whiskey product and not a malt beverage. Plaintiff Patterson spent money in
`
`the transaction that he otherwise would not have spent had he known the truth about Defendant’s
`
`advertising claims.
`
`58.
`
`Defendant disseminated false and misleading advertisements to increase the sales of
`
`its Malt Products.
`
`59.
`
`Defendant knew or should have known that the advertisements for its Malt Products
`
`were false and/or misleading.
`
`60.
`
`Defendant knew or should have known that consumers, including Plaintiff Patterson
`
`and other Members of the California Subclass, would believe that the Malt Products are actually
`
`whiskey products with similar ingredients, composition, and alcohol content in line with a whiskey
`
`product and not a malt beverage.
`
`61.
`
`Plaintiff Patterson and Members of the California Subclass have suffered harm as a
`
`result of Defendant’s violations of the FAL because they paid monies for the Malt Products that
`
`they would not have paid but for Defendant’s false and misleading advertisements.
`
`62.
`
`Accordingly, Plaintiff Patterson and Members of the California Subclass seek an
`
`order of this Court that includes, but is not limited to, requiring Defendant to: (a) provide
`
`restitution to Plaintiff and other California Subclass Members; (b) disgorge all revenues obtained
`
`as a result of its violations of the FAL; (c) pay attorneys’ fees and costs for Plaintiff and the
`
`California Subclass.
`
`COUNT IV
`Fraud
`(On Behalf Of The Classes)
`
`63.
`
`Plaintiff hereby incorporates by reference the allegations contained in all preceding
`
`paragraphs of this complaint.
`
`CLASS ACTION COMPLAINT – JURY TRIAL DEMANDED
`
`
`
`
`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
`
`Case 2:23-cv-00150-MCE-DB Document 1 Filed 01/24/23 Page 15 of 20
`
`
`
`64.
`
`Plaintiff brings this claim individually and on behalf of the members of the
`
`proposed Classes against Defendant.
`
`65.
`
`66.
`
`This claim is brought under the laws of the State of California.
`
`As alleged above, Defendant provided Plaintiff and Class members with false or
`
`misleading material information about the Malt Product, including that it is a whiskey product with
`
`similar ingredients, composition, and alcohol content in line with a whiskey product and not a malt
`
`beverage.
`
`67.
`
`These misrepresentations were made with knowledge of their misleading nature, as
`
`evidenced by the fact that Defendant merely replicated its Whiskey Product’s label for use on its
`
`Malt Product without obvious clarifiers on the front-facing representations concerning the alcohol
`
`content of the Malt Product, or any conspicuous disclosure that it was a different product
`
`altogethe