e . RICHARD E. QUINTILONE II (SBN 200995) THOMAS J. MEENA (SBN265345) of D QUINTILONE & ASSOCIATES: A 6 FILE ere 22974 EL ToRO ROAD SUITE 100 SUPERSORY OF LOPS Laxt Forest, CA 92630-4961 TELEPHONE No. (949) 458-9675 nn 14 2" FACSIMILE No. (949) 458-9679 u aoe EMAIL REQ@QUINTLAW.COM exeouve ote sen ®-Ch ews ROGER R. CARTER (SBN 140196) Bt Bianca A. SorONIO (SBN 179520) THE CARTER LAW FIRM 2030 MAIN STREET, THIRTEENTH FLOOR IRVINE, CA 92614-7220 TELEPHONE NO. (949) 260-4737 FACSIMILE NO. (949) 260-4754 EMAIL: RCARTER@ CARTERLAWFIRM.NET Attorneys for PLAINTIFF EVELYN LEE, on behaif of herself and on behalf of a Class of all other persons similarly situated, SUPERIOR COURT OF CALIFORNIA COUNTY OF LOS ANGELES, CENTRAL EVELYN LEE, on behalf of herself and on | CASE NO.: behalf of a Class of all other persons 6c463118 similarly situated. CLASS ACTION * PLAINTIFF, vs. COMPLAINT FOR: Delaware Corporation and DOES I to 500, | 4, BREACH OF CONTRACT; GOLDLINE INTERNATIONAL, INC., a Inclusive, 2. BREACH OF THE COVENANT OF Goon Farr AND Fair DEALING 3. VIOLATION OF THE CONSUMER LEGAL REMEDIES ACT ICAL. Crv. Cove §§ 1750, er SEQ]; 4, UNFAIR, DECEPTIVE AND MISLEADING ADVERTISING [CAL. Bus. & PROF. Cove § 175001 5. UNLAWFUL, DECEPTIVE AND UNI BUsINess PRACTICES [CaL. Bus. & PRor. Corey DEMAND FOR JURY TRIAL * Defendant. Teri santa Uwe os Bu 00°sb6s SEIN Pe CLASS ACTION COMPLAINT THSWO7LET SHSSUTVIT BOTSPTPte PLAINTIFF, EVELYN LEE, on behalf of herself and all others si jlarly situated, complains and alleges upon information and belief based, among other things, upon the investigation conducted by PLAINTIFF by and through her attorneys, as follows: 1. INTRODUCTION 1 Plaintiff and proposed class representative EVELYN LEE (“PLAINTIFF™ or ih E”) bring this action individually and on behalf of all other persons similary situated against Defendant Goldine International, Inc. (*GOLDLINE”) to recover damages arising from Goldline’s breach of contract; breach of the covenant of good faith and fair deal 85 violation of the Consumer Legal Remedies Act (“CLRA”) [CAL. Civ. Cope §§ 1750, er ‘589.]; conducting unfair, deceptive, and misleading advertising [CAL. BUS. & PROF. CODE § 17500}; and conducting unlawful, deceptive, and unfair business practices [CAL. Bus. & Pror. Cope § 17200] 2. PLAINTIFF brings this California consumer class action against GOLDLINE. GOLDLINE is 2 precious metal dealer that buys and sells numismatic coins and bullion to investors and collectors across the nation via telemarketing and telephone sales. GOLDLINE js an established business that has gained national prominence in recent years through its association with sponsored talk show hosts and paid celebrity spokespeople who have agreed to promote GOLDLINE products by playing off the fear of inflation to encourage people to purchase gold and other precious metals as an investment that will protect them from an “out of control government.” Gold sold through GOLDLINE is equivalent to buying collector coins. GOLDLINE misleads customers into. buying overpriced gold coins and bullion that they were not in the market for. GOLDLINE grossly overcharges for its numismatic coins and bullion, falsely and deceptively claims that its products are “good” investments, and its sales persons misrepresent themselves as “Investment Advisors” or “Financial Advisors” able to give “investment advice” and imply that they have a fiduciary responsibility to get customers the most return on their investments. GOLDLINE also focuses its advertising efforts on individuals over the age of 65 who are likely to be deceived or misled by their advertising 2 CLASS ACTION COMPLAINTvepieTe 3, GOLDLINE products are, in fact, a bad investment and have nowhere near the value advertised by GOLDLINE. GOLDLINE’s marketing scheme is nothing more than a scam designed to induce market-wary investors to purchase numismatic coins and bullion worth far less than represented by GOLDLINE and its outside associates. GOLDLINE has made millions of dollars in profits at the expense of Plaintiffs and Class Members as a result of this fraudulent and deceptive scheme. 4. This class action arises from GOLDLINE’s policy and practice of misrepresentation to its customers of the actual value of its products. 5, In addition, this putative class action arises from GOLDLINE’s policy and practice of charging a “commission” fee, which is never stated in any of its paperwork 6. PLAINTIFF and the Class members seck monetary relief on behalf of current and former GOLDLINE customers who were misrepresented to pay GOLDLINE an inflated value and a hidden “commission” fee; the imposition of constructive trusts on all monies by which GOLDLINE was unjustly enriched as a result of collecting the ion” fees; and all such other and further relief to which they may be entitled to under the CLRA, and common law, including, without limitation, restitution, 2. JURISDICTION AND VENUE 7. GOLDLINE operates and does business in the County of Los Angeles, State of California, Pursuant to section 1780 of the California Civil Code, this action may be commenced in the county in which the person against whom it is brought is doing business. Further, section 17203 of the California Business and Professions Code empowers “any court of competent jurisdiction” to enter orders or judgments as may be necessary to prevent the use or employment of by any person of any practice which constitutes unfair competition, which is alleged in this Complaint. 3. PARTIES 8. PLAINTIF EVELYN LEE is an individual, citizen, and resident of the City of Camarillo, County of Ventura, located in the State of California and a current GOLDLINE customer who has numerous contacts to Los Angeles County. 3 CLASS ACTION COMPLAINT9. DEFENDANT is GOLDLINE INTERNATIONAL, INC., a corporation incorporated in Delaware, having its principal place of business at 1601 Cloverfield Boulevard, Santa Monica, California 90404-4162, and conducting business in the County of Los Angeles, California. 10, At all relevant times herein, DEFENDANT GOLDLINE did and continues to conduct business in Los Angeles County, California. 4. FACTUAL BACKGROUND ea action against GOLDLINE is necessary to recover for economic loss suffered by PLAINTIFF and the Class as a result of GOLDLINE’s systematic scheme to fraudulently induce market-wary customers into purchasing numismatic coins and bullion at grossly inflated prices. GOLDLINE is a precious metal dealer that buys and sells numismatic (collector) coins and bullion coins and bars to customers 12, GOLDLINE has over 250 employees, most of whom are telephone sales personnel who have been trained to engage in a uniform system of high-pressure sales tactics during each telephonic inquiry. GOLDLINE has been in business since 1960 but has gained national prominence by exploiting the economic decline in recent years through television commercials, GOLDLINE-sponsored talk show hosts, and paid celebrity spokespeople. GOLDLINE alleges it has annual sales of over $500 million. 13, GOLDLINE grossly overcharges its customers for numismatic coins and bullion. According to a recent United States Congressional study, the average GOLDLINE markup was 90% above the melt value of the coin, and the largest markup on a coin was 208% above the melt value. The average GOLDLINE markup in comparison to the best market price on a competitor’s websites was 47%, and going as high as 101% on one of the coins GOLDLINE offered according to the study. The GOLDLINE numismatic coins used by the study had an average markup of 152%, and the GOLDLINE bullion coins used in the study had an average markup of 28%. 14, GOLDLINE falsely claims to offer “good” investments and that purchasing its products is a better investment than investing in the stock market. GOLDLINE makes 4 CLASS ACTION COMPLAINTthese false assertions and misrepresentations via national television and radio commercials and during its employees’ conversations with potential customers. GOLDLINE’s biggest selling point is that buying numismatic coins and builion is a hedge against the declining value of the U.S. dollar. By selling gold and other precious metals at twice their melt value, however, the price of gold and other precious metals would need to double for consumers to break even on their “investment” in GOLDLINE products. In other words, the customer loses money on this “investment” the moment the transaction is completed. Thus, by claiming that this sort of purchase is a “good” investment, GOLDLINE misleads consumers for the purpose of tricking them into overpaying for its products. 15. Further, GOLDLINE fraudulently alleges in its letters to customers, “I strongly recommend that you consider adding precious metals to your portfolio now. As demand grows and inventories dwindle, people will find it far more difficult to acquire physical gold. We are already seeing this phenomenon Europe and India.” GOLDLINE fails to inform customers, no such “phenomenon” exists and that this is a false statement in furtherance of their scheme. 