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1 Case 8:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 1 of 36 Page ID #:1 1 Jeffrey R. Krinsk (CA Bar No ) jrk@classactionlaw.com. 2 -Mailc L. Knutson (CA Bar No ) mlk@classactionlaw.com 3 William R. Restis (CA Bar No ) wrr(classactionlaw.com. 4 FINKELSTEIN & KRINSKLLP, 51 West Broadway, Suite 125 a , c f---, :1, c... Telephone: (619) Facsimile: (619) ;:::t, :c:; F 7 Attorneys for Plaintiff : "P1 3 Amira Anderson UNITED STATES DISTRICT COU T al.-!.1 1 CENTRAL DISTRICT OF CALIFORNIA 11 SOUTHERN DIVISION 12 AM1RA ANDERSON, individually and Case No. SACV13428 JVS(RNI34 on behalf of all other similarly situated 13 California Residents, CLASS ACTION COMPLAINT FOR: 14 Plaintiff, (I) BREACH OF CONTRACT 15 (2) BREACII OF EXPRESS WARRANTY 16 (3) BREACUI OF IMPLIED v. WARRAATY 17 (4) SONG-BEVERLY SAMSUNG TELECOMMUNICATIONS WARRANTY ACT 18 AMERICA, LLC, a Delaware Limited (5) MAGNUSON-MOSS Liability Company, WARRANTY ACT 19 (6) VIOLATION OF CALIFORNIA'S UNFAIR 2 Defendant. COMPETITION LAW 71 9.) JURY TRIAL DEMANDED CLASS ACTION COMPLAINT

2 8:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 2 of 36 Page ID #:2 1 Plaintiff Amira Anderson ("Plaintiff') alleges as to herself based on her own 2 experience, and as to all other allegations, based upon the investigation of counsel, 3 which included, inter alia, a review of complaints, reports, advisories, press releases, 4 and media reports about defendant Samsung Telecommunications America, LLC 5 ("Samsung" or "Defendant"). 6 NATURE OF THE ACTION 7 1. Plaintiff brings this action against defendant Samsung on behalf of 8 California residents, who purchased a defective Samsung Galaxy S mobile phone Defendant's Galaxy S mobile phones suffer from a software or hardware 1 defect, which causes the phones to randomly freeze, shut down, and power-off while 11 in standby mode, rendering the phones inoperable and unfit for their intended use 12 and purpose After Samsung released the Galaxy S phones during the summer of 14 21, consumers immediately contacted Samsung and Samsung's authorized agents 15 and resellers to complain about the defect. Consumers also have posted myriad 16 complaints about the defect on Internet websites, including on Samsung's own 17 website. Samsung has admitted such a defect and suggested several alternate 18 remedies to consumers, all without success Plaintiff repeatedly attempted to have her defective phone repaired or 2 replaced under Samsung's warranties prior to filing this action Instead, Samsung and its authorized agents and resellers provided Class 22 members with ineffective and damaging "software updates" and phone resets and 23 replacement Galaxy S phones suffering from the same defect. This inadequate 24 response has only perpetuated an endless cycle of futility for Plaintiff and for Class 25 members and has not cured the defect or provided Class members a product that 26 conforms to all express and implied warranties CLASS ACTION COMPLAINT Page I 1 FINKELSTEIN & KRINSK LLP 51 West Broadway, San Diego, Suite 125 California 9211

3 8:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 3 of 36 Page ID #: Defendant Samsung and its authorized agents and resellers have been 2 unable or unwilling to repair the defect or offer Plaintiff and Class members a non- 3 defective Samsung Galaxy S phone or reimbursement for the cost of such phone Defendant Samsung knew or should have known of the defect prior to 5 selling or placing the Samsung Galaxy S phones into the stream of commerce such 6 that its failure to comply with these warranty obligations was willful. Despite 7 knowing of the defect shortly after introducing the phones into the market, Samsung 8 and its authorized agents and resellers continued to sell and distribute the defective 9 phones to Plaintiff and Class members without warning or disclosure of the defect Plaintiff and Class members suffered injury and lost money or property 11 as a result of purchasing a phone that repeatedly shuts off and loses data, purchasing 12 a new phone just to ensure the ability to receive communications, and having 13 expended time and resources addressing this issue with Samsung or its 14 representatives without success. Samsung failed to remedy this harm, and Samsung 15 earned and continues to earn substantial profits from selling defective Galaxy S 16 phones. 17 THE PARTIES Plaintiff Amira Anderson is an individual and is a California citizen, 19 who at all relevant times resided in San Diego county, California. On or about 2 September 29, 211, Anderson purchased a Samsung Galaxy S Vibrant through T- 21 Mobile, acting as Samsung's authorized agent and reseller. Soon after Plaintiff 22 purchased her Galaxy S phone, she experienced the defect alleged within all 23 warranty periods. Prior to Plaintiff's purchase of the Galaxy S, she was unaware of 24 the defect and defendant Samsung failed to warn or disclose the defect to Plaintiff. 25 Had Samsung disclosed such material facts, Plaintiff would not have purchased the 26 Galaxy S. Plaintiff repeatedly tried to resolve the defect prior to filing this action, all 27 of which failed to remedy the defect she consistently experienced. 28 CLASS ACTION COMPLAINT Page 12 FINKELSTEIN & KRINSK LLP Suite West Broadway,

