District Judge Lorna G. Schofield


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L’Oréal USA Inc. and its subsidiary Matrix Essentials LLC make, advertise, and distribute shampoo, hair conditioner, and hair renewal spray products whose front labels prominently include the product name “Keratindose Pro Keratin+Silk.” Their back labels stated they were formulated with “Pro-Keratin+Silk.” Defendants’ web site states the products were formulated with Pro-Keratin and Silk. Dissatisfied with defendants’ subject products—found not to contain keratin—plaintiffs’ putative class suit alleged false representation. Except for their claim for unjust enrichment under New York and California law, district court denied dismissal of plaintiffs’ lawsuit. The claims in their complaint pleaded fraud with the particularity required of FRCP 9(b). It alleged defendants’ statements were fraudulent because their subject hair products did not contain keratin, were incapable of delivering the benefits associated with keratin, and that defendants knew that their products did not contain keratin. Further, plaintiffs’s complaint sufficiently alleged actual reliance to support claims under California’s Unfair Competition Law and False Advertising Law, as well as breach of express warranty in violation of New York Uniform Commercial Code §2-313.