16. In furtherance of its fraudulent scheme, GOLDLINE associates with conservative pundits to drive a false narrative in order to profit ftom the sale of grossly overpriced GOLDLINE products. Fred Thompson, Dennis Miller, Mark Levin, Laura Ingraham, Lars Larson, Michael Smerconish, Monica Crowley, and Mike Huckabee have all been paid spokespeople for GOLDLINE. The.message these commentators push is that the U.S. government is out of control and unsafe economically, that inflation will continue to devalue the dollar, and that as an investor you should protect yourself by investing in gold and other precious metals that will increase in value in an inflationary/low U.S. dollar value environment. 17. Fox News talk show host and political commentator Glenn Beck was also a paid spokesperson until mid-December 2009 but is no longer acting as one because it violated Fox News’s rules. GOLDLINE continues to sponsor Glenn Beck’s program, however, and he encourages his viewers to purchase gold, now without mentioning CLASS ACTION COMPLAINTree GOLDLINE. Glenn Beck has repeatedly dedicated whole segments of his television program to advocating that the U.S. money supply is on a path to hyperinflation under President Barack Obama. He promotes the purchase of gold as the only safe investment alternative for consumers, and his audience is presented with a. GOLDLINE advertisement when his show cuts to a commercial break. GOLDLINE also sponsors the talk shows of other conservative pundits who deliver similar messages followed by commercial breaks that air GOLDLINE advertisements. 18. For example, on October 17, 2009, GOLDLINE spokesman Beck stated on his television program, The Glenn Beck show: Tonight, are we facing the end of the almighty dollar? ... So I’m sure we can all assume that the dollar is here to stay, and everything is just peachy. But in the offehance that, maybe, somebody in the Middle East wouldn’t tell us exactly the truth, you know, that théy’re not exactly 100 percent reliable, maybe we should discover what it means for our dollar and our 's no longer pegged to oil. What does that mean for Any way to protect yourself? Gold, 19, On November 23, 2009, Beck stated on his television program: “We could be facing recession, depression or collapse. Nothing Left! ... I like to call it the three G system here for this, its God, Gold and Guns.” 20, On April 9, 2008, GOLDLINE spokesman Beck stated on his television program: Explain, if I’m right, the policy that the Government has is something that, what is it, the WS2 or something like that policy which is — what is it, Stu? BW2, which is Bretton Woods 2 which is basically the world needs us; we can borrow; it doesn’t matter how much we'll borrow because the world will never disconnect from the world’s consumers... . Best thing we can do is buy the gold, right? 21. On December 3, 2009, GOLDLINE spokesman Beck stated on his television program: ‘There are those in power that [. ..] want to destroy the dollar or the dollar is on life support and they'd like it to stay there. It's true, Not much that you and I ean do about it. Well, there are a few things. You can prepare yourself, that’s what’s next 6 CLASS ACTION COMPLAINTareie year is a really all about on our program. Preparing yourself and part of that is ~ or could be — protecting yourself with gold. If you have the money to buy it, protect yourself from an out of control government with gold. 22. In the publication Politico, GOLDLINE spokesman Beck stated: | think you’re nuts. When the system eventually collapses, and the government comes with guns and confiscates, you know, everything in your home and all your possessions, and then you fight off the raving mad cannibalistic crowds that Ted Turner talked about, don’t come crying to me. I told you: get gold. 23. Ina GOLDLINE radio ad, GOLDLINE spokesman Beck stated: Just the other night I was rereading Atlas Shrugged, and in it fone of the characters is talking about the value of money and how paper dollars really hold no value whatsoever. They represent your work. The only thing of real value is gold. What you've backed that dollar up with. Well, we no longer back our dollars up with gold. If things get dicey, we're on a banking crisis now, the declining value of the dollar, what will hold its value? Gold. 1 want you to call 866-GOLDLINE and find out about buying gold. You can buy it as an investment. | buy it really as insurance because it's the one thing that will have value forever. 24. Ina GOLDLINE television commercial, GOLDLINE spokesman Beck stated: I've been spending a lot of time with the Founding Fathers lately, and I — in fact, | just read last night — there was a letter between — I think it was Thomas Jefferson and John Adams toward the end of their life, and they talked about how ~ what the future of America was going to be like and how bright it ‘was going to be. And then it was going to shake apart and there would be troubled times, but then it would reset itself and it would be great again. But I'd like a little bit of insurance. That’s why I want to talk to you alittle bit about GOLDLINE. I went out and I toured GOLDLINE. | think about a year ago, and went to GOLDLINE out in Los Angeles. Before I started turning you on to GOLDLINE, I wanted to look them in the eye. This is a top-notch organization that’s been in business since 1960. You see, back in 1933, FDR said, “OK, we're going to take all your gold and, gee, it’s worth $8 an ounce?” But some people got smart and they said, “Well, wait a minute, I've got antique coins. You can't melt these down. These are antique coins.” So I’m enough of a guy who doesn’t trust the crazy people in Washington enough to say, “Yeah, I don’t think - CLASS ACTION COMPLAINTe sere 25. 26. 27, 28, I'm gonna buy the new Krugerrand,” which I don’t know if you can get anymore. I’m gonna buy an antique coin, which has intrinsic value. If you're like our Founding Fathers, Thomas Jefferson and John Adams, then just know that what’s on the horizon is temporary and this too shall pass. Here's the deal: Call GOLDLINE, study it out, pray on it. If it’s the right thing for you, then do it. But please study it out, find the people that you trust. The people that I trust are the people at GOLDLINE. And you can talk to the people on the phone. They're not gonna pressure you. If it’s the right thing for you and your family and you want some insurance, trust the people at GOLDLINE. Thanks. Ina GOLDLINE radio ad, GOLDLINE spokesman Mike Huckabee state Tl bet you're concerned about the economy and the depreciation of the dollar just like me. That's why people are diversifying their portfolio with gold, as a way to protect against a falling dollar and future inflation. GOLDLINE has been helping people acquiring gold for $0 years. The people at GOLDLINE will explain just how casy it is for you to buy gold that’s delivered directly to you. Ina GOLDLINE radio ad, GOLDLINE spokesman Dennis Miller stated: Hey folks in a perfect world we could print all our own money, buy ridiculous amounts of stuff and live happily ever after. Well life ain't a fairy tale my friends. Look at the economy, they're spending more than Paris Hilton on a bad day and it doesn’t get us a tiny dog and a pink purse either. It leads to a lower dollar. What can we do to diversify our portfolio and protect against that falling dollar? Buy gold. Gold prices have tripled in value and they are up more than 40% in the past 2 years. T trust GOLDLINE. Ina GOLDLINE radio ad, GOLDLINE spokeswoman Laura Ingraham stated: With the stock market where it is, volatile, moving up one day, down the next, the trillion dollar budget deficit. And look what’s happening in the banking industry, the government continuing to print money it looks like. It’s important to remember there's only a finite amount of gold. It makes sense in these types of economic times to seek a safe harbour. And that is gold. ... It serves as a great ballast against inflation. Ina GOLDLINE radio ad, GOLDLINE spokesman Fred Thompson stated: 8 CLASS ACTION COMPLAINTOur country is experiencing the worst economic crisis since the Great Depression. Stocks and real estate have lost much of their value and government is spending trilions of dollars in a desperate attempt to bail us out. In these tough times I believe you should own gold. Gold offers diversification so all your eggs aren’t all in one basket. And gold is one of the few investments that is going up every year since 2001. My choice for gold is GOLDLINE. See Exhibit “A” for a collection of misleading representations made by Defendant. 