Meggitt San Juan Capistrano Inc v. Nie Yongzhong et al

Filing 376

MINUTES (IN CHAMBERS): ORDER by Judge David O. Carter granting 266 Motion for Reconsideration ; granting in part 301 Motion to Dismiss Case. For the reasons explained above, the Court hereby GRANTS Plaintiffs' Motion for Reconsideration . To the extent that the Court previously found that Meggitt PLC was a necessary and indispensable party, Minute Order (Dkt. 244) at 813, the July 17, 2014 order is VACATED. Because Meggitt PLC need not be joined, the Court continues to have divers ity jurisdiction over this action. Consequently, the parties' arguments as to whether the Court should exercise supplemental jurisdiction over the state law claims are MOOT. The Court DENIES in part and GRANTS in part Defendants' Moti on to Dismiss. The Motion to Dismiss the federal Section 43(a) claim is DENIED. The Motion to Dismiss the California Unfair Competition Law claim is GRANTED. The UCL claim is DISMISSED WITHOUT PREJUDICE. Plaintiffs may file a Fourth Amended Complaint on or before November 17, 2014. The Clerk shall serve this minute order on the parties. (see document for details). (dro)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No. SACV 13-0239-DOC (DFMx)

Date: November 3, 2014

Title: MEGGITT (ORANGE COUNTY), INC., ET AL. V. NIE YONGZHONG, ET AL.

PRESENT:
THE HONORABLE DAVID O. CARTER, JUDGE
Deborah Goltz
Courtroom Clerk

Not Present
Court Reporter

ATTORNEYS PRESENT FOR PLAINTIFF:

ATTORNEYS PRESENT FOR DEFENDANT:

None Present

None Present

PROCEEDINGS (IN CHAMBERS): ORDER GRANTING MOTION FOR
RECONSIDERATION AND
PARTIALLY GRANTING MOTION
TO DISMISS [266] [301]
Before the Court is Plaintiffs’ Motion for Reconsideration (Dkt. 266) and Defendants’
Motion to Dismiss (Dkt. 301). Having considered the written submissions, the Court
hereby GRANTS the Motion for Reconsideration and partially GRANTS the Motion to
Dismiss.
I.

BACKGROUND
A. Factual History

Non-party Meggitt PLC is a British company that “indirectly own[s]” several
subsidiaries, including non-party Meggitt (Xiamen) Sensors & Controls Co. Ltd.
(“Meggitt Xiamen”). Second Am. Compl. (“SAC”) (Dkt. 163) ¶ 14. Meggitt PLC also

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
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Case No. SACV 13-0239-DOC (DFMx)

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Page 2

owns Plaintiffs Meggitt (Orange County), Inc. (“Meggitt OC”)1 and Meggitt (Maryland),
Inc. (“Meggitt Maryland”) (together, “Plaintiffs”). Id.
Plaintiffs Meggitt OC and Meggitt Maryland manufacture sensors and
accelerometers to measure vibration, shock, and pressure. Id. ¶ 13.
From October 2005 to August 2011, non-party Meggitt Xiamen employed
Defendant Nie Yongzhong (“Mr. Nie”) as an engineer at its manufacturing facility
located in Xiamen, China. Id. ¶ 14. During Mr. Nie’s employment, he had access to
Meggitt OC and Meggitt Maryland’s trade secrets, including detailed assembly
instructions, software code for automated calibration equipment, technical photographs,
engineering drawings, and written test protocols. Id. ¶ 15. Mr. Nie agreed to not disclose
or personally use any information obtained during his employment with Meggitt Xiamen,
including information owned by Meggitt PLC, Meggitt OC, and Meggitt Maryland. Id. ¶
16. While an employee of Meggitt Xiamen, Mr. Nie received mandatory training on
Meggitt PLC’s Code of Conduct, which requires employees to “[p]rotect, and not seek
personal gain through the inappropriate use of, the intellectual property and confidential
information of the Company.” Id. ¶ 23.
Unbeknownst to Plaintiffs Meggitt OC and Meggitt Maryland—and one year prior
to terminating his employment with Meggitt Xiamen—Mr. Nie founded Defendant
Xiamen Niell Electronics Co. Ltd. (“Niell-Tech”). Id. ¶ 17. Before he terminated his
employment, Mr. Nie visited Meggitt OC in California and regularly communicated with
Meggitt OC personnel in California. Id. Niell-Tech now manufactures and markets
sensors and accelerometers that have nearly identical specifications as several Meggitt
OC and Meggitt Maryland products. Id. ¶ 18.
B. Procedural History
Meggitt OC filed the original complaint against Mr. Nie and Niell-Tech (together,
“Defendants”) for trade secret misappropriation, unfair competition, conversion, and
breach of duty of loyalty. Complaint (Dkt. 1) at 1. Soon after, Meggitt OC sought to
preliminarily enjoin Niell-Tech from selling products using the proprietary trade secrets,
and requested expedited discovery. See generally Mot. for Preliminary Injunction (Dkt.
16). The Court granted the preliminary injunction and expedited discovery on September

