throbber
Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 1 of 25
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`Jaimie Mak (SBN 236505)
`Of Counsel
`jmak@richmanlawgroup.com
`Kim Richman (pro hac vice forthcoming)
`krichman@richmanlawgroup.com
`535 Mission Street
`San Francisco, CA 94105
`Telephone: (718) 705-4579
`Facsimile: (718) 228-8522
`
`Attorneys for Plaintiff Quynh Phan and Proposed Class
`
`
`
`
`
`
`
`
`
`
`
`
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`QUYNH PHAN, on behalf of himself and all
`others similarly situated,
`
`Plaintiff,
`
`v.
`SARGENTO FOODS INC.,
`Defendant.
`
`
`
` Case No. _________________
`CLASS ACTION COMPLAINT
`DEMAND FOR JURY TRIAL
`
`Plaintiff QUYNH PHAN (“Phan” or “Plaintiff”), a resident of Santa Clara County,
`
`California, individually and on behalf of other similarly situated individuals, by and through his
`
`counsel, hereby files this Class Action Complaint for equitable relief and damages against
`
`Defendant SARGENTO FOODS INC. (“Sargento” or “Defendant”) regarding the deceptive
`
`labeling, marketing, and sale of Sargento’s dairy cheese products (“the Products”1) with the claim
`
`
`
`
`
`1 The following Sargento products are deceptively labeled and advertised as alleged in this
`Complaint: Monterey Jack Natural Cheese, Natural Double Cheddar Cheese, Natural White
`Cheddar Cheese, Colby Natural Cheese, Colby-Jack Natural Cheese, Medium Cheddar Cheese,
`Medium Natural Cheddar Cheese, Havarti Natural Cheese, Pepper Jack Natural Cheese, Swiss
`CLASS ACTION COMPLAINT
`1
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 2 of 25
`
`
`
`“No Antibiotics” when the Products are made with milk from cows raised with antibiotics and
`
`when the Products sometimes contain antibiotics, and alleges the following based upon
`
`information, belief, and the investigation of his counsel:
`
`
`
`INTRODUCTION
`
`1.
`
`Consumers are increasingly interested in and aware of how their food is produced
`
`due to concerns about public health, the environment, and animal welfare.
`
`2.
`
`In particular, consumers are concerned that the use of antibiotics in industrial
`
`agriculture contributes to the growing threat of antibiotic resistance. Consumers are also
`
`concerned about the use of antibiotics in industrial animal agriculture because the animals,
`
`including dairy cows, are subjected to treatment and conditions that inevitably make them sick.
`
`3.
`
`According to the Centers for Disease Control and the World Health Organization,
`
`antibiotic resistance—the ability of germs to defeat the drugs designed to kill them—is one of the
`
`
`
`
`Natural Cheese, Baby Swiss Natural Cheese, Aged Swiss Natural Cheese, Asadero Natural
`cheese, Sharp White Cheddar Cheese, Mild Yellow Natural Cheddar Cheese, Sharp Natural
`Cheddar Cheese, Extra Sharp Natural Cheddar Cheese, 4 State Natural Cheddar Cheese, Natural
`Double Cheddar Cheese, Taco Natural Cheese, Nacho & Taco Natural Cheese, Authentic
`Mexican Natural Cheese, Provolone with Natural Smoke Flavor Natural Cheese, 4 Cheese
`Pizzeria Natura Cheese, 4 Cheese Mexican Natural Cheese, Cheddar Jack Natural Cheese,
`Mozzarella Natural Cheese, Parmesan Natural Cheese, 4 Cheese Italian Natural Cheese, 18-
`Month Aged Natural Cheddar Cheese, Aged Italian Blend Natural Cheese, 14-Month Aged
`Parmesan Natural Cheese, Tomato & Basil Jack Cheese, Smokehouse Cheddar Natural Cheese,
`Garlic & Herb Jack Cheese, Reduced Fat Pepper Jack Natural Cheese, Reduced Fat Medium
`Natural Cheddar Cheese, Reduced Fat Colby Jack Natural Cheese, Fresh Asiago Natural Cheese,
`Gouda Natural Cheese, Muenster Natural Cheese, Sharp, Sharp Non-Smoked Provolone Natural
`Cheese, Cheddar-Mozzarella Natural Cheese, Aged Gouda Natural Cheese, Sharp White Natural
`Cheese, Aged White Natural Cheddar Cheese, Part-Skim Mozzarella Natural Cheese, Colby-
`Pepper Jack Natural Cheese, and Ricotta Natural Cheese. Discovery may reveal that additional
`Sargento products should be included within the scope of the allegations in this Complaint, and
`Plaintiff reserves the right to add such products.