29. GOLDLINE and its spokespeople thus represent that purchasing GOLDLINE products is a good investment by portraying them as a hedge against the declining value of the U.S. dollar. PLAINTIFF and the class heard and relied upon these representations and advertisements. However, using this premise to charge an inflated price is fraudulent and deceptive for several reasons. First, the investor is not getting a true hedge because the value of the dollars s/he spends is decreased at the root of the transaction by grossly overpaying for numismatic coins and bullion, which undermines the reason the investor enters the transaction in the first place. Second, the numismatic coins GOLDLINE pushes the hardest have the least melt value, and having precious metals with a high melt value is the only way to hedge against the value of the U.S. dollar—according to GOLDLINE and its outside associates. But at every stage of the marketing and sales process, GOLDLINE employees and its spokespeople uniformly represent to consumers that they cannot lose on these “investments.” 30. GOLDLINE employees aggressively push the sale of numismatic coins over bullion because GOLDLINE has the largest profit margin on numismatic coins and its sales ion on numismatic coins. The sales. representatives make the largest commis representatives tell customers that the reason they should purchase numismatic coins over bullion is because the government cannot confiscate them in the state of a national financial emergency. This is in reference to an overturned executive order issued by President Roosevelt in 1933 that required Am ans to sell their gold to the government, with an exception for “gold coins having a recognized special value to collectors of rare and unusual coins.” The executive order, however, did not define “special value” or “collector CLASS ACTION COMPLAINTvalue” or “collectibles.” Nevertheless, GOLDLINE’s sale representatives, and its paid spokespeople and television personalities it sponsors, perpetuate the misrepresentation that the government cannot confiscate GOLDLINE numismatic coins because it makes the selling of the high-priced numismatic coins easier. This reference still exists on the website under the Resources | Goldline International page. See Exhibit “B” for a true and correct print out of http:/www2.goldline.com/resources. 31. In addition, GOLDLINE sales representatives misrepresent their ability to give “investment advice.” When an interested poter westor calls GOLDLINE to inquire about its products, the inquiry is handled by a sales representative who has been trained to follow a script designed to conjure fears about the current state of the economy, the volatility of the dollar, and an outright financial collapse. If the caller seems reluctant to purchase, the sales professional is required to “tur over” the call to a management level employee, who professes to have superior knowledge and expertise about the assets. By offering investment advice during the telephonic sales process, GOLDLINE employees imply that they have a fiduciary responsibility to get customers the most return on their investments. 32. GOLDLINE sales representatives also claim or imply that they are “Investment Advisors” or “Financial Advisors” during the telephonic sales process, which also implies that they have a fiduciary responsibility to get customers the most return on their investments. However, GOLDLINE sales professionals are not licensed “Investment Advisors,” and, therefore, owe no such fiduciary duty to the customers. GOLDLINE sales professionals fail to disclose this fact at anytime during their telephone conversations with customers leading them to falsely believe they are dealing and working with licensed financial professionals. 33. Furthermore, GOLDLINE intentionally misleads cusomers by purporting to have a fair buy-back policy. During the telephonic sales process, GOLDLINE employees tell customers that GOLDLINE will buy back their numismatic coins and bullion, but this is not guaranteed anywhere in the terms of service. GOLDLINE employees attempt to -10- CLASS ACTION COMPLAINTs a 2 confuse customers when discuss 1g buy back prices, telling them that GOLDLINE will give them a return slightly under the “ * price when they decide to sell their numismatic coins and bullion back. This is misleading and confusing because GOLDLINE calls the price the customer originally pays the “buy” price, while the “bid” price is the non-marked up cost of the coin, and GOLDLINE employees do not explain that distinction to customers during the telephonic sales process. GOLDLINE thus falsely and deceptively leads its customers to believe that GOLDLINE buy back its products at the same price or a better price depending on the market, and that they cannot lose on their “investments” in GOLDLINE products. 34. GOLDLINE employces also falsely, deceptively, and misleadingly represent that other precious metal dealers charge an up-front fee consisting of a percentage of the total purchase price, while GOLDLINE only charges a 1% liquidation fee when it buys numismatic coins and bullion back from customers. In addition, GOLDLINE employees fail to disclose GOLDLINE fees that include: (1) storage fees a customer wants GOLDLINE to hold the gold; (2) conversion fees if a customer stored the gold with GOLDLINE but now wants it mailed; and (3) a $25 delivery fee. 35. PLAINTIFF heard statements by GOLDLINE as it advertised on Mark Levin's radio program that investments in the precious metals would yield promi ng returns. PLAINTIFF also heard statements about GOLDLINE on Glen Beck's show. PLAINTIFF inquired into GOLDLINE about the prices and the sort of precious metals she could “invest” in, After this inquiry, PLAINTIFF received a letter dated November 9, 2009, from an account executive, Frank, E. Johnson (“JOHNSON”). JOHNSON told PLAINTIFF that “he could not imagine another time in our history when it was more important for Americans to consider adding a recognized safe haven asset to their portfolios.” 36. PLAINTIFF is 64 years old and gave GOLDLINE a total of $245,863.60 after being led to believe she was securing her economic future. PLAINTIFF made payments to GOLDLINE on December |, 2009, December 8, 2009, January 12, 2010, and February 15, oie CLASS ACTION COMPLAINTvayiIe 2010 for various gold, silver and other coins. PLAINTIFF spent almost her entire retirement to ensure that she would have a secure economic future, and unfortunately, lost nearly one-third without even batting an eye. PLAINTIFF discovered her substantial loss when she reviewed her portfolio with GOLDINE and saw that her “investment” had been valued at $166,110.22, a staggering loss of $79,752.88 37. When PLAINTIFF contacted GOLDLINE about this incredible loss, she was told that the $79,752.88 were commission fees. However, absolutely none of PLAINTIFF’s paperwork in ates that she would be charged a commission fee. 38. Through the foregoing methods, GOLDLINE and its outside associates have fraudulently and deceptively misled PLAINTIFF and the Class. PLAINTIFF and the proposed Class members reasonably relied upon the above-described fraudulent and deceptive representations made by GOLDLINE, its employees, and its outside ass les when purchasing GOLDLINE products at grossly inflated prices. If those fraudulent and deceptive representations had not been made to PLAINTIFF and the proposed Class, they would not have purchased GOLDLINE products at prices far in excess of market value. 5. TOLLING OF STATUTES OF LIMITATION 39. On September 16, 2010, the United States Congress introduced House Resolution 6149, the “Precious Coin and Bullion Disclosure Act (“Act”), which would require a coin or precious metal dealer like GOLDLINE to disclose clearly and conspicuously in writing to the consumer before any sale of coins (including gold coins) or precious metal bullion: (1) any fee incurred by the customer upon sale consummation; and (2) the purchase price, the melt value, and the reasonable resale value of the coin or precious metal bullion. The Act would also require telephone sales solicitations for such coins or precious metal bullion to disclose the same information before the transaction is consummated. 40. ‘On September 23, 2010, GOLDLINE’S executive and expert witness testified in Vigorous opposition to the enactment of the Act, that though it openly advertises, “In the past ten years, spot gold prices have increased every year,” the passage of the Act, benefiting. consumers, would place an “insurmountable burden on precious metal dealers,” as the, “12. CLASS ACTION COMPLAINT“physical precious metals market is highly fragmented and no uniform pricing structure is available” and this information would have the “potential for misleading the customer.” ‘Though GOLDLINE prices its products daily it claimed to Congress that “determining on any given day what the ‘reasonable’ wholesale price of a product will be among more than five thousand dealers is literally impossible.” As of September 16, 2010, the Act was referred to House committee on Energy and Commerce. 