4 8:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 4 of 36 Page ID #: Defendant Samsung Telecommunications America, LLC is a Limited 2 Liability Company incorporated under Delaware law. Defendant's principal place of 3 business is in Richardson, Texas. Samsung designed, manufactured, distributed and 4 sold consumer electronic products, including the defective Samsung Galaxy S 5 mobile phones Whenever this complaint refers to any act of defendant Samsung, the 7 reference shall mean (1) the acts of the directors, officers, employees, affiliates, or 8 agents of defendant who authorized such act while engaged in the management, 9 direction or control of the affairs of defendant, or at the direction of defendant, and 1 (2) any persons who are the parents or alter egos of defendant, while acting within 11 the scope of their agency, affiliation, or employment, and (3) any persons who acted 12 as authorized agents and resellers for defendant ofthe phones in question. 13 JURISDICTION AND VENUE The court has jurisdiction over the lawsuit under 28 U.S.C. 1332(d), 15 the Class Action Fairness Act, because this suit is a class action, the parties are 16 diverse, and the amount in controversy exceeds $5 million, excluding interest and 17 costs Venue is proper in this district under 28 U.S.C. 1391(b)(1) because 19 Defendant is subject to the Court's personal jurisdiction by selling the Samsung 2 Galaxy S phones in this District through its authorized agents and resellers, and by 21 placing the Galaxy S phones in the stream of commerce in this District. Venue is 22 also proper in this District because this lawsuit is related to a pending matter Carwile 23 v. Samsung Telecommunications America, LLC, No. 2:12-cv-566-CJC-JPR 24 pursuant to Civ.L.R. 83-1, and is transferrable to this District under 28 U.S.C (a) CLASS ACTION COMPLAINT Page 13 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

5 8:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 5 of 36 Page ID #:5 1 FACTUAL ALLEGATIONS Since approximately Summer 21, defendant Samsung has marketed, 3 distributed, and warranted the Samsung Galaxy S mobile phones in California and 4 throughout the United States Samsung's Galaxy S mobile phones suffer from a defect, which 6 manifested during the warranty period and useful life of such phones. The defect 7 causes the phones to freeze, shut down, and power-off randomly while in standby 8 mode, rendering the phones inoperable. 9 A. Samsung Galaxy S mobile phone product line Samsung produces a line of cellular phones called the "Samsung Galaxy 11 S, which uses the Google Android operating system. Samsung's line of Galaxy S 12 phones includes the Captivate for AT&T, the Vibrant for T-Mobile, the Epic 4G for 13 Sprint, and the Fascinate for Verizon. These are all essentially the same phones, just 14 with different names Each phone in the Samsung Galaxy S product line is a "smartphone." 16 Smartphones are cellular phones that run on an operating system and can run 17 applications Each phone in the Galaxy S product line has essentially the same 19 product features, including a 4-inch "Super AMOLED" display, a 1 GHz 2 "Hummingbird" Cortex A8 processor, a 5-megapixel auto-focus camera, and the 21 ability to display HD video. The defect occurs in each of these phone models across 22 phone carrier lines, and similar reports of the same defect have been made from 23 Europe involving the same phone line, such that the defect is not related to any 24 particular carrier that distributes the phone. 25 B. The Samsung Galaxy S mobile phone defect Soon after the Samsung Galaxy S models were released in Summer 27 21, consumers lodged complaints about their experiences with the defect. 28 CLASS ACTION COMPLAINT Page 4 FINKELSTEIN & KRINSK LLP Suite West Broadway,

6 8:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 6 of 36 Page ID #:6 1 Thousands of consumer complaints about the defect were posted online. Defendant 2 continued to market and sell these phones without curing the defect or disclosing its 3 existence to consumers These complaints all identify the same essential defect. When a 5 smartphone is powered on but is not being actively used, it is in "standby mode" to 6 extend battery life. The defect occurs when consumers cannot wake their phones 7 from standby mode. Non-defective phones should wake from standby mode and 8 return to normal operating function by pushing any button on the phone or when a 9 call or text message comes in on the phone. While in standby mode, however, the 1 Samsung Galaxy S phone freezes or powers itself off, meaning it cannot receive or 11 deliver telephone calls, messages or data. Unless one is constantly monitoring their 12 phone to know whether it is on, they would not know when the phone is actually off 13 except when trying to use it To operate a phone that experiences the defect, a consumer must 15 remove the battery from the Galaxy S phone, reinsert it, and power the phone back 16 on. Pressing the power button is futile because the phone does not power on without 17 first removing and reinserting the battery The defect occurs randomly and repeatedly, causing the phone to freeze 19 or power off while in standby mode, as many as ten times per day. Once the phone is 2 powered back on, it is still susceptible to powering itself back off and losing data The defect also causes the phone to reset while the phone is being used 22 to make calls. While a consumer is speaking on the phone, it will reset itself during 23 the call and make the phone unusable while it is restarting Although numerous consumers reported the defect to Samsung and its 25 authorized agents and resellers soon after its release, Samsung failed to notify 26 consumers, including Plaintiff, about the defect prior to or after purchase CLASS ACTION COMPLAINT Page I 5 FINKELSTEIN & KRINSK LLP 51 West Broadway, San Diego, Suite 125 California 9211