`2
`
`CLASS ACTION COMPLAINT
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 3 of 25
`
`
`
`greatest and most urgent public health risks of our time.2 More than 2.8 million antibiotic-resistant
`
`infections occur in the United States each year, and more than 35,000 people die as a result.3 The
`
`problem of antibiotic resistance has only been exacerbated by the COVID-19 pandemic due to
`
`the widespread use of antibiotics in patients diagnosed with COVID-19.4
`
`4.
`
`Antibiotics are used extensively in factory-style dairy production because the
`
`treatment and conditions to which cows are subjected impair their health and cause infections.
`
`The majority of dairy cows in the United States are confined indoors and not allowed to graze on
`
`pasture.5 Teat trauma caused by milking machines, genetic selection for high milk yields, and
`
`unsanitary conditions make cows susceptible to clinical mastitis from pathogenic bacteria, which
`
`is the most commonly reported health problem in the dairy industry.6
`
`5.
`
`The use of antibiotics in industrial agriculture causes residues of antibiotics and
`
`antibiotic-resistant bacteria to emerge on agricultural lands, move through the environment,
`
`
`
`
`
`2 Antibiotic Resistance Threats in the United States, 2019, Centers for Disease Control (Dec.
`2019)
`at 3, https://www.cdc.gov/drugresistance/pdf/threats-report/2019-ar-threats-report-
`508.pdf; In the face of slow progress, WHO offers a new tool and sets a target to accelerate action
`resistance, World Health Organization
`(June 18, 2019),
`against antimicrobial
`https://www.who.int/news/item/18-06-2019-in-the-face-of-slow-progress-who-offers-a-new-
`tool-and-sets-a-target-to-accelerate-action-against-antimicrobial-resistance.
`3 Antibiotic Resistance Threats in the United States, 2019, Centers for Disease Control (Dec.
`2019) at vii, https://www.cdc.gov/drugresistance/pdf/threats-report/2019-ar-threats-report-
`508.pdf.
`4 The COVID-19 pandemic has resulted in increased antibiotic use because COVID-19
`patients are often prescribed antibiotics to prevent secondary bacterial infections, and many
`COVID-19 patients receive antibiotics even when not clinically indicated. Steffanie A. Strathdee
`et al., Confronting antimicrobial resistance beyond the COVID-19 pandemic and the 2020 US
`election,
`396
`Lancet
`1050
`(Sept.
`29,
`2020),
`https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(20)32063-
`8/fulltext?dgcid=raven_jbs_etoc_email.
`5 An HSUS Report: The Welfare of Cows in the Dairy Industry, The Humane Society of the
`United States at 3, https://www.humanesociety.org/sites/default/files/docs/hsus-report-animal-
`welfare-cow-dairy-industry.pdf (last visited Dec. 21, 2020).
`6 Id. at 5.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`3
`
`CLASS ACTION COMPLAINT
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 4 of 25
`
`
`
`contaminate waterways, and reach consumers in food.7 Antibiotics do not have to end up in food
`
`to pose a public health risk. Current science shows that a major cause of the development and
`
`spread of antibiotic resistance in human pathogens is environmental contamination from
`
`agricultural use.8
`
`6.
`
`Sargento is one of the United States’ largest producers of dairy cheese products,
`
`which it sells under the Sargento name brand.9
`
`7.
`
`Sargento knows that consumers seek out and wish to buy cheese products made
`
`with milk from cows raised without antibiotics. Sargento also knows that consumers will pay
`
`more for, or buy more of, such products than they would products made with milk from cows
`
`raised with antibiotics.
`
`8.
`
`To capture this growing market of consumers, Sargento labels the retail packaging
`
`of the Products with the label “No Antibiotics.”
`
`9.
`
`The “No Antibiotics” claim is false, deceptive, and misleading. The Products are
`
`produced with milk from cows who receive antibiotics. In addition, at least some of the Products,
`
`
`
`
`
`7 Terry Shistar & Carla Curle, Agricultural Uses of Antibiotics Escalate Bacterial Resistance,
`Beyond
`Pesticides
`(Winter
`2016-17),
`https://www.beyondpesticides.org/assets/media/documents/journal/bp-36.4-w17-Antibiotics-
`Cited2.pdf.