41, DEFENDANTS have engaged in a campaign of disinformation and suppression of material information that quieted consumers’ suspicions and discouraged inquiry for years. By failing to disclose the uniform company practice and policy alleged above and successfully forcing private arbitration on the class actions across the United States that would have included PLAINTIFF and PLAINTIFF CLASSES, as well as individual claims and other actions, DEFENDANTS have succeeded in concealing from the United States Government, the individual States and the consuming public the truth about the nature and scope of its practices. 6. CLASS ALLEGATIONS, Ae initio -LAINTIFF Class and Sul 1s8e3 42. PLAINTIFF brings this action individually and on behalf of all persons as the Court may determine to be appropriate for class certification, pursuant to Rule 23 of the Fep. RuLes Civ. PRocepure, CALIFORNIA Cope OF CIVIL PROCEDURE § 382 and CALIFORNIA Civil. CoE § 1781. LEE seeks to represent the PLAINTIFF CONTRACT CLASS of consumers defined as All persons or entities in the United States who entered into an agreement to purchase a product from GOLDLINE during the relevant time frame and were charged a “commission” fee that was hidden, 43. PLAINTIFF brings this action individually and on behalf of all persons as the Court may determine to be appropriate for class certification, pursuant to Rule 23 of the Fe. RULES Civ. PROCEDURE, CALIFORNIA CODE OF CIVIL PROCEDURE § 382 and CALiForNIA CiviL, Cope § 1781. PLAINTIFF seeks to represent the PLAINTIFF CLRA CLASS of consumers defined as: “Be CLASS ACTION COMPLAINTsizes ‘The PLAINTIFF CLRA CLASS consists of all persons in the state of California who entered into an agreement to purchase a product from GOLDLINE during the relevant time frame and were charged a “commission” fee that was hidden. Excluded from the Class are governmental entities, GOLDLINE, any entity in which GOLDLINE has a controlling interest, and GOLDLINE’s officers, directors, legal representatives, successors, subsidiaries, and assigns. Also excluded from the Class is any judge, justice, or judicial officer presiding over this matter and the members of their immediate families and judicial staff. 44, The classes defined herein are collectively referred to as the “PLAINTIFF CLASSES”, 45. PLAINTIFF reserves the right to revise these definitions of the classes based on facts learned during discovery. B. — Maintenance of the Action 46. PLAINTIFF brings this action individually on behalf of herself and as representatives of all similarly situated persons pursuant to CAL, BUS. & PROF. CODE §§ 17203 and 17204, CaL. Cove Civ. PROG. § 382, and the provisions of Rule 23 of the FED. RULES Civ. Proc. C. Class Action Requisites 47, At all material times, PLAINTIFF was a member of the PLAINTIFF CLASSES des :d in the sections above. 48. This Class Action meets the statutory prerequisites for the maintenance of a Class Action as set forth in CaL, CODE Civ. PROC, § 382 and the provisions of Rule 23 of the Fep, Ruves Civ. Proc,, in that: (2) The persons who comprise the PLAINTIFF CLASSES are so numerous that the joinder of all such persons is impracticable and the disposition of their claims as a class will benefit the parties and the Court; olde CLASS ACTION COMPLAINTerie Scerw., 12 13 14 15 16 W 19 20 2 22 23 24 25, 26 27 28 (b) Nearly all factual, legal, statutory, declaratory and injunctive relief issues that are raised in this Complaint are common to the PLAINTIFF CLASSES and will apply uniformly to every member of each of the PLAINTIFF CLASSES; (©) The claims of the representative PLAINTIFF are typical of the claims of each member of the PLAINTIFF CL. PLAINTIEF, like all other members of the PLAINTIFF CLASSES, have sustained damages arising from DEFENDANT'S violations of the laws of the United States and State of Califor PLAINTIFF and the members of the PLAINTIFF CLASSES were and are similarly or identically harmed by the same unlawful, discriminatory, deceptive, unfair, systematic and pervasive pattern of misconduct engaged in by the DEFENDANT; (4) The representative PLAINTIFF will fairly and adequately represent and protect the interests of the Classes, and have retained counsel who is competent and experienced in Class Action litigation. There are no material conflicts between the claims of the representative PLAINTIFF and the members of the Classes that would make class certification inappropriate. Counsel for the Classes will vigorously assert the claims of all Class Members. 49. In addition to meeting the statutory prerequisites to a Class Action, this action is properly maintained as a Class Action pursuant to Rule 23(b) of the Fe. RULES C1v, PRoc, and CaL. Cope Civ. PROC. § 382, in that: (a) Without class certification and determination of declaratory, injunctive, statutory and other legal questions within the class format, prosecution of separate actions by individual members of the PLAINTIFF CLASSES will create the risk of: (1) Inconsistent or varying adjudications with respect to individual members of the Classes which would establish incompatible standards of conduct for the parties opposing the PLAINTIFF CLASSES; or 2) Adjudication with respect to individual members of the “1s CLASS ACTION COMPLAINT8 PLAINTIFF CLASSES which would as a practical matter be dispositive of the interests of the other members not parties to the adjudication or substantially impair or impede their ability to protect their interests; or (b) The parties opposing the PLAINTI F CLASSES have acted or refused to act on grounds generally applicable to the PLAINTIFF CLASSES, thereby making appropriate final injunctive relief or corresponding declaratory relief with respect to the PLAINTIFF CLASSES as a whole; or (©) Common questions of law and fact exist as to the members of the PLAINTIFF CLASSES and predominate over any questions affecting only individual members, and a Class Action is superior to other available methods for the fair and efficient adjudication of the controversy, including consideration of: (1) The interests of the members of the PLAINTIFF CLASSES in individually controlling the prosecution or defense of separate actions; (2) The extent and nature of any litigation concerning the controversy already commenced by or against members of the PLAINTIFF CLASSES; 3) The desi of the claims in the particular forum; and y or undesirability of concentrating the litigation (4) The difficulties likely to be encountered in the management of a Class Action. 50, is Court should permit this action to be maintained as a class action pursuant to CAL, CODE C1v. PROC. § 382 because: (a) The questions of law and fact common to the PLAINTIFF CLASSES predominate over any question affecting only individual members; “16. CLASS ACTION COMPLAINTVierie (b) A class and efficient adjudication of the claims of the members of the PLAINTIFF CLASSES; (©) PLAINTIFF and the other members of the PLAINTIFF CLASSES jon is superior to any other available method for the fair will not be able to obtain effective and economic legal redress unless the action is maintained as a class action; (4) There is a community of interest in obtaining appropriate legal and equitable relief for the common law and statutory violations and other improprieties, and in obtaining adequate compensation for the damages and injuries which DEFENDANT'S actions have inflicted upon the PLAINTIFF CLASSES; and, (©) There is a community of interest in ensuring that the combined assets and available insurance of the DEFENDANT are sufficient to adequately compensate the members of the PLAINTIFF CLASSES for the injuries sustained, 51. Class PLAINTIFFS contemplate the eventual issuance of notice to the proposed Class Members of each PLAINTIFF CLASS that would set forth the subject and nature of the instant action. The DEFENDANT’S own business records can be utilized for assistance in the preparation and issuance of the contemplated notices. To the extent that any further notices may be required, Class PLAINTIFFS would contemplate the use of addi nal medi fernet and/or mai , Bs. 52, Among the many questions of law and fact common to the class are: (a) Whether DEFENDANT breached its contractual agreement with the members of the PLAINTIFF CLASSES; (b) Whether DEFENDANT breached the covenant of good faith and fair dealing; (©) Whether DEFENDANT'S representations are deceptive; (4) Whether DEFENDANT'S representations are made in a “clear and “7 CLASS ACTION COMPLAINTSexr.e @) wo 2) (h) conspicuous manner;” Whether DEFENDANT'S truthfully disclosed in a clear and conspicuous manner: (1) the cost and quantity of goods being bought; (2) any material conditions associated with the purchase; (3) the manner in which refunds, exchanges and cancellations may be obtained; (4) whether the offer to sell includes @ provision whereby the ‘customer's silence or failure to take some action to reject or cancel the agreement will be interpreted by the seller as acceptance of the offer and all the terms of such an offer. Whether