second 17200 lawsuit against ggu golden gate university philip friedman re false advertising -- Golden Gate University (GGU) lawsuit re misrepresentation

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Date Posted: 15:51:55 08/22/04 Sun
Author: Don
Subject: second 17200 lawsuit against ggu golden gate university philip friedman re false advertising

PLAINTIFF (�Plaintiff�) submits the instant First Amended Complaint (�Complaint�) against Susan Rutberg (�Rutberg�), Golden Gate University (�GGU�), Susan Schechter (�Schechter�), Philip Friedman (�Friedman�) and Does 3 - 20 (collectively, the �defendants�), and alleges as follows:

INTRODUCTION
1. GGU is a not-for-profit private entity. For monetary consideration, GGU provides secondary education in various areas such as taxation, law and business. GGU has six locations throughout California, with its main campus located in San Francisco. GGU also operates an English Language Institute and a cyber-campus. GGU�s students come from a pool of applicants from all over the United States and the world.
PARTIES
2. The suit incorporates various allegation of misconduct. In some of the allegations and causes of action, Plaintiff proceeds under California Business & Professions Code section 17200, et seq. (�Section 17200�), and does so for the benefit of the general public and in a representative capacity. As such, Plaintiff alleges no harm or damages whatsoever regarding himself, individually, with respect to those allegations and causes of action. Some of the allegations and causes of action reference incidents relating to and damages suffered by him as an individual.
3. The true names and capacities of defendants sued herein under California Code of Civil Procedure section 474 as Does 3 through 20 are unknown to Plaintiff, who therefore sues these defendants by such fictitious names. Plaintiff will seek to amend this Complaint and include these Doe defendants� true names and capacities when they are ascertained. Each of the fictitiously named defendants is responsible in some manner for the conduct alleged herein.
4. Plaintiff is informed and believes, and thereon alleges, that GGU is, and at all times relevant to this action was, an educational institution authorized to conduct business in California.
5. Plaintiff is informed and believes, and thereon alleges, that Rutberg is an individual who serves, and at all times relevant to this action served, as a professor at GGU.
6. Plaintiff is informed and believes, and thereon alleges, that Schechter is an individual who serves, and at all times relevant to this action served, as interim Dean of Student Services at GGU.
7. Plaintiff is informed and believes, and thereon alleges, that Friedman is an individual who serves, and at all times relevant to this action served, as the president at GGU.
8. At all relevant times herein, each defendant was and is the agent of each of the remaining defendants, and in doing the acts hereinafter alleged, was acting within the course and scope of such agency. Each defendant ratified and/or authorized the wrongful acts of defendants, and each of them.
FACTUAL BACKGROUND
9. GGU maintains a web-site (www.ggu.edu) on which, among other things, it advertises and promotes its services to prospective students. GGU�s web-site functions as an important marketing tool for the school, and receives approximately 8,000 visits or �hits� per month. Visitors to the web-site initially encounter the home-page. The home-page directs visitors to other areas of the site when they click on various icons (i.e., �Admissions,� �News and Events,� �Schools and Programs,� �Locations,� �About GGU,� and �University Services�). Prospective students from all over the United States and the world visit the web-site in order to receive information about the school.
10. One icon on the GGU web-site is entitled �Locations.� By clicking on said icon, a web-page which purports to give information about various GGU campuses is displayed. On the page which describes GGU�s San Francisco location (Exhibit 1), which is read by many prospective students from all over the world, the following statement is made: �So come visit our campus -- 14 million people do each year -- we promise you will not get lost in the crowd.� (Note: the current Exhibit A is a newer version of the statement and replaces a similar, but different version that was on GGU�s web-site.)
11. The above statement claiming that 14 million people visit GGU�s San Francisco campus each year is false.
12. 14 million people do not visit Golden Gate University San Francisco Campus each year.
