NEW YORK STATE SUPREME COURT NEW YORK COUNTY

CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.)

NYSCEF DOC. NO. 1

INDEX NO. UNASSIGNED RECEIVED NYSCEF: 05/21/2019

NEW YORK STATE SUPREME COURT

NEW YORK COUNTY

---------------------------------------------------------------- X

CHRISTOPHER GEORGE , JESSICA CHANDRA, :

LISA JAME, CHELSEA MALEY, APRIL

:

BODDIE, MICKAEL LOUIS, EDUARDO LEACH, :

JOSH FOLAN, LOGAN VAIRO, and BASMA

:

ATTIEH, on behalf of themselves and a class of :

similarly situated individuals,

:

:

Plaintiffs,

:

:

v.

:

:

STARBUCKS CORPORATION d/b/a

:

STARBUCKS COFFEE COMPANY,

:

:

Defendant.

:

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Index No.: CLASS ACTION COMPLAINT

Jury Trial Demanded

Plaintiffs Christopher George, Jessica Chandra, Lisa Jame, Chelsea Maley, April Boddie,

Mickael Louis, Eduardo Leach, Josh Folan, Logan Vairo, and Basma Attieh , individually, and

on behalf of a proposed Class (the "Class" or "Plaintiffs"), by and through their undersigned

counsel, as and for their Complaint against Defendant Starbucks Corporation d/b/a Starbucks

Coffee Company ("Starbucks" or "Defendant"), hereby allege as follows:

PRELIMINARY STATEMENT

1. Starbucks has built itself into one of the most recognizable brands in the world by

selling an image of a company that cares about its products and its customers -- and it asks its

customers to pay a hefty premium for its products as a result. The reality is a far different story.

Starbucks stores throughout Manhattan have for many years been permeated with a toxic

pesticide called Dichlorvos (2,2-dichlorovinyl dimethyl phosphate or "DDVP"), which is highly

poisonous and completely unfit for use in proximity to food, beverages and people. Starbucks

knows about the poisonous qualities of DDVP and knows that it has been used in Starbucks'

This is a copy of a pleading filed electronically pursuant to New York State court rules (22 NYCRR ?202.5-b(d)(3)(i))

which, at the time of its printout from the court system's electronic website, had not yet been reviewed and

approved by the County Clerk. Because court rules (22 NYCRR ?202.5[d]) authorize the County Clerk to reject

filings for various reasons, readers should be aware that documents bearing this legend may not have been accepted for filing by the County Clerk.

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stores throughout Manhattan, but has neither taken appropriate action to stop its use nor

informed customers about the dangerous conditions to which they have been unwittingly being

exposed. In doing so, Starbucks has knowingly put its customers' well-being at risk.

2. DDVP is an active ingredient emitted into the air by products called "No-Pest

Strips," which are only intended to be used in unoccupied structures to rid such structures of

vermin, bugs and insects. However, they are explicitly not to be used anywhere human beings

are present, and especially in situations where the pesticide could come into contact with food

and/or drinks. The label on these products clearly warns:

"Do not use in the food/feed areas of food/feed processing or food/feed manufacturing or food/feed service establishments," and "Do not use in kitchens, restaurants or areas where food is prepared or served."

3. The Center for Disease ("CDC") control has cautioned that:

"Dichlorvos can chemically react with an important enzyme in your brain and nerves called acetylcholinesterase and stop them from working properly. When this happens, signals sent between your nerve cells and to your muscles are disrupted."

4. The CDC has further warned that symptoms from DDVP exposure include:

"loss of bladder control," "muscle tremors," "labored breathing," "nausea," "anxiety," "diarrhea," "muscle weakness," "convulsions" and paralysis" and that more severe exposure can even "result in coma, inability to breathe and death."

5. On numerous occasions over the last several years, Starbucks' employees and

third-party exterminators have informed regional and district management ? both verbally and in

writing ? about the improper and dangerous use of No-Pest Strips throughout stores in

Manhattan. Nonetheless, despite these complaints, Starbucks has continued to allow No-Pest

Strips to be used in its Manhattan stores ? left to contaminate the food and beverages that

This is a copy of a pleading filed electronically pursuant to2New York State court rules (22 NYCRR ?202.5-b(d)(3)(i))

which, at the time of its printout from the court system's electronic website, had not yet been reviewed and

approved by the County Clerk. Because court rules (22 NYCRR ?202.5[d]) authorize the County Clerk to reject

filings for various reasons, readers should be aware that documents bearing this legend may not have been accepted for filing by the County Clerk.

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NYSCEF DOC. NO. 1

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Starbucks sells to consumers as the most premium products available. Needless to say, Starbucks has closely held this information and has not disclosed to the public that DDVP has poisoned the environment in its stores.