DEFENDANT’S representations are deceptive in that that they failed to disclose: (1) the total cost and quantity of goods or services being sold; (2) conditions applying to purchase, receipt or use of the offered goods or services; (3) information relating to the performance, efficacy characteristics or nature of the offered goods; (4) the refund, exchange, cancellation or repurchase policies of the seller; (5) the risk, liquidity, earnings potential or profitability of an investment opportunity; (© affiliations with or endorsements of the telemarketer by a government or any person; and (7) details concerning negative option features of an offer. Whether DEFENDANT violated the Consumer Legal Remedies Act; Whether DEFENDANT deployed a scheme or artifice to deceive and engaged in a common course of business which acted to deceive or CLASS ACTION COMPLAINTwa oO (k) oO (m) (a) ©) ©) @ mislead PLAINTIFF and members of the Class into purchasing its products; Whether the laws of the state of California were violated by DEFENDANT as a result of DEFENDANT'S usage of deceptive and misleading practi $5 Whether DEFENDANT breached its duty of good faith and fair dealing with PLAINTIFF and the PLAINTIFF CLASSES or otherwise engaged in unfair, fraudulent or wrongful business practices during the Class Period in connection with the marketing and sale of its services and/or products to California consumers; Whether, by its misconduct as set forth herein, DEFENDANT engaged in unfair, deceptive, untrue, or misleading promotion, implementation of their products and/or services; Whether DEFENDANT'S conduct is “unlawful,” “unfair” or “fraudulent” within the meaning supplied by California’s Trade Practices Act, BUS. & PROFS. CODE § 17200, ef seq. Whether DEFENDANT'S acts constitute “unfair trade practices” within the meaning of California’s Trade Practices Act, BUS. & PRors. CODE § 17200, et seq; Whether DEFENDANT activities related to their failure to disclose material and relevant information constitutes violations of Bus. & Prors. CODE § 17200; Whether DEFENDANT was unjustly enriched by its actions; Whether the PLAINTIFF and members of the PLAINTIFF CLASSES are entitled to specific performance, injunctive relief, restitution, disgorgement or other equitable relief against DEFENDANT; and Whether PLAINTIFF and members of the PLAINTIFF CLASSES have sustained damages as a result of DEFENDANT'S wrongful -19- CLASS ACTION COMPLAINTverve Baw sun 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 conduct and, if so, what is the proper measure of such damages, including punitive damages? 53. PLAINTIFF asserts claims that are typical of the CLASS, having purchased GOLDLINE products at rates far above their market value. PLAINTIFF and PLAINTIFF CLASSES have similarly suffered harm arising from GOLDLINE’s financial advice, unscrupulous salesmanship tactics, and false and/or deceptive buy-back procedure. 54, Injuries sustained by PLAINTIFF and PLAINTIFF CLASSES flow, in each instance, from a common nucleus of operative facts—GOLDLINE’s and its associates’ fraudulent and deceptive represent: mn of the investment value of GOLDLINE products and the conditions of the economy for the purpose of inducing PLAINTIFF and PLAINTH CLASSES to purchase GOLDLINE products at a price far in excess of market value. 55. As to the issues raised in this case, a class action is superior to all other methods for the fair and efficient adjudicati n of this controversy, since joinder of all class members impracticable and ce many legal and factual questions to be adjudicated apply uniformly to all class members. Further, as the economic or other loss suffered by vast numbers of class members may be relatively small, the expense and burden of individual actions makes it difficult for the class members to individually redress the wrongs they have suffered. Moreover, in the event disgorgement is ordered, a class action is the only mechanism that will permit the employment of a fluid fund recovery to insure that equity is achieved. There will be relatively little difficulty in managing this case as a class action, 56. The class action is superior to other available methods for a fair and efficient adjudication of the claims presented by this Complaint and would reduce the financial, administrative and procedural burdens on the parties and on the Court which individual litigation would otherwise impose. FIRST CAUSE OF ACTION 206 CLASS ACTION COMPLAINTvarie w BREACH OF CONTRACT ‘(Against All Defendants) 57. PLAINTIFF and PLAINTIFF CLASSES re-allege and incorporate by reference all of the allegations in the preceding paragraphs of this complaint as though fully set forth herein. 58. On December 1, 2009, December 8, 2009, January 12, 2010, and February 15, 2010, PLAINTIFF and DEFENDANT entered into a contract for the purchase and sale of various gold, silver and other similar coins. 59. During the Class period, DEFENDANT entered into a contract with PLAINTIFF and PLAINTIFF CLASSES. 60. The Agreement contains and contained an implied covenant of good faith and fair dealing that DEFENDANT would not do anything that would have the effect of injuring the right of PLAINTIFF and the Class to receive the benefits of the contract. 61. PLAINTIFF and PLAINTIFF CLASSES never intended for, and did not agree that PLAINTIFF CLASSES would pay a “commission” fee at the purchase of GOLDLINE products. DEFENDANT had no language in the paperwork given to PLAINTIFF that there was “commission” fee and no explanation of the unlawful buyback policy. 62. The contract did not state: (a) PLAINTIFF would be charged a commission fee for purchasing coins from GOLDLINE; (6) GOLDLINE’s agreement to repurchase the coins would be at the non- marked-up cost of the coin; (© PLAINTIFF would be charged an unconscionable commission fee and other charges for purchasing coins from GOLDLINE; (@ Defendants’ employees were commissioned salespeople who did not “undergo annual audits by a Big Four accounting fir a CLASS ACTION COMPLAIPi 1 (©) PLAINTIFF would have to hold onto her initial investment for years to simply break even given the unconscionable business practices of GOLDLINE. 63. In the alternative, PLAINTIFF and the CLASS make the allegation that if they signed anything or orally agreed to any provision by which their statutory and/or constitutional 2 3 4 5 6 || rights as set forth herein would be impaired or taken away then any such provision, term of the 7'|| contract, or inference, or deduction, would be (a) "unreasonable," (b) "unconscionable," (¢) 8 |] illegal, (4) invalid, (¢) in conflict with civil law, (1) in conflict with constitutional law, or (g) 9 || otherwise unenforceable. 0 64. PLAINTIF! and THE PLAINTIFF CLASSES performed all conditions, 11 || covenants and promises required on their part to be performed under the contract. 12 65. DEFENDANT failed to perform its obligations under the contract, including but 13 || not limited to: 4 (@) Buy-back of goods at the rate promised and the PLAINTIFF CLASS was 15 led to believe at the time of purchase. 16 66. As a further result of DEFENDANT'S breach of the said contract, PLAINTIFF 17 || and the PLAINTIFF CLASSES, and all others similarly situated, have been damaged in an 18 || amount to be determined at trial. 19 20 SECOND CAUSE OF ACTION 21 BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING 2 (Against All Defendants) 23 67. PLAINTIFF and PLAINTIFF CLASSES re-allege and incorporate by 24 || reference all of the allegations in the preceding paragraphs of this complaint as though fully 25 || set forth herein. 26 68. During the Class period, DEFENDANT entered into a contract with PLAINTIFF 27 || and PLAINTIFF CLASSES. 22. CLASS ACTION COMPLAINT69. California law recognizes ar plied covenant of good faith and fair dealing in every contract that neither party to the contract will do anything deliberately to deprive the other of the benefits of the agreement. A breach of the implied covenant of good faith and fair dealing involves something more than a breach of a contractual duty itself—it involves unfair dealing in the form of a conscious and deliberate act that unfairly frustrates the agreed common purpose of the contract and disappoints the reasonable expectations of the other party to the contract. A claim for breach of the implied covenant is separate and distinct from a contract claim if the plaintiff alleges that the defendant acted in bed faith to frustrate the benefits plaintiff was to receive under the contract. 70. During the Class period, DEFENDANT agreed to act in good faith and deal fairly with PLAINTIFF and PLAINTIFF CLASSES when it entered into the sales agreement with PLAINTIFF and PLAINTIFF CLASSES and accepted payment from them. 71. DEFENDANT deliberately and consciously acted in a way that unfairly frustrates the agreed common purpose of the contract and disappoints PLAINTIFF and PLAINTIFF CLASSES reasonable expectations. 