7 8:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 7 of 36 Page ID #: The defect's presence is material because the defect causes the phones to 2 repeatedly freeze or turn off, causing Plaintiff and Class members to miss phone 3 calls, alerts, messages, s, and alarms, and frequently lose data due to the 4 defect The defect is material because neither Plaintiff, Class members, nor any 6 reasonable consumer would have purchased the defective Samsung Galaxy S mobile 7 phones had they known of the defect, and such phones would not pass without 8 objection in the trade or industry As evidence of the significance of the defect, many consumers have 1 opted to pay additional and substantial fees to either purchase a new phone at full 11 retail price, or have paid early termination fees to purchase a new phone. Many 12 consumers found that paying those substantial fees was the only way to obtain full 13 relief from their defective Samsung Galaxy S phones. 14 C. Plaintiff repeatedly tried to repair her defect Samsung Galaxy S phone prior to initiating this action Plaintiff purchased a Samsung Galaxy S Vibrant on or about December September 29, 211. Like other class members, Plaintiff's phone began to experience the defect shortly after purchase. Plaintiff repeatedly called Defendant's authorized phone service faciliy T-mobile to have her phone repaired or replaced, as it was under warranty. Each time, Samsung's authorized agents at T-mobile instructed Plaintiff to do "master resets" of her Galaxy S phone, none of which corrected the Defect. 29. Then in July 212, Plaintiff surrendered her Galaxy S phone to Samsung's authorized agent T-mobile recieved a replacement Galaxy S under Samsung's Warranty. That phone similarly experienced the defect, and so Plaintiff surrendered her second Galaxy S phone to T-mobile under Samsung's Warranty for a third replacement Galaxy S in January 213. Anderson's third Galaxy S similarly experienced the Defect. 28 CLASS ACTION COMPLAINT Page 16 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

8 8:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 8 of 36 Page ID #: Plaintiff surrendered her third defective Galaxy S phone to T-mobile in 2 April 213 under Samsung's Warranty, obtaining a fourth Galaxy S phone. That 3 phone also experienced the Defect. Plaintiff became exasperated at Samsung's 4 inability to provide her with a working Galaxy S phone, and concluded that the 5 Galaxy S phones were beyond repair and gave up on further efforts to let Samsung 6 provide a working Galaxy S phone In May 213, Plaintiffupgraded to a Samsung Galaxy SIII, selling her 8 fourth defective Galaxy S phone to the electronics merchant Best Buy in La Mesa, 9 California for $ Plaintiffs phones experienced the defect during varying states of use, 11 and such variables as whether the phone was charging, loading an application, or 12 sitting in standby did not affect whether the defect would occur Plaintiff experienced problems resulting from the defect in her Samsung 14 Galaxy S Vibrant phone within all warranty periods. A copy of Samsung's warranty 15 for the Galaxy S vibrant, as downloaded from Samsung's website, is attached hereto 16 as Exhibit A At the time of purchase, Plaintiff was unaware of the defect, and 18 Plaintiff has lost money or property and suffered injury in a manner similar to other 19 Class members. If the facts known to Defendant about the defect had been disclosed 2 to Plaintiff, she would not have acquired that phone and entered into the associated 21 contract at the prices paid, if at all. 22 D. Samsung fails to provide an adequate remedy Samsung knows its Galaxy S mobile phones suffer from a defect that 24 causes the phones to regularly freeze, crash, and shut down, and yet it still continued 25 to market and sell these phones even though it cannot repair them or offer a Mobile_T959_Vibrant_English_User_Guide.pdf 28 CLASS ACTION COMPLAINT Page 17 FINKELSTEIN & KRINSK LLP Suite West Broadway,

9 8:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 9 of 36 Page ID #:9 1 replacement phone that does not suffer from the defect or reimburse consumers the 2 amounts they paid for such phones, such that its conduct is willful Samsung has failed to cure the defect or replace Plaintiff's Samsung 4 Galaxy S phone with a non-defective phone and offer full compensation required 5 under federal and state law When consumers contacted Samsung and its authorized agents and 7 resellers to complain about the defect, Samsung denied there was any defect with 8 their Galaxy S phones Plaintiff contacted a Samsung "authorized phone service facility" to 1 repair or service her defective phone as Samsung maintains no direct repair facilities 11 in this state, or in any state other than Texas, nor provides any list of such facilities 12 on its website or to its retail sellers as required by law. Samsung's express warranty 13 represents to customers they may do so or alternatively call Samsung customer care 14 to "obtain assistance on where to deliver the product" for servicing or repair Samsung's warranty does not specify what constitutes an "authorized 16 phone service facility." However, it was Samsung's custom to inform customers to 17 take their phones to their local phone carriers for service As Samsung fails to provide service and repair facilities in this state, 19 and because its written warranty does not specify what constitutes an "authorized 2 phone service facility, Samsung's and the retail seller's actions shows that under all 21 applicable laws and as a reasonable construction of such warranties, phone carrier 22 entities are phone service facilities authorized by Samsung for purposes of 23 compliance with any express warranty obligations. By contacting or sending her 24 phone to her phone carrier for service or repair of the defect, Plaintiff complied with 25 any warranty's preconditions based on how the term "authorized phone service 26 facility' has been applied and used by Samsung CLASS ACTION COMPLAINT Page I 8 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