`for Apples, Alar, and Antibiotics, Beyond Pesticides,
`8 Terry Shistar, A
`Is
`https://www.beyondpesticides.org/assets/media/documents/infoservices/pesticidesandyou/docu
`ments/AisforApplesCited.pdf (last visited Dec. 21, 2020); see also Thomas F. O’Brien,
`Emergence, Spread, and Environmental Effect of Antimicrobial Resistance: How Use of an
`Antimicrobial Anywhere Can Increase Resistance to Any Antimicrobial Anywhere Else, Clinical
`Infectious Diseases S78-84 (June 1, 2002), https://pubmed.ncbi.nlm.nih.gov/11988877/; J.
`Jutkina et al., Antibiotics and Common Antibacterial Biocides Stimulate Horizontal Transfer of
`Resistance at Low Concentrations, 616-617 Sci. of the Total Env. 172-78 (Mar. 2018),
`https://pubmed.ncbi.nlm.nih.gov/29112840/.
`9 About Us, Sargento, https://www.sargento.com/our-company/about-us (last visited Dec. 21,
`2020).
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`4
`
`CLASS ACTION COMPLAINT
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 5 of 25
`
`
`
`in their final form as sold to consumers, still contain detectable levels of antibiotics, which are
`
`then ingested by consumers.
`
`10.
`
`Reasonable consumers, seeing Sargento’s prominent “No Antibiotics”
`
`representation, would expect that the Products are made without the use of antibiotics and,
`
`therefore, never contain antibiotics.
`
`11.
`
`In sum, Sargento is deceiving consumers into believing the Products are made
`
`without the use of antibiotics, when in fact they are made with milk from cows who are treated
`
`with antibiotics, and that the Products contain no antibiotics, when in fact some of them do contain
`
`antibiotics.
`
`12.
`
`By deceiving consumers about the nature and quality of the Products, Sargento is
`
`able to sell a greater volume of the Products, to charge higher prices for the Products, and to take
`
`away market share from competing products, thereby increasing its own sales and profits.
`
`13.
`
`Consumers lack the information and scientific knowledge necessary to determine
`
`whether the Products are in fact made with “No Antibiotics” and to know or to ascertain the true
`
`quality of the Products.
`
`14.
`
`As a result of its false and misleading labeling and advertising, and omissions of
`
`fact, Sargento was and is able to sell the Products to consumers in the United States, including in
`
`the State of California, and to realize sizeable profits.
`
`15.
`
`During any applicable statute of limitations period, Plaintiff and members of the
`
`Class (described below) saw Sargento’s “No Antibiotics” misrepresentations when purchasing
`
`the Products. Plaintiff and other Class members paid more for the Products based upon the
`
`misrepresentations than they otherwise would have paid, and/or purchased the Products, or
`
`purchased more of the Products, when they would not have if they had known the truth about
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`5
`
`CLASS ACTION COMPLAINT
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 6 of 25
`
`
`
`Sargento’s antibiotic use practices. As a result, Plaintiff and Class members suffered injury.
`
`Contrary to representations on the Products’ labeling and advertising, consumers received
`
`Products made with the use of antibiotics and Products that themselves sometimes still contained
`
`those antibiotics.
`
`16.
`
`Sargento’s false and misleading representations and omissions violate numerous
`
`laws, including the California Consumers Legal Remedies Act, Cal. Civ. Code §§ 1750-1785;
`
`California’s False Advertising Law, Cal. Bus. & Prof. Code § 17500 et seq.; and California’s
`
`Unfair Competition Law, Cal. Bus. & Prof. Code §§ 17200-17210, as well as other state consumer
`
`protection statutes and common law.
`
`17.
`
`Because Sargento’s labeling and advertising of the Products are false, deceptive,
`
`and misleading as to the true nature and quality of the Products, Plaintiff brings this deceptive
`
`advertising case on behalf of a class of consumers who purchased the Products in the United
`
`States, including a subclass who purchased the Products in Alabama, California, Connecticut,
`
`Florida, Illinois, Michigan, Minnesota, Missouri, New Jersey, and New York. Plaintiff seeks
`
`relief including actual damages, interest, costs, reasonable attorneys’ fees, and an order enjoining
`
`Sargento’s unlawful and deceptive acts. Even today, proposed Class members are purchasing the
`
`misrepresented Products, and they will continue to do so in the future unless Sargento’s conduct
`
`is stopped.