72. PLAINTIFF and PLAINTIFF CLASSES did all of the significant things that the contract required them to do. 73. The Agreement contains and contained an implied covenant of good faith and fi dealing that DEFENDANT would not do anything that would have the effect of injuring the right of PLAINTIFF and PLAINTIFF CLASSES to receive the benefits of the contract. 74, DEFENDANT breached contracts with PLAINTIFF and PLAINTIFF CLASSES, and the covenant of good fait and fair dealing, by collecting a “commision” fee from PLAINTIFF and PLAINTIFF CLASSES even though the fee was not mentioned anywhere in the paperwork provided to PLAINTIFF and PLAINTIFF CLASSES. 75. DEFENDANT deprived the PLAINTIFF and the putative class of the benefits of the said contract as interpreted by the courts and judiciary as set forth above in making it impossible or impracticable for PLAINTIFF and PLAINTIFF CLASSES to contest, 2. CLASS ACTION COMPLAINTsieravze Secwr s.H een 13 14 15 16 "7 18 19 20 21 22 23 24 25 26 27 28 challenge, dispute the violations, citations, tickets, and the penalties rel 1g thereto, also as set forth hereinabove in this complaint 76. Further, DEFENDANT unfairly interfered with the PLAINTIFF and PLAINTIFF CLASSES right to receive the benefits of the contract, including, but not limited to: (a) Misrepresenting the value of the goods sold. (b) Misleading the PLAINTIFF and PLAINTIFF CLASSES that it would buy- back the goods at equal or better rate if the PLAINTIFF or PLAINTIFF CLASSES was unsatisfied with the purchased goods. (©) Utilizing a hidden “commission” fee that was not stated anywhere before the time of purchase. 77. Asa result of the acts and practices of the DEFENDANT, PLAINTIFF and PLAINTIFF CLASSES have suffered and sustained damages. ‘THIRD CAUSE OF ACTION IOLA’ IN OF CIVIL CODE § 1770(A)(14), (19) [CONSUMER LEGAL REMEDIES ACT (Against All Defendants) 78. PLAINTIFF and PLAINTIFF CLASSES re-allege and incorporate by reference all of the allegations in the preceding paragraphs of this complaint as though fully set forth herein. 79. This cause of action is based upon the protections afforded consumers in the State of California under the Consumers Legal Remedies Act, California Civil Code §§ 1750, et seq. (the “CLRA”). PLAINTIFF and the PLAINTIFF CLASSES were injured as a result of the misrepresentations by DEFENDANT. 80. The Consumer Legal Remedies Act applies to the DEFENDANT'S actions and the conduct described herein because it extends to transactions that are intended to result, or which have resulted, in the sale of goods or services to consumers. he CLASS ACTION COMPLAINT.I 81. PLAINTIFF and each member of the PLAINTIFF CLASSES are “consumers” within the meaning of Civil Code § 1761 (4). 82. The goods and services that are the subject of this litigation are “goods” 2 3 4 and/or “services” within the meaning of Civil Code § 1761 (a). 83. This action may be maintained as a class action under the CLRA, pursuant to 6 1781, because: 1 ble to bring all members of the Class before the court; 8 (b) ns of law or fact common to the Class are substantially 9 similar and predominate over the questions affecting individual members, as more 10 fully set forth in this Complaint; u (©) The claims or defenses of the representative PLAINTIFF are typical 12 of the claims or defenses of the Class; and 13 (& The representative PLAINTIFF will fairly and adequately protect the 4 interests of the Class 15 84, ‘The DEFENDANT concealed material facts regarding the purchase of its 16 products from PLAINTIFF and other Class members including the fact that the 17 DEFENDANT would charge a hidden “commission” fee. 18 BS. The DEFENDANT concealed material facts regarding the actual value of its 19 |} gold products at melt weight, and the actual value at which it would buy-back any goods 20 |] that the PLAINTIFF and PLAINTIFF CLASSES found unsatisfactory. 21 86. This type of information is relied upon by PLAINTIFF, the PLAINTIFF 22 || CLASSES and consumers in making purchase decisions, and is fundamental to the decision 23 |} to purchase goods or services from one seller or another. 24 87. Had the DEFENDANT disclosed this material information regarding the 25 || presence, existence, and function of the manner in which they managed, adjusted, sold and 26 || handled their goods, products and services PLAINTIFF and the PLAINTIFF CLASS! 27 || would not have purchased the goods and /or services from the DEFENDANT and/or their 28 || websites. poveeae 25. CLASS ACTION COMPLAINTwae 88. PLAINTIFF and other Class members relied upon the DEFENDANT'S | misrepresentations to their detriment. 89. The DEFENDANT’S failure to disclose these material facts to PLAINTIFF and the PLAINTIFF CLASSES, are omissions and concealments of material fact that constitute unfair, deceptive, and misleading business practices in violation of Civil Code § 1770 (a). 90. The DEFENDANTS’ deceptive acts and omissions occurred in the course of selling a consumer product or service and have occurred continuously through the filing of this Complaint. 91. Asa direct and proximate result of the CLRA DEFENDANTS? violation of Civil Code §§ 1770, et seq., PLAINTIFF and the PLAINTIFF CLASSES other Class members have suffered irreparable harm. PLAINTIFF, on behalf of themselves and on behalf of a similarly situated Class of consumers, seek damages appropriate_and injunctive relief. 92, DEFENDANT violated and continues to violate the CLRA by engaging in the following deceptive practices proscribed by California Civil Code § 1770(a) in transactions with PLAINTIFF and PLAINTIFF CLASSES which were intended to result in, and did result in, the sale of insurance policies and services in violation of the following subsections: {@) In violation of Section 1770 (@)(S) the CLRA DEFENDANT has represented that the purchase of its products and services have characteristics, uses, benefits, or quantities which they do not have; (6) In violation of Section 1770 (a)(14), the CLRA DEFENDANT has represented that the use of its services confers or involves rights, remedies, or obligations which it does not have or involve, or which are prohibited by law (@ In violation of Section 1770 (a)(14), the CLRA DEFENDANT has represented that the purchase of its products confers or involves -26- CLASS ACTION COMPLAINTrete rights, remedies, or obligations which it does not have or involve, or which are prohibited by law. (€) _ In violation of Section 1770 (a)(7) representing that the products and services were of a particular standard, quality or grade when they were not; (0) In violation of Section 1770 (a)(9) advertising goods or services with intent not to sell them as advertised; (g) In violation of Section 1770 (a)(16) representing that the subject of a transaction has been supplied in accordance with a previous representation when it has not; (h) _Inviolation of Section 1770 (a)(17) representing that PLAINTIFF and the PLAINTIFF CLASSES will receive a rebate, discount or other economic benefit where the earning of the benefit is contingent on an event to oceur subsequent to the consummation of the transaction; and (i) In violation of § 1770 (a)(18) misrepresenting that its agents have authority to negotiate the final terms of the transaction with PLAINTIFF and the PLAINTIFF CLASSES. 93. At least 30 days before filing suit under the CLRA, PLAINTIFF gave DEFENDANT aotice of the violation and demand that DEFENDANT “correct, repair, replace or otherwise rectify” the prohibited practices, in writing and sent by certified mail, return receipt requested, to the place where the transaction occurred, or to the potential DEFENDANT'S principal place of business within California (Cal. Civ. Code § 1782(a)(2) 94. DEFENDANT failed to respond to PLAINTIFF'S demand within 30 days of the notice, pursuant to § 1782(d) of the CLRA, and as such PLAINTIFF and the PLAINTIFF CLASSES are requesting actual damages, plus punitive damages, interest and attorneys’ fees. Additionally, PLAINTIFFS seek to recover up to $ 5,000 for each of them, and for each eligible Class Member as provided for under § 1780(b) of the CLRA. 2 CLASS ACTION COMPLAINTneve 95. DEFENDANT has not attempted to comply with a consumer's remediation demand (Cal. Civ. Code § 1782(3) served via Certified Mail on June 1, 2010. 96. PLAINTIFF and the PLAINTIFF CLASSES allege that damages are appropriate under the circumstances as (1) the violations and or conduct alleged was intentional; (2) the conduct did not result from a bona fide error; and (3) despite being provided the time to do so, DEFENDANT has not made an appropriate correction, repair, or replacement, or provided another remedy. 