10 Case1p:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 1 of 36 Page ID #: Therefore, Plaintiff and Class members complied with any express 2 warranty preconditions by returning their defective phones to their phone carrier for 3 repair and service Plaintiff and Class members have made reasonable numbers of repair 5 attempts, thereby giving pre-lawsuit notice of the defect to Samsung Defendant's policy of replacing one defective phone with another 7 defective phone fails to offer consumers a viable remedy, but instead only 8 perpetuated Plaintiff s and Class members' damages. Samsung has refused to refund 9 the cost of the phone and all related costs or provide consumers non-defective 1 replacement Galaxy S phones Defendant Samsung has denied its Galaxy S phones have experienced 12 the defect despite thousands of public complaints from consumers across phone 13 carriers and the Galaxy S product line. 14 E. Samsung had notice of the defect as consumers posted complaints on Samsung's website Consumers have posted thousands of complaints about the Samsung Galaxy S defect on dozens of online support and technology forums, including on Samsung's own website. Examples of these complaints are set forth below. As evidenced by these comments, Samsung was made aware of this defect as early as the Fall 21 if not earlier, yet failed to stop selling these phones 2 provide a fix to resolve the defect. 21 CONSUMER COMPLAINTS FROM SAMSUNG.COM 22 "Why does my phone turn off (shut down) during sleep mode?" 23 --Samm and failed to 24 Link:http :// Date: September Samsung's Response to Samm: "Once your phone goes in sleep mode or if the 26 screen went black, press the power button located on the right side of the phone once to light up the screen. If after doing the step and the screen doesn't 27 light up then you can go to your service provider so they can check the phone for you. You may also call Samsune Customer Support. so we can do minimal 28 CLASS ACTION COMPLAINT Page 19 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

11 Casq18:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 11 of 36 Page ID #:11 1 troubleshooting to your phone. Once troubleshooting has been done to the point of actual failure, we can setup a repair on the product. should it be 2 determined the problem cannot be resolved over the phone. We can repair the phone. if it is still under warranty and has not been physically damaged. For 3 troubleshooting and questions related to possible repairs we invite you to contact Samsung Customer Care at your earliest convenience through our toll 4 free number HELP ( )." (emphasis added) --Samsung4 5 Link: 6 Date: November 21 7 "What causes my phone to spontaneously shut off? Sometimes I'll check my phone and discover that it is turned off when it was on the last time I checked 8 it. I cannot find a pattern to this behavior, but the frequency of this happening seems to be increasing, from once a week to, recently, once a day. I also would 9 like to know why doing a factory reset didn't fix this problem. --benbald72 1 Link: 11 Date: September "What if my Captivate keeps on shutting off by itself? My phone was lying on my desk for about an hour and i come back and see that it was turned off. Then 13 i turn it back on and come back at another short interval only to find out that my phone was turned off again, this has happened consistently over the past 14 few days. and i need to know if this will be a problem with my phones reliability. I am a very busy person and i need to know that i can rely on my 15 phone so that my family may reach me at all times. My phone is only a week old. and this problem appeared approximately three days ago." 16 --captivateuser 17 Link: Date: September "Samsung Galaxy phone randomly shuts off. Battery is fully charged but my 19 Samsung Galaxy phone randomly shuts off. Battery is seated properly and fully charged. Changing display timeout settings doesn't help the situation." 2 --anyadorst 21 Link: I897ZKAATT 22 Date: October "Phone keeps shutting off. 4-5 times a day my phone will completely shut off on its own. Is there anything I can do to prevent this?" --snrrendondo 24 Link: 25 Date: October "Why the heck does the phone shut down. without warning. daily? The freakin' phone just shuts off. while I'm on a call. over night, or just any oftime?! The 27 worst thing about it is. that I don't know the darn thing is off, so I can't take any action to correct it! How many calls have I missed? Does the Phone still 28 CLASS ACTION COMPLAINT Page I 1 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

12 CaseH8:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 12 of 36 Page ID #:12 1 list them as "missed Calls" or do they just go away, lost forever? I use this phone for my business. A missed call can cost me thousands!!! I want this 2 fixed or replaced IMMEDIATELY! You know how to contact me. If you can't fix it, just send me a Blackberry Torch!!" 3 --boogiemonster 4 Link: Date: November 21 5 "How do I keep my Fascinate from turning off? My phone keeps shutting off. I 6 cannot get it to stay on for any period oftime if I am not using it. Is this a special function? I want to answer my phone when phone call and I cannot do 7 that if it continues to shut off. My friend and I got the same phones at same time and she is having same problem. so there must be a way to keep the 8 phone on. right? there must be a function to keep the phone on so I can answer my calls without going to voicemai I. thank you for your help!" 9 --BE649 1 Link: Date: December "My phone shuts off after a short time on its own. My phone turns all 12 the way off after a few minutes of not being used. The battery power is fine and I don't see any other reason why it would do this. I am very upset because 13 I keep missing calls and messages from people because I think it is on but it has shut itself off." 14 --cherylchoenstein 15 Link: 16 "Why does my Samsung Captivate keep shutting off? My phone just randomly shuts down. it can be sitting on a table and 1 minutes later i have to pull the 17 battery and reconnect to get it back working. Is there a recall on this? and if so how to i go about fixing it. most nights i set my alarm as i use it to wake and 18 most mornings its completely turned off again. I can have 6% battery and it still happens. I've already been late to work several times because of this 19 problem. which isn't good" --charbonnet81 2 Link: 21 Date: January *Some snellina errors have been corrected to ensure clarity CLASS ACTION COMPLAINT Page I 11 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