1

Earlier in the case, Meggitt OC was known as Meggitt (San Juan Capistrano), Inc. During the course of the
litigation, the name was changed to Meggitt OC because the office moved from San Juan Capistrano, California to
Irvine, California. Second Am. Compl. ¶ 1.

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CENTRAL DISTRICT OF CALIFORNIA
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Date: November 3, 2014
Page 3

26, 2013. Order, Sept. 26, 2013 (Dkt. 43) at 1–2. The Ninth Circuit affirmed the Court’s
grant of a preliminary injunction. Mandate, June 20, 2014 (Dkt. 197).
On February 19, 2014, with leave from the Court, Meggitt OC amended its
complaint to add Meggitt Maryland as a co-plaintiff. See First Am. Compl. (Dkt. 122).
On May 5, 2014, again with leave from the Court, Plaintiffs Meggitt OC and Meggitt
Maryland filed the Second Amended Complaint, which removes the conversion and
breach of duty of loyalty claims, but adds the federal false advertising claim. See SAC.
Plaintiffs now bring three claims against Defendants: (1) trade secret misappropriation, in
violation of the California Uniform Trade Secrets Act; (2) unfair competition under
California Business and Professions Code §§ 17200, et seq. (“Unfair Competition Law”
or “UCL”); and (3) false advertising under Section 43(a) of the Lanham Act. Id. ¶¶ 26–
48.
On July 17, 2014, the Court granted Defendants’ motion to dismiss the second
amended complaint. Minute Order (Dkt. 244). There are now two related motions
before the Court: Plaintiffs’ Motion for Reconsideration of the Court’s Order Dated July
17, 2014 (“Reconsideration Mot.”) (Dkt. 266) and Defendants’ Motion to Dismiss
Plaintiffs’ Third Amended Complaint (“Dismissal Mot.”) (Dkt. 301). The Court will
address them in turn.
II.

Motion for Reconsideration

Plaintiffs move the Court to reconsider its July 17, 2014 order granting
Defendants’ motion to dismiss under Rule 12(b)(7). See Reconsideration Mot. In that
order, the Court held that non-party Meggitt PLC was a necessary and indispensable
party because it appeared that Meggitt PLC, not Plaintiffs Meggitt OC or Meggitt
Maryland, owned the trade secrets at issue.
A. Legal Standard
“[A]ny order or other decision, however designated, that adjudicates fewer than all
the claims . . . may be revised at any time before the entry of a judgment adjudicating all
the claims and all the parties’ rights and liabilities.” Fed. R. Civ. P. 54(b); see also WPP
Lux. Gamma Three Sarl v. Spot Runner, Inc., 655 F.3d 1039, 1059 (9th Cir. 2011)
(noting that district courts may revive dismissed claims under certain circumstances);
Credit Suisse First Boston Corp. v. Grunwald, 400 F.3d 1119, 1124 (9th Cir. 2005)
(identifying the “well-established rule that a district judge always has power to modify or
to overturn an interlocutory order or decision while it remains interlocutory”); Am. Canoe

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CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No. SACV 13-0239-DOC (DFMx)