97. DEFENDANT continues to violate Civil Code section 1770(a)(14), and (19), and PLAINTIFF and PLAINTI CLASSES. request that the Court enjoin DEFENDANT from. continuing the acts, omissions, and misrepresentations challenged in this Complaint 98. PLAINTIFF will amend this Complaint to allege and demand compensatory, general, and punitive damages upon PLAINTIFF'S compliance with Civil Code section 1782(a). FOURTH CAUSE OF ACTION VIOLATION OF BUSINESS AND PROFESSIONS CODE § 17500 ET SEO. [FALSE ADVERTISING LAW) (Against All DEFENDANTS) 99. PLAINTIFF and PLAINTIFF CLASSES re-allege and incorporate by reference all of the allegations in the preceding paragraphs of this complaint as though fully set forth herein, 100. At all times relevant herein, DEFENDANT has committed acts of untrue and misleading advertising, as defined by BUSINESS AND PROFESSIONS Cove section 17500 er seq., by engaging in the acts and practices alleged above which were committed with the intent to induce the public to enter into transactions which would profit DEPENDANT. Specifically, DEFENDANT advertised that “[DEFENDANT] could not imagine another time in our history when it was more important for Americans to consider adding a recognized safe haven asset to their portfolios.” In addition, DEFENDANT has had numerous paid celebrities to recommend that the viewers and listeners invest in gold to protect themselves from devaluing of the dollar. 28. CLASS ACTION COMPLAINT101, DEFENDANT has instituted a massive marketing campaign aimed at PLAINTIFF and PLAINTIFF CLASSES, including looking no further than paying celebrities such as Glenn Beck, Fred Thompson, Dennis Miller, Mark Levin, Laura Ingraham, Lars Larson, Michael Smerconish, Monica Crowley, and Mike Huckabee to be its spokesperson and/or recommend the DEFENDANT on their shows. 102. This advertising has misled and deceived PLAINTIFF and others similarly situated into purchasing goods from GOLDLINE because a customer would be led to believe that GOLDLINE would not engage in deceptive business practices wherein GOLDLINE, charges customers a “commission” fee to which they do not agree, as well as overcharging its customers for its goods. 103. PLAINTIFF and PLAINTIFF CLASSES were intentionally induced to enter into ‘an agreement with GOLDLINE by false and misleading advertisements on the radio, and via the television, 104, DEFENDANT failed to notify PLAINTIFF and PLAINTIFF CLASSES of these fees thereby inducing PLAINTIFF and PLAINTIFF CLASSES into continuing to enter into sales agreements with GOLDLINE. 105. DEFENDANT knew, or which by the exercise of reasonable care should have known, that such statements are and were untrue or misleading. 106. The acts of untrue and misleading advertising by DEFENDANT alleged above present a continuing threat to the public in that DEFENDANT is continuing to engage in these practices and will not cease doing so unless and until an injunction is issued by the Court. 107. Asa result of the aforementioned acts, DEFENDANT has received and continues to wrongfully collect and hold revenues from its wrongful business practices, including interest and other revenues. Such revenues obtained by DEFENDANT through the use of unfair or deceptive practices should be subject of an order of restitution and/or disgorgement. FIFTH CAUSE OF ACTION VIOLATION OF BUSINESS AND PROFESSIONS CODE § 17200 ET SEQ. 29 CLASS ACTION COMPLAINT5730 nevi & Sear. " 12 1B 4 16 7 18 19 20 2 22 23 24 25 26 a 28 [Wnfair COMPETITION LAW] (Against All Defendants) 108. PLAINTIFF and PLAINTIFF CLASSES re-allege and incorporate by reference all of the allegations in the preceding paragraphs of this complaint as though fully set forth herein, 109. Beginning on a date unknown to PLAINTIFF and PLAINTIFF CLASSES but ‘in the four years preceding the filing of this complaint, DEFENDANT sued herein has engaged in, is engaged in, and proposes to engage in unfair competition, as that term is defined in Business and Professions Code section 17200. As used in this Complaint and in Section 17200, "unfair" means (1) an unlawful, unfair or fraudulent business act or practice; (2) unfair, deceptive, untrue or misleading advertising; and/or (3) an act prohibited by Chapter 1 (commencing with Section 17500) of Part 3 of Division 7 of the Business and Professions Code, This conduct is actionable pursuant to Business and Professions Code sections 17200, 17203. UNLAWFUL ACTS AND PRACTICES A. Violation Of Civil Code Section 1’ (14), 110, DEFENDANT'S acts and practices are unlawful in that they violate Civil Code section 1770(a}(5),(7),9), (14), (16), (17), (18) and (19) and consequently, constitute an unlawful business act or practice within the meaning of Business and Professions Code section 17200 et seq. BO iness And Professions Code Section 17500 111, DEFENDANT'S acts and practices are unlawful in that they violate Business and Professions Code sections 17500 ef seq., and consequently, constitute an unlawful business act or practice within the meaning of Business and Profes ‘UNFAIR ACTS AND PRACTICES 112, DEFENDANT'S acts and practices are unfair, even if not unlawful, in that ns Code section 17200. DEFENDANT fails to disclose that the actual value of its goods sold are much lower than the purchase price. -30- CLASS ACTION COMPLAINT8 a 113. DEFENDANT'S acts and pra DEFENDANT fails to disclose that this counts as a “commission” fee, even though it is 's are unfair, even if not unlawful, in that disclosed nowhere. 114, DEFENDANT'S acts and practices are unfair, even if not unlawful, in that DEFENDANT : (1) misrepresented the true nature and value of those products in televi on and radio advertisements and during telephone conversations between its employees and PLAINTIFF AND PLAINTIFF CLASSES; (2) its employees claimed that they were “Investment Advisors” or “Financial Ad rs” and gave investment advice during telephone conversations with PLAINTIFF and PLAINTIFF CLASSES, both of which implied its employees had a fiduciary responsibility to get PLAINTIFF and PLAINTIFF CLASSES the ‘greatest return on thei ‘investment”; (3) it trained its employees to follow a script designed to conjure fears about the current state of the economy, the volatility of the U.S. dollar, and an outright financial collapse during telephone conversations with PLAINTIFF and PLAINTIFF CLASSES; (4) its employees guaranteed that PLAINTIFF and PLAINTIFF CLASSES could not lose their investments in GOLDLINE products; (5) its employees misrepresented to PLAINITFF and PLAINTIFF CLASSES that investing in numismatic coins is a better investment than investing in bullion because the U.S. government can confiscate bullion, and that the price of bullion will fluctuate while the price of numismatic coins will only increase; and (6) its employees guaranteed that GOLDLINE. would buy back its products from PLAINTIFF and PLAINTIFF CLASSES at the same or better prices depending on the market, 113, Inengaging in conduct that constitutes unfair competition, DEFENDANT sued herein has acquired money or property from members of the general public. Pursuant to Business & Professions Code section 17203, PLAINTIFF is empowered to act as a Private ‘Attorney General to enjoin such conduct in the future and to compel DEFENDANT to restore to the members of the general public any money or property that it may have acquired as a result of any act which constitutes unfair competition or to obtain disgorgement of any profits which the DEFENDANT may have obtained as a result of this conduct. It is impossible for ole CLASS ACTION COMPLAINTsyeete0 the PLAINTIFF to determine the exact amount of money due to the general public without a detailed review of DEFENDANT'S books and records. Accordingly, PLAINTIFF seeks, among other things, an accounting and/or the appointment of a receiver. 114, PLAINTIFF and PLAINTIFF CLASSES have suffered injury in fact; she, along with those sir larly situated, suffered an invasion of a legally protected interest that is (a) concrete and particularized, and (b) actual or imminent, not conjectural or hypothetical. PLAINTIFF and PLAINTIFF CLASSES, along with those similarly situated, had a legally protected interest in being disclosed of all hidden fees, including a “commission’ fee. 115, Further, PLAINTIFF and PLAINTIFF CLASSES have lost money and/or property as a result of such practices and unfair competition. 116. The unlawful, unfair, and fraudulent business practices as described above present a continuing threat to members of the general public. DEFENDANT persists and continues to engage in these practices and will not cease doing so unless and until an injunction is issued by this Court. 