13 Case16:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 13 of 36 Page ID #:13 1 CLASS ACTION ALLEGATIONS Plaintiff brings this class action claim under Rule 23 of the Federal 3 Rules of Civil Procedure, on behalf of the following Class: 4 All persons who, while residing in California since January 1, 21, purchased one or more Samsung Galaxy S mobile phones from Samsung 5 or its authorized retailer sellers and experienced a software or hardware defect, which causes the phones to randomly freeze, shut down, and 6 power-off, or are likely to experience the defect during the useful life of the phone. 7 8 Excluded from the Class are all governmental entities, Defendant herein and any 9 person, firm, trust, corporation, or other entity related to or affiliated with any 1 defendant, as well as any judge, justice or judicial officer presiding over this matter 11 and members of their immediate families and judicial staff Plaintiff reserves the right to amend or modify the Class definition for a 13 class certification motion, or with discovery or investigatory results. This lawsuit is 14 properly brought as a class action for the following reasons The Class is so numerous that joinder of the proposed individual Class 16 members is impracticable. The Class includes thousands of persons geographically 17 dispersed throughout California. The precise number and identities of Class members 18 are unknown to Plaintiff, but are known to Samsung and can be ascertained through 19 discovery, namely by using Samsung's records of sales, warranty records, and other 2 information kept by Samsung or by Samsung's agents Plaintiff anticipates no difficulties in managing this litigation as a class 22 action. The Class is ascertainable. There is a well-defined community of interest in 23 the questions of law and fact, since the rights of each Class member was infringed or 24 violated in similar fashion based upon Samsung's misconduct. Notice can be 25 provided via records maintained by Samsung through mailed and electronic notice 26 and publication, the cost of which is properly imposed upon Samsung CLASS ACTION COMPLAINT Page I 12 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

14 Case16:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 14 of 36 Page ID #: Questions of law and fact common to the Class exist as to Plaintiff and 2 Class members. These common law and fact questions predominate over any 3 questions affecting only individual Class members in that answering these questions 4 will determine at one time Samsung's liability for the conduct alleged. The common 5 questions of law and fact include: 6 a) whether defendant Samsung's Galaxy S phones are defective; 7 b) whether Samsung failed to disclose material facts about the defect in its 8 Samsung Galaxy S phones and when Samsung learned of such material 9 facts; 1 c) whether Samsung made any express warranties in its sale of the 11 Samsung Galaxy S phones; 12 d) whether Samsung made any implied warranties in its sale of the 13 Samsung Galaxy S phones; 14 e) whether Samsung breached any express or implied warranties relating 15 to its sale of Samsung Galaxy S phones; 16 f) whether Samsung was unjustly enriched by selling defective Samsung 17 Galaxy S phones; 18 g) whether Samsung violated consumer protection laws by selling 19 defective phones or by failing to disclose the defect; 2 h) the appropriate nature of class-wide equitable relief; and 21 i) the appropriate measure of restitution and damages to award to Plaintiff 22 and to the Class Samsung engaged in common conduct establishing the legal rights 24 sought to be enforced by Plaintiff and the Class. Individual questions pale by 25 comparison to the numerous common questions which predominate Plaintiffs claims are typical of the claims of Class members. The 27 injuries sustained by Plaintiff and the Class flows, in each instance, from a common 28 CLASS ACTION COMPLAINT Page 113 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

15 Caseip:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 15 of 36 Page ID #:15 1 nucleus of operative facts based on defendant Samsung's conduct, as alleged. 2 Defendant Samsung's defenses asserted against Plaintiff s claims likely would be 3 similar to Samsung's defenses asserted against Class members' claims Plaintiff will fairly and adequately protect Class members' interests. 5 Plaintiff has no interests materially adverse to or that irreconcilably conflict with 6 Class members' interests and Plaintiff has retained counsel with significant 7 experience in prosecuting class actions and complex litigation, and who will 8 vigorously prosecute this action A Class action is superior to other available methods for the fair and 1 efficient group-wide adjudication of this controversy, and individual joinder of all 11 Class members is impracticable, if not impossible because many Class members are 12 located throughout California. The cost to the court system of such individualized 13 litigation would be substantial. Individualized litigation would likewise present the 14 potential for inconsistent or contradictory judgments and would cause significant 15 delay and expense to all parties and multiple courts hearing virtually identical 16 lawsuits. Managing this action as a class action presents few management 17 difficulties, conserves litigant and court resources, protects each Class member's 18 rights, and maximizes their recovery Samsung has acted on grounds applicable to the entire Class, making 2 final injunctive relief or corresponding declaratory relief appropriate regarding the 21 Class as a whole. 22 COUNT I 23 Breach of Contract Plaintiff incorporates the above allegations by reference as if fully set 25 forth below Plaintiff asserts this count individually and for the proposed Class CLASS ACTION COMPLAINT Page 114 FINKELSTEIN & KRINSK LLP 51 West Broadway, San Diego, Suite 125 California 9211