Date: November 3, 2014
Page 4

Ass’n v. Murphy Farms, Inc., 326 F.3d 505, 514-15 (9th Cir. 2003) (stating that a district
court retains the power to modify rulings on partial dispositive motions); United States v.
Martin, 226 F.3d 1042, 1048-49 (9th Cir. 2000) (stating that until final judgment is
entered, a district court has the “inherent jurisdiction to modify, alter, or revoke”
interlocutory decisions).
“[A] motion for reconsideration should not be granted, absent highly unusual
circumstances.” 389 Orange St. Partners v. Arnold, 179 F.3d 656, 665 (9th Cir. 1999);
accord Khan v. K2 Pure Solutions, LP, No. 12-CV-05526, 2013 U.S. Dist. LEXIS
169855, at *5 (Dec. 2, 2013). “Reconsideration is appropriate if the district court (1) is
presented with newly discovered evidence, (2) committed clear error or the initial
decision was manifestly unjust, or (3) if there is an intervening change in controlling
law.” Sch. Dist. No. 1J, Multnomah Cnty., Or. v. ACandS, Inc., 5 F.3d 1255, 1263 (9th
Cir. 1993).
B. Analysis
Plaintiffs take issue with nearly every aspect of the Court’s previous decision.
Most of these arguments, however, are unpersuasive and cannot form the basis for
reconsideration. For example, Plaintiffs argue that the Court erroneously focused its
attention on the Framework Agreement, which provides that an entity known as “MSS
retains all Intellectual Property Rights and interest in and to or underlying the Products as
well as manufacturing methods and processes[.]” See Decl. of David Mendoza Ex. A
(Dkt. 39-9) at 9. They argue that the Court’s finding is contradicted by four other
agreements. See Reconsideration Mot. at 3–5. One agreement, the Manufacturing
Agreement between Meggitt Maryland and Meggitt Xiamen, is in tension with the
Court’s previous finding but does not contradict it—the Agreement does not establish,
nor even mention, the status of Meggitt OC or Meggitt PLC’s rights. See Decl. of
Lawrence R. Laporte Ex. 3 (Dkt. 185).2 As for the other three agreements, they are
presented for the first time now, upon this motion for reconsideration. See Decl. of
Melvin Hilderbrand Exs. 2–4. The Court cannot make decisions based on evidence that
was not presented and Plaintiffs make no showing that the evidence could not have been
presented earlier. See Sch. Dist. No. 1J, 5 F.3d at 1263 (“Reconsideration is appropriate
if the district court . . . is presented with newly discovered evidence . . . .”) (emphasis
added).
2

The Court also notes that in its original opposition, Plaintiffs made almost no effort to draw the Court’s attention to
this agreement, asserting in one sentence with no citation that, “This agreement clearly states that all trade secrets
are owned by Meggitt MD.” Opp’n (Dkt. 179) at 12. In general, parties can save themselves and the Court a lot of
time by not burying the lede.

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CENTRAL DISTRICT OF CALIFORNIA
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However, Plaintiffs are correct that the Court committed clear error by assuming
that Meggitt PLC claimed an interest in the trade secrets at issue. In United States v.
Bowen3, the Ninth Circuit expressly held that in order for a party to be “necessary,” it is
an “initial requirement that the absent party claim a legally protected interest relating to
the subject matter of the action.” 172 F.3d 682, 689 (9th Cir. 1999) (quoting Northrop
Corp. v. McDonnell Douglas Corp., 705 F.2d 1030, 1043 (9th Cir. 1983)). Here,
Plaintiffs submit the declaration of Meggitt PLC’s Group Corporate Affairs Director and
member of the Board of Directors, expressly disclaiming Meggitt PLC’s ownership of
any trade secrets at issue in this case. See Decl. of Philip E. Green (Dkt. 268) ¶ 6. Even
absent the affirmative disclaimer, both here and in the motion to dismiss at issue,
Defendants have not proffered evidence to show that Meggitt PLC has “asserted a formal
interest in the subject matter of this action or the action itself.” See Northrop, 705 F.2d at
1043. Therefore, upon reconsideration, the Court committed clear error by holding that
Meggitt PLC was a “necessary” party. See Sch. Dist. No. 1J, 5 F.3d at 1263.
Accordingly, that portion of the order, Minute Order (Dkt. 244) at 8–13, is VACATED.
III.