`
`
`
`JURISDICTION AND VENUE
`
`18.
`
`This Court has original subject-matter jurisdiction over this proposed class action
`
`pursuant to 28 U.S.C. § 1332(d), the Class Action Fairness Act (“CAFA”). There are at least 100
`
`members in the proposed Class. Plaintiff Phan is a citizen of California. On information and
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`6
`
`CLASS ACTION COMPLAINT
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 7 of 25
`
`
`
`belief, Defendant Sargento Foods Inc. is a citizen of Wisconsin. The amount in controversy
`
`exceeds the sum of $5,000,000, exclusive of interest and costs.
`
`19.
`
`This Court has personal jurisdiction over Sargento. Sargento regularly conducts and
`
`transacts business in California, purposefully avails itself of the laws of California, markets its
`
`Products to consumers in California, and distributes its Products to numerous retailers throughout
`
`California.
`
`20.
`
`Venue is proper in this District under 28 U.S.C. § 1391(a). Substantial acts in
`
`furtherance of the alleged improper conduct, including the dissemination of false and misleading
`
`labeling and advertising regarding the nature and quality of the Products and sales of the Products
`
`at issue, occurred within this District.
`
`
`
`21.
`
`Defendant Sargento Foods Inc. is a Wisconsin business corporation that maintains
`
`PARTIES
`
`its principal place of business in Plymouth, Wisconsin.
`
`22.
`
`Sargento manufactures and/or causes the manufacture of the Products and markets
`
`and distributes the Products in the United States, including in California. Sargento created and/or
`
`authorized the false and deceptive labeling and advertising of the Products.
`
`23.
`
`Plaintiff Phan is a citizen of the State of California and a resident of Santa Clara
`
`County.
`
`24.
`
`At all times mentioned herein, Plaintiff Phan was and is an individual consumer
`
`over the age of 18.
`
`25. Within the Class Period (as defined herein), Plaintiff Phan purchased Sargento’s
`
`Products labeled “No Antibiotics,” including Sargento Natural String Cheese Snacks and
`
`Sargento Sharp Cheddar Cheese Slices, from the following stores in San Jose, California: Lucky’s
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`7
`
`CLASS ACTION COMPLAINT
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 8 of 25
`
`
`
`(565 W. Capitol Expy.); Target (879 Blossom Hill Rd.); and Safeway (4950 Almaden Expy.).
`
`From 2018 to 2020, Phan purchased the above products at least once every two months.
`
`26.
`
`In deciding to make his purchases, Phan saw, relied upon, and reasonably believed
`
`Sargento’s “No Antibiotics” representations on the Product packaging. Examples of the Product
`
`packaging that Phan saw and relied upon are shown below:
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`8
`
`CLASS ACTION COMPLAINT
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 9 of 25
`
`
`
`27.
`
`Plaintiff Phan was willing to pay more for Sargento’s Products because he
`
`expected the Products to have been made without the use of antibiotics and to never contain
`
`
`
`antibiotics.
`
`28.
`
`Had Plaintiff Phan known at the time that Sargento’s Products were made with
`
`milk from cows who were given antibiotics and that the Products sometimes contain antibiotics,
`
`he would not have purchased or continued to purchase the Products.
`
`29.
`
`Plaintiff Phan ceased purchasing the Products because Sargento was labeling its
`
`Products “No Antibiotics” when they are made with the use of antibiotics and sometimes contain
`
`antibiotics.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`9
`
`CLASS ACTION COMPLAINT
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 10 of 25
`
`
`
`30.
`
`Plaintiff Phan continues to purchase cheese products and intends to continue
`
`purchasing cheese products in the future, but he does not currently purchase Sargento’s Products.
`
`31.
`
`Plaintiff Phan wishes to be able to continue purchasing Sargento’s Products and,
`
`therefore, wishes to see them truthfully made without antibiotics. Moreover, Phan is aware that
`
`members of the proposed Class are currently purchasing, and will continue to purchase,
`
`Sargento’s Products, unaware that the “No Antibiotics” representations are false, unless
`
`Sargento’s conduct is enjoined.
`
`
`
`
`
`FACT ALLEGATIONS
`
`I.
`
`Sargento Falsely Represents That the Products Are Made Without the Use of
`Antibiotics and Never Contain Antibiotics.
`
`32.