16 Caself3:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 16 of 36 Page ID #: Defendant Samsung made promises and representations to all 2 consumers, which became the basis of the bargain between Plaintiff, Class members, 3 and Samsung. Defendant Samsung gave these express representations to Plaintiff and 4 Class members accompanying the sale of its Samsung Galaxy S phones Defendant expressly promised Plaintiff and Class members, that these 6 phones were effective, free from defects in materials and workmanship, and fit for 7 their intended use. The representations included with Plaintiff and Class members' 8 phones expressly promised Samsung's Galaxy S Phones were "free from defects in 9 material and workmanship under normal use and service" for one year from 1 purchase, covering defects in both hardware and software Samsung's Galaxy S phones failed to comply with defendant's express 12 representations because the phones suffer from a defect, which causes the phones to 13 freeze, shut down, and power-off randomly while in standby mode, rendering the 14 phones unfit for their intended use and purpose Plaintiff complied with the preconditions to asserting a breach of 16 contract claim by contacting a Samsung authorized phone service facility to repair or 17 service her defective phone Plaintiff performed under her contract with Samsung by contacting and 19 affording defendant Samsung or its agents and authorized phone service facilities 2 reasonable opportunities to repair and/or replace the defective phone with a phone 21 that did not possess the defect Defendant Samsung breached its express representations by failing to 23 repair the phones, failing to replace the defective Galaxy S phones with non- 24 defective phones and refund Plaintiff's and Class members' monies Defendant Samsung's breach of contract caused Plaintiff to suffer 26 injuries, including the inability to use her phone, paying for defective products, and CLASS ACTION COMPLAINT Page I 15 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

17 Case1f3:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 17 of 36 Page ID #:17 1 entering into transactions Plaintiff would not have entered into but for Samsung's 2 acts As a direct and proximate result of Samsung's breach of contract, 4 Plaintiff and Class members have suffered damages and continue to suffer damages, 5 including economic damages at the point of sale for the difference between the value 6 of the phones as promised and the value of the phones delivered (essentially 7 worthless). Plaintiff and Class members either have or will incur economic damages 8 at the point of repair in the cost of repair or replacement and costs of complying with 9 continual contractual obligations and the cost of buying an additional phone they 1 would not have purchased had the phones in question not contained the non- 11 repairable defect Plaintiff and Class members are entitled to legal and equitable relief 13 against Samsung, including damages, specific performance, rescission, attorneys' 14 fees, costs of suit, and other relief. 15 COUNT II 16 Breach of Express Warranty Plaintiff incorporates the above allegations by reference as if fully set 18 forth below Plaintiff asserts this count individually and for the proposed Class Defendant Samsung and its authorized agents and resellers sold 21 Samsung Galaxy S phones to Plaintiff and Class members in the regular course of 22 business. Such phones are goods Defendant Samsung made promises and representations in an express 24 warranty provided to all consumers, which became the basis of the bargain between 25 Plaintiff, Class members, and Samsung. Defendant Samsung gave these express 26 warranties to plaintiff and Class members through issuing its written warranty CLASS ACTION COMPLAINT Page 116 FINKELSTEIN & KRINSK LLP Suite West Broadway,

18 Case18:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 18 of 36 Page ID #:18 1 accompanying its Samsung Galaxy S phones. See Exhibit A, incorporated by 2 reference Defendant expressly warranted to Plaintiff and Class members, these 4 phones were effective, free from defects in materials and workmanship, and fit for 5 their intended use. The warranty included with Plaintiff and Class members' phones 6 expressly represented Samsung's Galaxy S Phones were "free from defects in 7 material and workmanship under normal use and service" for one year from 8 purchase, covering defects in both hardware and software. Exhibit A Samsung's Galaxy S phones failed to comply with defendant's express 1 warranties because the phones suffer from a defect, which causes the phones to 11 freeze, shut down, and power-off randomly while in standby mode, rendering the 12 phones unfit for their intended use and purpose Plaintiff complied with the preconditions to an express warranty claim 14 by contacting a Samsung authorized phone service facility to repair or service her 15 defective phone Plaintiff also complied with any warranty preconditions under 17 California law. California Civil Code states if "the manufacturer of 18 consumer goods sold in this state for which the manufacturer has made an express 19 warranty does not provide service and repair facilities within this state" the buyer 2 may return the nonconforming goods to either: (1) the retail seller of the 21 nonconforming goods; or (2) to any retail seller of like goods of the same 22 manufacturer within this state. According to Samsung, its only authorized phone 23 service center is in Texas. Plaintiff took her defective phone to a California location 24 ofretail sellers of such products. Plaintiff's phone carrier is the authorized agent and 25 reseller of like goods of defendant Samsung and therefore, by statute, is an 26 authorized service facility for the express warranty. Plaintiff complied with all 27 preconditions to asserting an express warranty claim by returning her defective I 28 CLASS ACTION COMPLAINT Page 17 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

19 Case1f3:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 19 of 36 Page ID #:19 1 Samsung phones during the warranty period to "an authorized phone service facility" 2 or a "retail seller" of such phones as set forth in the express warranty and as 3 permitted under Cal. Civ. Code By sending her phone to her phone carrier 4 for service or repair of the defect, Plaintiff complied with any warranty's 5 preconditions based on how the term "authorized phone service facility" has been 6 applied by Samsung In conformance with her warranty, Plaintiff contacted and afforded 8 defendant Samsung or its agents and authorized phone service facilities reasonable 9 opportunities to repair and/or replace the defective phone during the warranty period 1 with a phone that did not possess the defect Samsung was on notice of the defect in the Galaxy S phones from 12 complaints and service requests it admittedly received from Plaintiff and Class 13 members, from repairs and replacements of the Samsung Galaxy S phones at issue, 14 and through its own internal investigation Plaintiff also repeatedly tried to return her defective Samsung Galaxy S 16 phone to Samsung's authorized agents and resellers during the warranty period, only 17 to have the defect persist. Samsung's only response to the defect has perpetuated an 18 endless cycle of futility for Plaintiff and Class members, leaving them with no relief Defendant Samsung breached its express warranties by failing to repair 2 the phones, failing to replace the defective Galaxy S phones with non-defective 21 phones and refund Plaintiff s and Class members' monies Defendant Samsung's breach of its express warranty caused Plaintiff to 23 suffer injuries, including the inability to use her phone, paying for defective 24 products, and entering into transactions she would not have entered into but for 25 Samsung's acts As a direct and proximate result of Samsung's breach of its express 27 warranties, Plaintiff and Class members have suffered damages and continue to 28 CLASS ACTION COMPLAINT Page 118 FINKELSTEIN & KRINSKLLP Suite West Broadway,