Motion to Dismiss

On July 17, 2014, the Court also granted Defendants’ motion to dismiss the
Section 43(a) Lanham Act claim. Minute Order (Dkt. 244) at 3–6. Plaintiffs have not
asked the Court to reconsider this portion of the July 17, 2014 order and have instead
amended their complaint. See Third Am. Compl. (Dkt. 275).
Defendants move to dismiss the trade secret and unfair competition claims,
pursuant to the Court’s now-vacated holding that Meggitt PLC is a necessary an
indispensable party. See Dismissal Mot. at 3–5. In light of the Court’s reconsideration,
these arguments, along with the arguments regarding the exercise of supplemental
jurisdiction, are now moot. However, Defendants also move to dismiss the Section 43(a)
Lanham Act claim under Rule 12(b)(6).
A. Legal Standard
Under Federal Rule of Civil Procedure 12(b)(6), a complaint must be dismissed
when a plaintiff’s allegations fail to set forth a set of facts which, if true, would entitle the
complainant to relief. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007); Ashcroft v.
Iqbal, 556 U.S. 662, 679 (2009) (holding that a claim must be facially plausible in order
to survive a motion to dismiss). The pleadings must raise the right to relief beyond the
3

It is also advisable to cite binding precedent in the initial round of motions, as opposed to citing it for the first time
on a motion for reconsideration.

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CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No. SACV 13-0239-DOC (DFMx)

Date: November 3, 2014
Page 6

speculative level; a plaintiff must provide “more than labels and conclusions, and a
formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S.
at 555 (citing Papasan v. Allain, 478 U.S. 265, 286 (1986)). On a motion to dismiss, this
court accepts as true a plaintiff’s well-pled factual allegations and construes all factual
inferences in the light most favorable to the plaintiff. Manzarek v. St. Paul Fire &
Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). The court is not required to accept
as true legal conclusions couched as factual allegations. Iqbal, 556 U.S. at 678.
In evaluating a Rule 12(b)(6) motion, review is ordinarily limited to the contents
of the complaint and material properly submitted with the complaint. Clegg v. Cult
Awareness Network, 18 F.3d 752, 754 (9th Cir. 1994); Hal Roach Studios, Inc. v. Richard
Feiner & Co., Inc., 896 F.2d 1542, 1555 n.19 (9th Cir. 1990). Under the incorporation
by reference doctrine, the court may also consider documents “whose contents are
alleged in a complaint and whose authenticity no party questions, but which are not
physically attached to the pleading.” Branch v. Tunnell, 14 F.3d 449, 454 (9th Cir.
1994), overruled on other grounds by 307 F.3d 1119, 1121 (9th Cir. 2002).
Dismissal without leave to amend is appropriate only when the court is satisfied
that the deficiencies in the complaint could not possibly be cured by amendment.
Jackson v. Carey, 353 F.3d 750, 758 (9th Cir. 2003); Lopez v. Smith, 203 F.3d 1122,
1127 (9th Cir. 2000) (holding that dismissal with leave to amend should be granted even
if no request to amend was made). Rule 15(a)(2) of the Federal Rules of Civil Procedure
states that leave to amend should be freely given “when justice so requires.” This policy
is applied with “extreme liberality.” Morongo Band of Mission Indians v. Rose, 893 F.2d
1074, 1079 (9th Cir. 1990).
B. Analysis
1. Section 43(a) Claim
a. Whether the Section 43(a) Claim Must Satisfy Rule 9(b)
“[W]here fraud is not an essential element of a claim, only allegations
(‘averments’) of fraudulent conduct must satisfy the heightened pleading requirements of
Rule 9(b).” Vess v. Ciba-Ceigy Corp. USA, 317 F.3d 1097, 1126 (9th Cir. 2003). To
state a claim under Section 43(a) of the Lanham Act, plaintiffs must plead:
(1) [T]he defendant made a false statement either about the plaintiff’s or its
own product; (2) the statement was made in commercial advertisement or