`
`Sargento labels the Products “No Antibiotics.” This label appears prominently on
`
`the front or back of the Product packaging.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`10
`
`CLASS ACTION COMPLAINT
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 11 of 25
`
`
`
`33.
`
`In an apparent effort to qualify the “No Antibiotics” label, the Products’ packaging
`
`also includes the fine print statement: “Our cheese is made from milk that does not contain
`
`antibiotics.” Examples of the Product packaging are shown below:
`
`
`
`34.
`
`Reasonable consumers interpret Sargento’s “No Antibiotics” label to mean that its
`
`Products are made with milk from cows who were not given antibiotics and that the Products
`
`never contain antibiotics.
`
`35.
`
`A 2018 nationally representative consumer survey conducted by Consumer
`
`Reports Survey Group found that 67% of consumers believe the claim “no antibiotics” means that
`
`no antibiotics were administered to the animals under any circumstances.10
`
`
`
`
`
`10 Natural and Antibiotics Labels Survey: 2018 Nationally Representative Phone Survey,
`Consumer Reports Survey Group (May 1, 2018), https://advocacy.consumerreports.org/wp-
`CLASS ACTION COMPLAINT
`11
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 12 of 25
`
`
`
`36.
`
`This understanding is consistent with the United States Department of Agriculture
`
`Food Safety and Inspection Service’s policy for use of the similar claim “antibiotics free” on food
`
`labels. Such a claim is permitted only with evidence that the source animals have not been
`
`administered antibiotics.11
`
`37.
`
`Sargento’s packaging and advertising fail to inform consumers that the Products
`
`are made with milk from dairy farms that administer antibiotics to their cows. This is a material
`
`omission, given that Sargento prominently labels its Products with the phrase “No Antibiotics.”
`
`II.
`
`Sargento Sources Its Milk from Farms That Use Antibiotics, and the Products
`Sometimes Contain Antibiotics.
`
`38.
`
`Sargento sources its Products from dairy farms that use antibiotics. Despite its “No
`
`
`
`Antibiotics” representations, Sargento does not attempt to ensure that the milk used in the
`
`Products comes only from cows who were never given antibiotics.
`
`39.
`
`In addition, at least some of the Products, in their final form as sold to consumers,
`
`still contain detectable levels of antibiotics, which are then ingested by consumers.
`
`40.
`
`Independent laboratory testing conducted in July 2020 has confirmed that
`
`Sargento’s Products are made with milk from cows who are administered antibiotics. In testing
`
`of Sargento’s Mild Cheddar sliced cheese product, which is marketed with the claim “No
`
`Antibiotics,” the laboratory found detectable levels of the antibiotic sulfamethazine.
`
`
`
`
`content/uploads/2018/10/2018-Natural-and-Antibiotics-Labels-Survey-Public-Report-1.pdf
`[hereinafter Natural and Antibiotics Labels Survey].
`11 U.S. Department of Agriculture Food Safety and Inspection Service, Labeling Guideline
`on Documentation Needed to Substantiate Animal Raising Claims for Label Submissions (Dec.
`2019).
`
`12
`
`CLASS ACTION COMPLAINT
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 13 of 25
`
`
`
`III.
`
`Sargento’s “No Antibiotics” Claims Are Material to Reasonable Consumers.
`41.
`Consumers are aware of, and concerned about, the health threat posed by
`
`antibiotic-resistant bacteria. The 2018 Consumer Reports survey found that most consumers are
`
`aware that antibiotic use in farmed animals may diminish their effectiveness in humans, and 43%
`
`of consumers were highly concerned about this.12 (See also supra ¶¶ 1-5.)
`
`42.
`
`Given these concerns, consumers seek out and are willing to pay more for dairy
`
`products that they believe are made without the use of antibiotics. The 2018 Consumer Reports
`
`survey cited above found that more than 60% of consumers would pay more for animal products
`
`labeled as being raised without antibiotics.13
`
`43.
`
`Consumers further seek out and are willing to pay more for Products that are
`
`guaranteed to contain no antibiotics.
`
`44.
`
`Consumers are also concerned about antibiotic use in dairy farming because the
`
`inhumane practices and conditions are harmful to the cows’ health and welfare, which necessitates
`
`the use of antibiotics. A 2015 Consumer Reports survey found that consumers deem it important
`
`that food not be produced through standard factory farm methods. For example, 84% of food
`
`shoppers believe it is “important” or “very important” to provide better living conditions for
`
`animals.14
`
`IV.