20 CaseIp:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 2 of 36 Page ID #:2 1 suffer damages, including economic damages at the point of sale for the difference 2 between the value of the phones as promised and the value of the phones delivered 3 (essentially worthless). Plaintiff and Class members either have or will incur 4 economic damages at the point of repair in the cost of repair or replacement and 5 costs of complying with continual contractual obligations and the cost of buying an 6 additional phone they would not have purchased had the phones in question not 7 contained the non-repairable defect Plaintiff and Class members are entitled to legal and equitable relief 9 against Samsung, including damages, specific performance, rescission, attorneys' 1 fees, costs of suit, and other relief. 11 COUNT III 12 Breach of Implied Warranty Plaintiff incorporates the above allegations by reference as if fully set 14 forth below Plaintiff asserts this count individually and for the proposed Class Defendant Samsung and its authorized agents and resellers sold Galaxy 17 S Phones to Plaintiff and Class members in the regular course of business Defendant Samsung impliedly warranted to Plaintiff and Class 19 members, these phones were of merchantable quality (i.e. a product of a high enough 2 quality to make it fit for sale, usable for the purpose it was made, of average worth in 21 the marketplace, or not broken, unworkable, damaged, contaminated or flawed), 22 would pass without objection in the trade or business, and were free from material 23 defects and reasonably fit for the use for which they were intended. Samsung either 24 knew or should have known of the purposes for which such phones are used (i.e. the 25 ability to send and receive contemporaneous communications), and Samsung should 26 have been aware Plaintiff and the Class members were relying on defendant 27 Samsung's skill and judgment to furnish suitable goods for such purpose. 28 CLASS ACTION COMPLAINT Page I 19 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

21 Casep:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 21 of 36 Page ID #: Under agreements between Samsung and its authorized agents and 2 resellers, the stores from which Plaintiff and Class members purchased their 3 defective Galaxy S phones were authorized Samsung retailers and authorized phone 4 service facilities. Plaintiff and Class members are third-party beneficiaries of, and 5 substantially benefited from, such contracts Defendant Samsung breached its implied warranties by selling Plaintiff 7 and Class members defective Samsung Galaxy S mobile phones that failed during all 8 warranty periods. The defect renders the Galaxy S phones unfit for their ordinary use 9 and purpose. Defendant Samsung has refused to recall, repair or replace, without 1 charge, all Samsung Galaxy S mobile phones or their defective component parts or 11 refund the prices paid for defective phones Defendant Samsung was on notice of the defect from complaints and 13 service requests Samsung admittedly received from Plaintiff and Class members, 14 from repairs and replacements of the Samsung phones at issue, and through 15 Samsung's own internal testing and investigations Plaintiff afforded Samsung and its authorized phone service facilities 17 repeated opportunities to repair or replace the defective phones, which defendant 18 rejected The defect in the Galaxy S phones existed when the phones left 2 Samsung's and Samsung's authorized agents' and resellers' possession and renders 21 the phones unfit for their intended use and purpose As a direct and proximate result of Samsung's breach of its implied 23 warranties, Plaintiff and Class members have suffered damages and continue to 24 suffer damages, including economic damages at the point of sale for the difference 25 between the value of the phones as warranted and the value of the phones as 26 delivered. Plaintiff and Class members either have or will incur economic, incidental 27 and consequential damages in the cost of repair or replacement and costs of 28 CLASS ACTION COMPLAINT Page 12 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

22 Casej6:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 22 of 36 Page ID #:22 1 complying with continued contractual obligations and the cost of buying an 2 additional phone they would not have purchased had the phones in question not 3 contained the non-repairable defect Plaintiff and Class members are entitled to legal and equitable relief 5 against Samsung, including damages, specific performance, rescission, attorneys' 6 fees, costs of suit, and other relief. 7 COUNT IV 8 Song-Beverly Warranty Act, California Civil Code 1792 et seq Plaintiff incorporates the above allegations by reference as if fully set 1 forth below Plaintiff asserts this claim individually and for all Class members Under the Song-Beverly Consumer Warranty Act, California Civil Code et seq., every sale of consumer goods in California is accompanied by both a 14 manufacturer's and retail seller's implied warranty that the goods are merchantable, 15 and accompanied by an implied warranty of fitness Plaintiff and Class members each purchased one or more Samsung 17 Galaxy S phones at retail stores in California, which are "consumer goods" within 18 the meaning of California Civil Code 1791(a) Defendant Samsung manufactures and sells Samsung Galaxy S mobile 2 phones to retail buyers, and therefore Samsung is a "manufacturer" and "seller" 21 within the meaning of California Civil Code Defendant Samsung provided express warranties and Samsung 23 impliedly warranted to Plaintiff and Class members the Samsung Galaxy S phones 24 were of merchantable quality, would pass without objection in the trade or industry, 25 and were fit for the ordinary purposes for which the phones are used Defendant Samsung has breached both express and implied warranties 27 because the Samsung Galaxy S mobile phones sold to Plaintiff and Class members 28 CLASS ACTION COMPLAINT Page 121 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