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CENTRAL DISTRICT OF CALIFORNIA
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Date: November 3, 2014
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promotion; (3) the statement actually deceived or had the tendency to
deceive a substantial segment of its audience; (4) the deception is material;
(5) the defendant caused its false statement to enter interstate commerce;
and (6) the plaintiff has been or is likely to be injured as a result of the false
statement, either by direct diversion of sales from itself to the defendant, or
by a lessening of goodwill associated the plaintiff’s product.
Jarrow Formulas, Inc. v. Nutrition Now, Inc., 304 F.3d 829, 835 n.4 (9th Cir. 2000).
“[F]raud is not an essential element of a [Section 43(a)] claim” because a plaintiff could
assert a Section 43(a) claim without alleging scienter or intent. See Vess, 417 F.3d at
1126; Kearns v. Ford Motor Co., 567 F.3d 1120, 1126 (9th Cir. 2009) (setting out the
elements of fraud). For example, a plaintiff could assert a Section 43(a) claim on the
theory that the defendant negligently made false statements in a commercial
advertisement. Under these circumstances, the proper approach is to test only the
allegations of fraudulent conduct against the heightened Rule 9(b) standard. See Vess,
317 F.3d at 1126; Newcal Indus. v. Ikon Office Solution, 513 F.3d 1038, 1044 (9th Cir.
2008) (noting that a Section 43(a) claim was well-pleaded when the “fraud allegations
[were pleaded] with greater specificity and . . . greater detail.”).
“In some cases, the plaintiff may allege a unified course of fraudulent conduct and
rely entirely on that course of conduct as the basis of a claim.” Vess, 317F.3d at 1103–
04. Here, Defendants argue that the Third Amended Complaint alleges a “unified course
of fraudulent conduct.” See Dismissal Mot. at 6–8. The Court agrees.
Plaintiffs allege that Defendants adopted an “overall plan and scheme . . . not just
to steal and use Meggitt’s trade secret, confidential and proprietary information, but to
also misrepresent and falsely hold themselves out to the industry as being a wellestablished, strong, reputable and reliable company with qualified engineers, and a wide
range of product offerings, and from whom the customer can expect to obtain highquality and reliable products and after-sale service.” TAC ¶ 32. This “overall plan and
scheme” included efforts to “intentionally and falsely advertise,” “give the false and
illusory appearance” that Defendants were well-established in the industry, and “deceive
potential customers.” TAC ¶¶ 33–36.
These allegations constitute “a unified course of fraudulent conduct” and,
therefore, the claim is “‘grounded in fraud’ or ‘sound[s] in fraud,’ and the pleading of
that claim as a whole must satisfy the particularity requirement of Rule 9(b).” See Vess,
317 F.3d at 1103–04.

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b. Whether the 43(a) Claim Was Pleaded with Particularity
In order to satisfy the 9(b) standard, Plaintiffs must specify the “‘who, what, when,
where, and how’ of the misconduct charged.” Id. at 1106. In addition, Plaintiffs “must
set forth what is false or misleading about a statement, and why it is false.” Id.
Defendants first argue that Plaintiffs fail to satisfy Rule 9(b) because “[t]here are
no factual allegations establishing when or where this ‘overall scheme and plan’ was
devised, much less who at Niell-Tech devised it.” See Dismissal Mot. at 8. However, the
issue is not when or where the scheme was devised, but rather where it was executed—
after all, the Section 43(a) claim attaches liability to the making of false statements, not
the planning of a scheme to make false statements. See Jarrow Formulas, 304 F.3d at
835 n.4; Vess, 317 F.3d at 1103–04 (holding that “the pleading of that claim as a whole
must satisfy the particularity requirement”) (emphasis added). In this case, it would be
unwarranted and far too demanding to require that Plaintiffs describe the circumstances
under which Mr. Nie and others hatched the alleged “scheme and plan.” See E&E Co. v.
Kam Hing Enters., 429 Fed. Appx. 632, 633 (9th Cir. 2011) (holding that the Rule 9(b)
standard “may be relaxed as to matters within the opposing party’s knowledge.”)
(quoting Moore v. Kayport Package Express, Inc., 885 F.2d 531, 540 (9th Cir. 1989)).
Here, Plaintiffs have alleged the “‘who, what, when, where, and how’ of the
misconduct charged.” Specifically, Plaintiffs allege that Mr. Nie and Niell-Tech falsely
advertised products through product catalogues and data sheets at the Society for
Experimental Mechanics trade show in Garden Grove, California in February 2013 and
the Sensors Expos & Conference in Rosemont, Illinois in June 2013. TAC ¶¶ 5, 41, 43–
48, 59–70, 81–83. The advertising was false because the catalogues and data sheets
advertised products that did not exist and contained false product specifications. TAC ¶¶
33–37.
While Defendants have admitted that they advertised some products that had not
been manufactured, TAC Ex. 2 (response to interrogatory), Defendants argue that they
never made a representation that all of the advertised products “were available for offthe-shelf consumption.” Dismissal Mot. at 12. Rather, the “promotional materials make
clear that these were products that could be made for customers in the future[.]” Id. at
12–13 (citing Bayview Hunters Point Cmty. Advocates v. Metro Transp. Comm’n, 366
F.3d 692, 698 (9th Cir. 2004) (noting that “predictions as to future events are ordinarily
non-actionable expressions of opinion under basic principles of the tort of fraudulent
misrepresentation”). This is purportedly in line with industry practice, in which orders
are normally “driven by customer specifications.” Id. at 13–14.