JURISDICTION AND VENUE 6. The Court has personal jurisdiction over Defendants pursuant to Civil Practice Law and Rules ("CPLR") ? 302. Starbucks is authorized to conduct business in New York, regularly conducts business within the state and derives a substantial portion of its revenue from New York State. Moreover, a substantial portion of the tortious acts and omissions giving rise to this action took place in New York, NY. By way of example only, Starbucks has over 100 retail stores in Manhattan. Plaintiffs all purchased Starbucks products at Starbucks stores in Manhattan throughout the relevant time period, and, upon information and belief, were exposed to the toxic chemical described below. 7. Venue is proper in this Court pursuant to CPLR ?503 because a substantial part of the events and omissions giving rise to this action occurred in this district and because Plaintiffs George, Chandra, Jame, and Boddie are all residents of New York, NY.

PARTIES 8. Plaintiff Christopher George is an adult resident of New York, NY. 9. Plaintiff Jessica Chandra is an adult resident of New York, NY. 10. Plaintiff Lisa Jame is an adult resident of New York, NY. 11. Plaintiff Chelsea Maley is an adult resident of Lindenhurst, NY. 12. Plaintiff April Boddie is an adult resident of New York, NY. 13. Plaintiff Mickael Louis is an adult resident of Brooklyn, NY. 14. Plaintiff Eduardo Leach is an adult resident of Brooklyn, NY.

This is a copy of a pleading filed electronically pursuant to3New York State court rules (22 NYCRR ?202.5-b(d)(3)(i))

which, at the time of its printout from the court system's electronic website, had not yet been reviewed and

approved by the County Clerk. Because court rules (22 NYCRR ?202.5[d]) authorize the County Clerk to reject

filings for various reasons, readers should be aware that documents bearing this legend may not have been accepted for filing by the County Clerk.

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NYSCEF DOC. NO. 1

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15. Plaintiff Josh Folan is an adult resident of Playa Del Rey, CA. 16. Plaintiff Logan Vairo is an adult resident of Bluffton, SC. 17. Plaintiff Basma Attieh is an adult resident of Queens, NY. 18. Starbucks is a foreign business corporation organized and existing under the laws of the State of Washington with a principal place of business at 2401 Utah Avenue South, Seattle, Washington 98134. Starbucks owns and operates a global chain of coffee shops comprising over 13,000 stores in more than 70 countries.

FACTUAL ALLEGATIONS I. BACKGROUND

15. Coffee is one of the most popular drinks in the word, and particularly in the United States, where more than 60 percent of the population drinks at least one cup daily.1 This makes the United States the biggest coffee consuming nation in the world, drinking approximately 400 million cups of coffee per day.2 The United States is home to more than 35,000 retail coffee shops.3

16. In 1971, Starbucks was founded as a fledgling operation based on the inspiration of three partners who saw an opportunity to provide high quality coffee to an otherwise stale market for gourmet coffee.4 However, it was not until 1987--when Howard Schulz purchased what was then a six store operation--that Starbucks started its famous ascent to the top of this

1



explain-pretty-much-everything-about-coffee/?utm_term=.b955f7397784 (last visited May 14,

2019)

2

(last visited May 14, 2019)

3



45.4bn-valuation-in-2018 (last visited May 14, 2019)

4

(last visited May 14, 2019)

This is a copy of a pleading filed electronically pursuant to4New York State court rules (22 NYCRR ?202.5-b(d)(3)(i))

which, at the time of its printout from the court system's electronic website, had not yet been reviewed and

approved by the County Clerk. Because court rules (22 NYCRR ?202.5[d]) authorize the County Clerk to reject

filings for various reasons, readers should be aware that documents bearing this legend may not have been accepted for filing by the County Clerk.

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NYSCEF DOC. NO. 1

INDEX NO. UNASSIGNED RECEIVED NYSCEF: 05/21/2019

ultra-competitive market. In his first year at the helm, Mr. Schulz generated $1.3 million in revenue.5

17. Within only a few years, Mr. Schulz had transformed Starbucks and would soon thereafter forever change the way Americans drink coffee. By 1989, Starbucks had grown to 46 domestic store locations across the Northwest and Midwest. By 1992, when Starbucks held its initial public offering ("IPO"), it had 140 U.S. locations and more than $73.5 million in revenue. The IPO raised $25 million by selling 12 percent of the Company, putting its total valuation at approximately $271 million.6

18. Of course, that was only the beginning of Starbucks' road to coffee domination. As of 2018, Starbucks had approximately 13,000 stores worldwide, served approximately 3.1 billion customers, generated $24.7 billion in revenue and employed more than 275,000 employees.7 II. STARBUCKS' CLAIMS ABOUT THE "STARBUCKS EXPERIENCE"

19. Starbucks is widely used as a case study for its ability to market itself in a highly competitive industry. Starbucks has implemented a relentless and widespread campaign to convince the public that it provides premium products in a superior environment relative to other retail coffee, beverage and food sellers.