23 Case1f3:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 23 of 36 Page ID #:23 1 were not of the same quality as those acceptable in the trade and were not fit for the 2 ordinary purposes for which such goods are used, in that the phones freeze, shut 3 down, and power-off randomly while in standby mode, causing Plaintiff and Class 4 members to miss calls, lose time, data and work product, impairing the usability of 5 the phones Plaintiff complied with all provisions of the Song-Beverly Act by 7 attempting to have her phone repaired. In compliance with California Civil Code , if "the manufacturer of consumer goods sold in this state for which the 9 manufacturer has made an express warranty does not provide service and repair 1 facilities within this state" the buyer may return the nonconforming goods to either: 11 (1) the retail seller of the nonconforming goods; or (2) to any retail seller of like 12 goods of the same manufacturer within this state. According to Samsung, its only 13 authorized phone service center is in Texas. Plaintiff either took her defective 14 telephone to the California location of a retail seller of such products, as Plaintiffs' 15 phone carrier is a Samsung authorized retail seller of like goods As Samsung or its representatives and retail sellers cannot repair these 17 phones to conform to the warranties after a reasonable number of attempts, Samsung 18 must replace the defective phones with non-defective phones or reimburse the buyers 19 for the purchase price of such phones. Defendant Samsung has failed to do so. Such 2 failure to comply with these statutory warranty obligations was willful As a direct and proximate cause of Samsung's breach of the Song- 22 Beverly Act, Plaintiff and Class members sustained damages and other losses in an 23 amount to be determined entitling them to compensatory damages, consequential 24 damages, statutory damages and civil penalties, diminution in value, costs, attorneys' 25 fees and interest CLASS ACTION COMPLAINT Page 122 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

24 Casep:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 24 of 36 Page ID #:24 1 COUNT V 2 Magnuson-Moss Warranty Act, 15 U.S.C. 231 et seq Plaintiff incorporates the above allegations by reference as if fully set 4 forth below Plaintiff asserts this count individually and for the proposed Class The Samsung Galaxy S mobile phones at issue are "consumer products" 7 within the meaning of the Magnuson-Moss Act, 15 U.S.C. 231(1) Plaintiff and Class members are "consumers" within the meaning of the 9 Magnuson-Moss Act, 15 U.S.C. 231(3) Defendant is a "supplier" and "warrantor" within the meaning of the 11 Magnuson-Moss Act, 15 U.S.C. 231(4)-(5) Defendant issued Plaintiff and Class members a "written warranty" 13 within the meaning of the Magnuson-Moss Act, 15 U.S.C. 231(6) Defendant Samsung warranted to Plaintiff and to Class members the 15 Samsung Galaxy S mobile phones were free from defect, were of merchantable 16 quality, and fit for the ordinary and specific purposes for which the phones are used Defendant Samsung has breached and refused to honor its warranties as 18 the Samsung Galaxy S mobile phones are defective and were not as expressly and 19 impliedly warranted and failed to perform as reasonably expected Plaintiff has asserted a valid breach of express and implied warranty 21 claim as set out in Counts I and II above. Plaintiff complied with all warranty 22 preconditions by taking her defective phone to an authorized phone service facility 23 for repair or replacement. Plaintiff made these attempts during the express warranty 24 period. Plaintiff afforded Samsung and its authorized phone service facility the 25 opportunity to cure the defect by repairing or replacing the phone prior to the 26 initiation of this action, without success CLASS ACTION COMPLAINT Page 123 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125

25 Case16:13-cv-128-JVS-RNB Document 1 Filed 7/1/13 Page 25 of 36 Page ID #: Defendant Samsung has breached and refused to honor its warranties. 2 Due to the defect, the Samsung Galaxy S phones were not as expressly and impliedly 3 warranted, and failed to perform as reasonably expected The amount in controversy of Plaintiffs' and Class members' individual 5 claims meets or exceeds the sum or value of $25. The amount in controversy meets 6 or exceeds the sum or value of $5, (exclusive of interest and costs) computed on 7 the basis of all claims to be determined. Samsung maintains no alternative dispute 8 resolution program that complies with the requirements of 16 C.F.R. 73 et seq Defendant has been afforded a reasonable opportunity to cure its breach 1 of warranty. Defendant has been provided ample notice of the defect experienced by 11 both Plaintiff and Class members, but has failed to remedy the situation As a direct and proximate result of defendant's conduct, Plaintiff and the 13 Class have suffered injury and damages in an amount to be determined. Plaintiff and 14 the Class are entitled to recover damages, consequential damages, specific 15 performance, diminution in value, rescission, attorneys' fees and costs, and other 16 relief as authorized by law. 17 COUNT VI 18 Violation of the California Unfair Competition Law Plaintiff incorporates the above allegations by reference as if fully set 2 forth below Plaintiff asserts this claim individually and for all Class members Defendant Samsung's business acts and practices complained of were 23 centered in, carried out, effectuated and perfected within or had their effect in 24 California, and injured Plaintiff and all Class members Defendant Samsung has committed acts of unfair competition, as 26 defined by California Business and Professions Code 172 et seq., by engaging 27 in the acts and practices alleged above. 28 CLASS ACTION COMPLAINT Page 124 FINKELSTEIN & KRINSK LLP 51 West Broadway, Suite 125