117, “As a direct and proximate result of the aforementioned acts, DEFENDANT received and continues to hold monies paid by PLAINTIFF and PLAINTIFF CLASSES and other consumers, including interest and other revenues generated from their practices within California. Such revenues were obtained by DEFENDANT through the use of unlawful, unfair, or fraudulent practices and such amounts should be the subject of an order of restitution and/or disgorgement. PRAYER WHEREFORE, the PLAINTIFFS and PLAINTIFF CLASSES DEMAND A JURY TRIAL and pray that: ON THE FIRST CAUSE OF ACTION: (a) For Certification of the PLAINTIFF CLASSES; (6) Certification of the proposed Class pursuant to Code of Civi Procedure § 382 and Civil Code § 1780, et seq.; (©) Designation of PLAINTIFF as representative of the proposed 32 CLASS ACTION COMPLAINTSoc er.d 12 13 4 15 16 7 18 19 20 21 22 23 24 25 26 27 28 @) ) ® @) (hy @ Class and designation of PLAINTIFF'S counsel as Class counsel; Judgment in favor of PLAINTIFF and the Class members and against DEFENDANT; For general damages for breach of contract on the policy; For incidental damages for breach of contract in an amount to be determined at trial, costs allowed by law, plus. prejudgment terest; For an award of attorney's fees as authorized by the provisions of Code of Civil Procedure § 1021.5, as authorized under the “common fund” doctrine, and as authorized by the “substantial benefit” doctrine; For prejudgment interest according to proof; and, For such other relief as the Court may deem proper. ON THE SECOND CAUSE OF ACTION: @) ) © @ @ 10) For Certification of the PLAINTIFF CLASSES; For actual and compensatory damages in an amount to be proven at trial; For costs of the suit and interest at the legal rate; For an award of attorney's fees as authorized by the pro} ns of, ‘ode of Civil Procedure § 1021.5, as authorized under the “common fund” doctrine, and as authorized by the “substantial benefit” doctrine; For prejudgment interest according to proof; and, For such other relief as the Court may deem proper. ON THE THIRD CAUSE OF ACTION: @) (b) For Certification of the PLAINTIFF CLASSES; Certification of the proposed Class pursuant to Civil Code § 1780, et seq.; “336 (CLASS ACTION COMPLAINT(©) (d) ©) 0) () (hy @ @ ON THE FOURTH CAUSE OF ACTIO! fa) Designation of PLAINTIFF as representative of the proposed Class and designation of PLAINTIFF'S counsel as Class counsel; Judgment in favor of PLAINTIFF and the Class members and against DEFENDANT; For the greater of actual or compensatory damages according to proof or one thousand dollars ($1,000.00) pursuant to California Civil Code § 1780; For restitution and injunctive relief pursuant to California Civil Code §1780 to prevent DEFENDANT from engaging in the violations of Civil Code § 1770 including but not limited to subsections (a) as set forth in this Complaint; For punitive damages according to proof pursuant to California Civil Code § 1780; and For any Class Member who is a senior citizen or a disabled person, an award of five thousand dollars ($5,000.00). Payment of costs and attorney fees from the amount recovered for the common benefit of the class and/or as private attorney general and/or payment of costs and attorney fees directly from DEFENDANT pursuant to Civil Code § 1780(4); For any other and further relief the Court may deem proper. For any orders necessary to restore to PLAINTIFF and the class any money or property that DEFENDANT may have acquired as a result of any act or practice constituting unfair competition under Business and Professions Code section 17200 and/or false or deceptive advertising under Business and Professions Code section 17500, including the appointment of a receiver pursuant 34 CLASS ACTION COMPLAINT(b) ©) @ () oO to Business_and Professions Code section 17203 and section 17535; For preliminary and permanent injunctive relief preventing DEFENDANT from engaging in any act or practice constituting unfair competition under Business and Professions Code secti nm 17200 and/or false or deceptive advertising under Business_and Professions Code section 17500, and requiring DEFENDANT to take any acts needed to prevent future deception based upon DEFENDANT'S prior misconduct; For an award of attorney's fees as authorized by the provisions of. Code of Civil Procedure § 1021.5, as authorized under the “common fund” doctrine, and as authorized by the “substantial benefit” doctrine; For costs of the suit; For prejudgment erest according to proof; and, For such other relief as the Court may deem proper... ON THE FIFTH CAUSE OF ACTION: (@) b) © @) © For the equitable, injunctive and dectaratory relief requested; That DEPENDANT be found to have engaged in unfair competition in violation of section 17200 et seq. of the California Bi id i ‘That DEFENDANT be ordered and enjoined to make restitution to each Class due to their unfair competition, pursuant to California Business and Professions Code §§ 17203 and 17204; That DEFENDANT be enjoined from continuing the unlawful course of conduct alleged herein; ‘That DEFENDANT further be enjoined to cease and desist from unfair competition in violation of section 17200 et seq. of the 35- CLASS ACTION COMPLAINTsaovas ie ScwerHlaueon ul 12 1B 14 16 7 18 19 20 2 22 23 24 25 26 27 28 California Business and Professions Code; and (That DEFENDANT be enjoined from further acts of restraint of trade or unfair competition. ‘ON ALL CAUSES OF ACTIO! (a) For costs of suit herein and allowed by law; (6) For such other further relief as the Court deems just and proper. Dated: December 31, 2010 QUINTILONE & ASSOCIATES RICHARD E. QUINTILONE Hy, THOMAS J. MEENA, Attorneys for PLAINTIFF EVELYN LEE, on behalf of herself and on behalf of a Class of all other persons similarly situated. 36+ CLASS ACTION COMPLAINTMike Huckabee Mike Huckabee: I bet you're concemed about the economy and the depreciation of the dollar just like me. That's why people are diversifying their portfolio with gold as a way to protect against a falling dollar and future inflation. Goldline has been helping people acquire gold for fifty years. ‘The people at Goldline will explain just how easy it is for you to buy gold that’s, delivered directly to you. Call Goldline for a free investor kit that explains why diversifying. your portfolio with gold might be right for you and ask how you can receive free shipping on Your first order, 800-285-8985 ask them about the different payment options and read their important risk information about buying gold to see if it’s right for you. That’s 800-285-8985. Tell them Mike Huckabee sent you and you'll receive the American Advisor newsletter with the free investor kit. Call Goldline today. 800-285-8985, 800-285-8985, EL Asyriie Hora» Att olin pa» Testa vr sina)» Recon by Me etaen MIKE HUCKABEE Former governor and Prsidetial candidate Mike Huckaheo is the host of Ropert a day ratio Teper tnt ate daly across th com an saws and alk stations, Governor Huckabee was tha gover of Arkansas om 1098-2007 and a Republican candidate for President In2008. In edation to hoetng Te Huckabee Roper, Governor Huckabee ls the host of HUCKABEE on the Fox Newe Channel. Ho the author of sx becks, eluding his recent New York Tines bestseller, Do the Fight Thing. Governor Huckabee also recently formed HuckP ac to asst Repubicane running for office alionwise. ‘Huckabee is recognized as» nafonl leer, having been honored by several renowned pubfcaion and orgaizalons for is ‘humerous accemplshrrents, Governing Mapazine named tim a8 ore of is Publc Os ofthe Year fr 2005, Tine Magazine Fronored harm aa ne of the ve beet governor in Amaia, and ter in tha sare year, Huckabee ecoWed the American Assoclation of Retired Pereor's impact Award In 2007, he wes prosared wth the Music for if Award bythe National Assocation of Mic Morshante (NAMM for his eanaliment io musi edvcaton Huckabee's effet o improve his ovn heath have recived national attention, Diagnosed with Type Il dlabotes in 2003, be fost 110 pounds. Barely two years leet, ba completed out marathons: Me 2005 end 2008 Uile Rock Marathons, the Marine Corps Marathon {nd the ING New York Gly Maran, As @raoul otis accomplehmerts, The Road Runners Cub of Amerca named him bs South ‘Rapion Runner ofthe Year and USA track & Field has named Mintel Abvoto of tha Week for he country. “The Hucksbeo Report ars tive tm daly onthe adel Mada Network, “Radio show sponsored by Goldina. http://w. goldline.com/testimonials-mike-huckabeerape, Fred Thompson Fred Thompson: ur country is experiencing the worst economic crisis since the Great Depression. Stocks and real estate have lost much of their value and the goverument is spending trillions of dollars in a desperate attempt to bail us out. In these tough times, I believe that you should own gold. Gold offers diversification so all your eggs aren't in one basket and gold is cone of the few investments that have gone up every year since 2001. My choice for gold is Goldline. Goldline has been in business since 1960. I recommend you call Goldline today at 877-346-COIN. Ask them how you can acquire gold that is shipped directly to you. That's gold ‘you can hold in your hand, not some paper promise. Mention my name and receive free shipping, ‘on your first order. The number to call is 877-346-2646. Ask about the different payment options that might be right for you. Don’t wait to get this valuable information. You owe it to youself to call Goldline at 877-346-COIN. ‘That's 877-346-2646. Tell them Fred and Jeri ‘Thompson sent you