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Date: November 3, 2014
Page 9

Attached to their Third Amended Complaint, Plaintiffs present several examples
of product catalogues and data sheets that were distributed at trade shows in Orange
County, California and Rosemont, Illinois. TAC Ex. 8–11. The product catalogues do
contain future-oriented aspirational language, such as, “Niell-Tech will provide the most
excellent products and services for you,” TAC Ex. 3 at 61–62, which are non-actionable
by themselves. See Bayview, 366 F.3d at 698.
However, the data sheets contain detailed specifications for products for which
neither prototypes nor samples were ever manufactured. See, e.g., TAC ¶¶ 61–69. The
data sheets contain representations that some non-manufactured products had “proven
use” under certain conditions, see, e.g., TAC ¶ 70, and that others were “made by Xiamen
Niell-Electronics Co., Ltd.” and operate at certain levels, see, e.g., TAC ¶ 48. The data
sheets also contain photographs of non-manufactured products, some of which are
actually photographs of Plaintiffs’ products that were photoshopped to bear Defendants’
marks and product numbers. See, e.g., TAC ¶¶ 52–54.
While it might turn out that customers within this particular industry would not be
misled by these representations, this is simply not a proper basis for dismissal. See Mead
Johnson & Co. v. Abbott Labs., 209 F.3d 1032, 1034 (7th Cir. 2000). Plaintiffs have
alleged that on at least two specific occasions, Defendants advertised several products
that were purportedly “made by Xiamen Niell-Electronics Co., Ltd.” and had “proven
use” under certain conditions, despite the fact that the products had never been
manufactured by Defendants. See TAC ¶¶ 48, 61–69, 70. Therefore, Plaintiffs have
adequately pleaded the “‘who, what, when, where, and how’ of the misconduct charged”
and have “set forth what is false or misleading about a statement, and why it is false.”
See Vess, 317 F.3d at 1103–04.
Accordingly, the Motion to Dismiss the Section 43(a) claim is DENIED.
2. UCL Claim
Defendants moved to dismiss Plaintiffs’ claim under California’s Unfair
Competition Law. See Dismissal Mot. at 24–25. However, as Defendants point out,
Plaintiffs have failed to oppose that portion of Defendants’ motion. See generally Opp’n
to Dismissal Mot. This failure to oppose is deemed consent to grant the motion. See
C.D. Cal. L.R. 7-12.

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Accordingly, the Motion to Dismiss the UCL claim is GRANTED. However, in
light of both the unusual procedural posture of this case and the fact that Plaintiffs have
opposed Defendants’ same arguments in a previous filing, Opp’n (Dkt. 179) at 24–25, the
Court grants Plaintiffs leave to amend their complaint.
IV.

DISPOSITION

For the reasons explained above, the Court hereby GRANTS Plaintiffs’ Motion for
Reconsideration. To the extent that the Court previously found that Meggitt PLC was a
necessary and indispensable party, Minute Order (Dkt. 244) at 8–13, the July 17, 2014
order is VACATED.
Because Meggitt PLC need not be joined, the Court continues to have diversity
jurisdiction over this action. Consequently, the parties’ arguments as to whether the
Court should exercise supplemental jurisdiction over the state law claims are MOOT.
The Court DENIES in part and GRANTS in part Defendants’ Motion to Dismiss.
The Motion to Dismiss the federal Section 43(a) claim is DENIED. The Motion to
Dismiss the California Unfair Competition Law claim is GRANTED. The UCL claim is
DISMISSED WITHOUT PREJUDICE. Plaintiffs may file a Fourth Amended Complaint
on or before November 17, 2014.
The Clerk shall serve this minute order on the parties.
MINUTES FORM 11
CIVIL-GEN

Initials of Deputy Clerk: djg