20. In fact, Starbucks has coined a term to describe the premium environment it sells its customers--the "Starbucks Experience." As the Company has explained in its annual SEC filings:

5

(last visited May 14, 2019)

6

Id.

7



9302018x10xk.htm (last visited May 14, 2019)

This is a copy of a pleading filed electronically pursuant to5New York State court rules (22 NYCRR ?202.5-b(d)(3)(i))

which, at the time of its printout from the court system's electronic website, had not yet been reviewed and

approved by the County Clerk. Because court rules (22 NYCRR ?202.5[d]) authorize the County Clerk to reject

filings for various reasons, readers should be aware that documents bearing this legend may not have been accepted for filing by the County Clerk.

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CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.)

NYSCEF DOC. NO. 1

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[T]he Starbucks Experience is built upon superior customer service and a seamless digital experience as well as clean and wellmaintained stores that reflect the personalities of the communities in which they operate, thereby building a high degree of customer loyalty.8

21. Without any ambiguity, Starbucks holds out to its own shareholders in publicly

available documents that the cleanliness and well-maintenance of its stores builds customer

loyalty and is an integral part of what it offers to its customers.

22. The cleanliness of its stores is so critical because Starbucks actively urges

customers to not merely buy products there, but to congregate in its stores. Starbucks markets its

stores as a "Third Place" --a place on par with their homes and offices where its customers gather and build a sense of community.9 Starbucks states:

We are committed to creating a culture of warmth and belonging where everyone is welcome. This policy is intended to help maintain the third place environment in alignment with our mission "to inspire and nurture the human spirit ? one person, one cup and one neighborhood at a time."10

23. Of course, Starbucks also attempts to convince the public that it sells premium

products made from premium ingredients. According to Starbucks, its care in selecting only the

best ingredients ensures that its food and beverages not only taste good, but substantively

improve its customers' well-being.

24. For instance, but only by way of example, as the Company has explained in one

advertisement, its coffee contains the "Best Coffee for the Best You" and the "Taste of

Inspiration."

8

Id. (emphasis added)

9

(last visited May 1, 2019)

10 (last visited May

1, 2019)

This is a copy of a pleading filed electronically pursuant to6New York State court rules (22 NYCRR ?202.5-b(d)(3)(i))

which, at the time of its printout from the court system's electronic website, had not yet been reviewed and

approved by the County Clerk. Because court rules (22 NYCRR ?202.5[d]) authorize the County Clerk to reject

filings for various reasons, readers should be aware that documents bearing this legend may not have been accepted for filing by the County Clerk.

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25. Starbucks emphasizes that the quality of its products and ingredients sets it apart from its competitors. Starbucks tells its customers that any product other than its own is nothing short of a "compromise:"

26. Starbucks also promises to oversee the entire production process, from farming to distribution, to ensure that the Company's products contain only those premium ingredients:

This is a copy of a pleading filed electronically pursuant to7New York State court rules (22 NYCRR ?202.5-b(d)(3)(i))

which, at the time of its printout from the court system's electronic website, had not yet been reviewed and

approved by the County Clerk. Because court rules (22 NYCRR ?202.5[d]) authorize the County Clerk to reject

filings for various reasons, readers should be aware that documents bearing this legend may not have been accepted for filing by the County Clerk.

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Starbucks is committed to selling the finest whole bean coffees and coffee beverages. To ensure compliance with our rigorous coffee standards, we control coffee purchasing, roasting and packaging and the global distribution of coffee used in our operations.11

27. Starbucks maintains that this process has led to "an excellent reputation globally

for the quality of our products, for delivery of a consistently positive consumer experience and for our global social impact programs."12

28. As one popular Starbucks marketing campaign extolls, "It's Not Just Coffee. It's

Starbucks" and attempts to portray Starbucks coffee as uniquely premium:

29. From the quality of the ingredients to the process in which its products are made, Starbucks promises its customers the "PERFECT" coffee and a coffee-drinking experience that a customer "won't find [] in any other cup of coffee:"

11

Form-10-K.pdf (last visited May 14, 2019)

12

Id.

This is a copy of a pleading filed electronically pursuant to8New York State court rules (22 NYCRR ?202.5-b(d)(3)(i))

which, at the time of its printout from the court system's electronic website, had not yet been reviewed and

approved by the County Clerk. Because court rules (22 NYCRR ?202.5[d]) authorize the County Clerk to reject

filings for various reasons, readers should be aware that documents bearing this legend may not have been accepted for filing by the County Clerk.

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