12.5 In fact, Golden Gate University does not know how many people visit the San Francisco each year.
13. The numbers of students who attend GGU�s San Francisco Campus, both full and part-time, is approximately 2000 individuals.
14. In fact, under penalty of perjury, GGU (via Mr. Bialik) on September 22, 2003 has already admitted that 14 million people do not, in fact, visit its San Francisco campus annually. Unfortunately, to date (June 9, 2004), GGU did not make any changes to its web-site correcting the inaccurate statement that 14 million people visit the campus annually, and this statement is still present on GGU�s web-site. (See Exhibit A.)
15. In fact, on June 12, 2003, Friedman testified under penalty of perjury that he would look into how many people visit GGU�s San Francisco Campus. At the time Mr. Friedman did not know how many people visit the campus each year despite the fact that the representation relating to 14 million visitors was already posted on GGU�s web-site.
FIRST CAUSE OF ACTION
(Violations of Section 17200, et seq. -- Against GGU and Friedman.)
16. Plaintiff incorporates by reference the allegations contained in Paragraphs 1 - 15 as though set out in full herein.
17. Section 17200 provides that �unfair competition shall mean and include any unlawful ... business act or practice.� (Section 17200, emphasis added.)
18. By creating the false impression, particularly to unsuspecting and uninformed students from foreign countries, that it is a huge campus similar to, for example, U.C. Berkeley and U.C.L.A., GGU and Friedman have engaged, and continues to engage to date, in unlawful business practices constituting unfair competition in violation of Section 17200.
19. Because the conduct described above is ongoing and continuing, and because the recovery of damages cannot adequately compensate for these wrongs, injunctive relief is appropriate to prevent further wrongful conduct by GGU and Friedman.
SECOND CAUSE OF ACTION
(Violation of Section 17200, et seq. - Fraudulent Business Practices -- Against GGU and Friedman)
20. Plaintiff incorporates by reference the allegations contained in Paragraphs 1 - 19 as though set out in full herein.
21. Section 17200 provides that �unfair competition shall mean and include any ... fraudulent business act or practice.� (Section 17200, emphasis added.)
22. Defendants have engaged in fraudulent business practices by virtue of making claims that are untrue and/or misleading.
23. Members of the public are likely to be deceived by virtue of the business practices described above into believing that GGU�s San Francisco Campus is a large and dynamic campus equivalent to, for example, U.C. Berkeley and UCLA. Thus, GGU and Friedman have engaged in fraudulent business practices constituting unfair competition in violation of Section 17200.
24. Because the conduct described above is ongoing and continuing, and because the recovery of damages cannot adequately compensate for these wrongs, injunctive relief is appropriate to prevent further wrongful conduct by GGU.
THIRD CAUSE OF ACTION
(Violation of Section 17500 et seq. - False Advertising -- Against GGU and Friedman)
25. Plaintiff incorporates by reference the allegations contained in Paragraphs 1 - 24 as though set out in full herein.
26. Section 17500, et seq., provides that �[i]t is unlawful for any person, firm, corporation, or association, or any employee thereof with intent directly or indirectly ... to perform services, professional or otherwise, or anything of any nature whatsoever or to induce the public to enter into any obligation relating thereto, to make or disseminate or cause to be made or disseminated before the public in this state...any advertising device ... including over the Internet, any statement ... concerning ... services, professional or otherwise, or concerning any circumstances or matter of fact connected with the proposed performance or disposition thereof, which is untrue or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading[.]�
27. GGU publicly disseminates advertising on its web-site which: (1) contains statements that are untrue and/or misleading; and (2) GGU and Friedman knew, or in the exercise of reasonable case, should have known, were untrue or misleading. GGU and Friedman have therefore engaged in false advertising within the meaning of Business & Professions Code section 17500, et seq.
28. Because the conduct described above is ongoing and continuing, and because the recovery of damages cannot adequately compensate for these wrongs, injunctive relief is appropriate to prevent further wrongful conduct by GGU.

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