`
`Sargento’s Claims and Omissions Mislead and Harm Consumers.
`
`45.
`
`Sargento’s conduct in labeling and advertising the Products with the claim “No
`
`Antibiotics” deceived and/or was likely to deceive the public. Consumers have been, and continue
`
`
`
`
`
`12 Natural and Antibiotics Label Survey, supra note 10 at 5.
`13 Id. at 4.
`14 Natural Food Labels Survey: 2015 Nationally-Representative Phone Survey, Consumer
`Reports National Research Center at 3, https://foodpolitics.com/wp-content/uploads/Consumer-
`Reports-Natural-Food-Labels-Survey-Report.pdf.
`13
`
`CLASS ACTION COMPLAINT
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 14 of 25
`
`
`
`to be, deceived into believing that the Products are made with milk from cows who have not been
`
`given antibiotics, when in fact the Products come from dairy farms that use antibiotics.
`
`46.
`
`Consumers cannot discover the true nature of the Products from reading the label.
`
`Ordinary consumers do not have sufficient knowledge about the dairy industry to determine that
`
`antibiotics are used in the production of Sargento’s Products marketed with “No Antibiotics”
`
`claims.
`
`47.
`
`Sargento deceptively and misleadingly conceals material facts about the Products,
`
`namely, that the Products contain milk sourced from dairy farms that use antibiotics, and that the
`
`Products sometimes contain antibiotics.
`
`48.
`
`Sargento knew what representations it made on the labels and advertising of the
`
`Products. It also knew how the Products were sourced and produced. Sargento thus knew, or
`
`should have known, the facts demonstrating that the Products were falsely advertised.
`
`49.
`
`The production process Sargento uses for the Products is known only to Sargento
`
`and its suppliers and has not been disclosed to Plaintiff Phan or to the class of consumers he seeks
`
`to represent.
`
`50.
`
`51.
`
`Sargento’s concealment tolls the applicable statute of limitations.
`
`To this day, Sargento continues to conceal and suppress the true nature, identity,
`
`sources, and methods of production of its Products.
`
`52.
`
`In making the false, misleading, and deceptive representations and omissions at
`
`issue, Sargento also knew and intended that consumers would choose to buy, and would pay more
`
`for, products marketed with the claim “No Antibiotics,” furthering Sargento’s private interest of
`
`increasing sales of its products and decreasing the sales of its competitors’ products that are
`
`truthfully marketed.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`14
`
`CLASS ACTION COMPLAINT
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 15 of 25
`
`
`
`53.
`
`Had Sargento not made the false, misleading, and deceptive representations and
`
`omissions, Plaintiff and the Class members would not have been willing to pay the same amount
`
`for the Products they purchased, would have chosen competing products, and/or would not have
`
`purchased as much of the Products.
`
`54.
`
`Sargento’s ongoing false and misleading labeling and advertising of the Products
`
`continues to cause harm to the consumers Plaintiff seeks to represent and will continue absent
`
`injunctive relief.
`
`55.
`
`Consumers are at risk of real, immediate, and continuing harm if the Products
`
`continue to be sold using false and misleading labeling and advertising.
`
`
`
`CLASS ALLEGATIONS
`
`56.
`
`Plaintiff realleges and incorporates by reference the allegations set forth in each of
`
`the preceding paragraphs of this Complaint.
`
`57.
`
`This action is maintainable as a class action under Rules 23(b)(2) and (3) of the
`
`Federal Rules of Civil Procedure.
`
`58.
`
`The class definition(s) may depend on the information obtained throughout
`
`discovery. Notwithstanding, at this time, Plaintiff brings this action pursuant to Rule 23 of the
`
`Federal Rules of Civil Procedure on behalf of himself and all other similarly situated individuals
`
`within the United States (the “Class”) defined as follows: All consumers who purchased
`
`Sargento’s Products (as defined herein) in the United States within the applicable statute of
`
`limitations and until the date of class certification (the “Class Period”).
`
`59.
`
`Included in the Class, to the extent necessary, is a subclass of all persons who
`
`purchased Sargento’s Products (as defined herein) in the following states during the Class Period
`
`(the “Multi-State Subclass”): Alabama, California, Connecticut, Florida, Illinois, Michigan,
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`15
`
`CLASS ACTION COMPLAINT
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 16 of 25
`
`
`
`Minnesota, Missouri, New Jersey, and New York.
`
`60.
`
`Excluded from the Class are (1) Defendant, any entity or division in which
`
`Defendant has a controlling interest, and Defendant’s legal representatives, officers, directors,
`
`assigns, and successors; and (2) the judge to whom this case is assigned and the judge’s staff.
`
`61.
`
`Plaintiff brings the Class pursuant to Federal Rules of Civil Procedure 23(a),
`
`23(b)(1), 23(b)(2), and 23(b)(3).
`
`62.
`
`Plaintiff reserves the right to amend the Class definition(s) if further information
`
`and discovery indicate that the Class definition(s) should be narrowed, expanded, or otherwise
`
`modified.
`
`63.
`
`All members of the Class were and are similarly affected by the deceptive labeling
`
`and advertising of Sargento’s Products, and the relief sought herein is for the benefit of Plaintiff
`
`and members of the Class.
`
`
`
`1. Numerosity.
`
`64.
`
`At this time, Plaintiff does not know the exact number of the Class members. Based
`
`on the wide distribution of Sargento’s Products, Plaintiff believes that the Class comprises many
`
`thousands of consumers. The number of consumers in the Class is so large as to make joinder
`
`impracticable, if not impossible. Class members may be notified of the pendency of this action
`
`by recognized, Court-approved notice dissemination methods, which may include U.S. Mail,
`
`electronic mail, Internet postings, and/or published notice.
`
`2. Commonality.
`
`65.
`
`There is a well-defined community of interest 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 Class members include:
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`16
`
`CLASS ACTION COMPLAINT
`
`

`

`
`
`
`
`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 17 of 25
`
`(a)
`
`(b)
`
`(c)
`
`(d)
`
`Whether Sargento is responsible for the labeling and advertising at issue;
`
`Whether the labeling and advertising of the Products was unfair, false, deceptive,
`fraudulent, and/or unlawful;
`
`Whether Sargento breached a warranty created through the labeling and
`marketing of its Products; and
`
`Whether Sargento’s conduct, as set forth above, injured, and may continue to
`injure, Plaintiff and Class members.
`
`3. Typicality.
`
`66.
`
`Plaintiff’s claims are typical of those of the Class, as the claims arise from the
`
`same course of conduct by Sargento, and the relief sought within the Class is common to the Class
`
`members. Plaintiff, like all members of the Class, relied on Sargento’s false and misleading
`
`representations and purchased Sargento’s Products, or purchased more of them, or paid more for
`
`the Products than he would have paid if the products had been properly labeled, and sustained
`
`injury from Sargento’s wrongful conduct. Further, there are no defenses available to Sargento that
`
`are unique to Plaintiff.
`
`
`
`4. Adequacy.
`
`67.
`
`Plaintiff will fairly and adequately protect the interests of the Class. 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, and he has retained counsel competent and experienced in
`
`both consumer protection and class action litigation. Plaintiff and his counsel will fairly and
`
`adequately protect the interests of the Class members. Undersigned counsel have represented
`
`consumers in a variety of actions seeking to protect consumers from fraudulent and deceptive
`
`practices.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`
`
`
`
`17
`
`CLASS ACTION COMPLAINT
`
`

`

`Case 5:20-cv-09251-SVK Document 1 Filed 12/21/20 Page 18 of 25
`
`
`
`5. Predominance and Superiority of Class Action.
`
`68.
`
`The prerequisites to maintaining a class action pursuant to Federal Rule of Civil
`
`Procedure 23(b)(3) are met because questions of law and fact common to each Class member
`
`predominate over any questions affecting only individual members, and a class action is superior
`
`to other available methods for fairly and efficiently adjudicating the controversy.
`
`69.
`
`Individual joinder of the Class members is not practicable, and questions of law
`
`and fact common to the Class predominate over any questions affecting only individual Class
`
`members. Each Class member has been damaged and is entitled to recovery as a result of the
`
`violations alleged herein.
`
`70. Moreover, because the damages suffered by individual members of the Class may
`
`be relatively small, the expense and burden of individual litigation would make it difficult or
`
`impossible for individual Class members to redress the wrongs done to them, while an important
`
`public interest will be served by addressing the matter as a class action. Class action treatment
`
`will allow those persons similarly situated to litigate their claims in the manner that is most
`
`efficient and economical for the parties and the judicial system.
`
`71.
`
`

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket