Sharon Hoffman v. Goli Nutrition, Inc.

CourtDistrict Court, C.D. California
DecidedDecember 2, 2024
Docket2:23-cv-06597
StatusUnknown

This text of Sharon Hoffman v. Goli Nutrition, Inc. (Sharon Hoffman v. Goli Nutrition, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sharon Hoffman v. Goli Nutrition, Inc., (C.D. Cal. 2024).

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:23-cv-06597-CAS(MAAx) Date December 2, 2024 Title Sharon Hoffman et al v. Goli Nutrition, Inc. et al

Present: The Honorable CHRISTINA A. SNYDER Catherine Jeang Not Present N/A Deputy Clerk Court Reporter / Recorder Tape No. Attorneys Present for Plaintiffs: Attorneys Present for Defendants: Not Present Not Present Proceedings: (IN CHAMBERS) - DEFENDANT DLA PIPER LLP (US)’S MOTION TO DISMISS SECOND AMENDED COMPLAINT (Dkt. 160, filed on October 18, 2024) DEFENDANTS VMG PARTNERS IV, L-P., VMG PARTNERS MENTORS CIRCLE IV, L.P., VMG PARTNERS II, LLC, WAYNE WU, AND JONATHAN MARSHALL’S MOTION TO STRIKE AND/OR DISMISS SECOND AMENDED COMPLAINT (Dkt. 162, filed on October 18, 2024) DEFENDANTS DEEPAK AGARWAL, MICHAEL BITENSKY, AND RANDY BITENSKY’S MOTION TO DISMISS SECOND AMENDED COMPLAINT (Dkt. 163, filed on October 18, 2024) (In Chambers): DEFENDANTS DEEPAK AGARWAL, MICHAEL BITENSKY, AND RANDY BITENSKY’S MOTION TO STRIKE PLAINTIFFS’ ERRATA (Dkt. 180, filed on November 12, 2024) I. INTRODUCTION On August 11, 2023, plaintiffs Sharon and Odelya Hoffman (the “Hoffmans’), RGL Holdings LLC (“RGL Holdings”), RGL Management LLC (“RGL Management’), and Vitamin Friends LLC (“Vitamin Friends”) filed a complaint against defendants Goli Nutrition, Inc. (Canada), Goli Nutrition, Inc. (Delaware), 12416913 Canada Inc., Deepak Agarwal (“Agarwal”), Michael Bitensky (collectively, “the Goli defendants”), VMG

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:23-cv-06597-CAS(MAAx) Date December 2, 2024 Title Sharon Hoffman et al v. Goli Nutrition, Inc. et al

Partners, LLC, VMG Partners Mentors Circle IV L.P., VMG Partners IV, LP (collectively, “the VMG defendants”), MeriCal Inc. (“MeriCal”), and DLA Piper LLP (US) (“DLA Piper”). Dkt. 1 (‘Compl.”). The complaint alleged nine claims for relief: (1) Vitamin Friends brought claims pursuant to the Defend Trade Secrets Act (“DTSA”), 18 U.S.C. § 1836, against the Goli defendants, the VMG defendants, and MeriCal; (2) the Hoffmans brought claims for fraudulent misrepresentation against the Goli defendants and the VMG defendants; (3) the Hoffmans and RGL Holdings brought claims for breaches of fiduciary duties against Goli and the VMG defendants; (4) RGL Holdings, Vitamin Friends, and Sharon Hoffman brought claims for aiding and abetting against the VMG defendants; (5) the Hoffmans, Vitamin Friends, and RGL Management brought claims for violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1962, against Gol, Agarwal, and Michael Bitensky; (6) Sharon Hoffman brought claims for securities fraud against Goli, Agarwal, and Michael Bitensky; (7) plaintiffs brought claims for legal malpractice against DLA Piper; (8) plaintiffs brought claims for breach of fiduciary duty against DLA Piper; and (9) RGL Management brought a claim for conversion against Goli. Id. On October 27, 2023, MeriCal filed a motion to dismiss the first claim. Dkt. 15. On October 30, 2023, DLA Piper filed a motion to dismiss plaintiffs’ complaint. Dkt. 18. That same day, the VMG defendants filed a motion for sanctions and a motion to dismiss plaintiffs’ complaint. Dkts. 19, 20. The Goli defendants also filed a motion to dismiss plaintiffs’ complaint. Dkt. 21. On October 31, 2023, DLA Piper filed a motion for sanctions. Dkt. 22. On January 17, 2024, the Court granted defendants’ motions to dismiss plaintiffs’ complaint. Dkt. 81. The Court dismissed all of plaintiffs’ claims for lack of standing, with the exception of Vitamin Friends’ claims for trade secret infringement and Sharon Hoffman’s claims for securities fraud. Id. The Court separately dismissed Vitamin Friends’ claims for trade secret infringement for failure to state a claim and Sharon Hoffman’s claims for securities fraud as compulsory counterclaims that should have been brought in the pending Goli v. Hoffman litigation, No. 5:23-cv-00514- GW-KKx (C.D. Cal.) (the “pending Goli litigation”). Id. The Court granted plaintiffs leave to amend the claims that were dismissed for lack of standing, as well as Vitamin Friends’ DTSA claims. Id. The Court also found that, even if Sharon Hoffman had standing to assert claims for fraudulent misrepresentations, breach of fiduciary duties, securities fraud, and violation of RICO, such claims should have been brought as

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:23-cv-06597-CAS(MAAx) Date December 2, 2024 Title Sharon Hoffman et al v. Goli Nutrition, Inc. et al

compulsory counterclaims in the pending Goli litigation. Id. Accordingly, the Court dismissed Sharon Hoffman’s claims with prejudice. Id. On February 14, 2024, plaintiffs filed an amended complaint against Goll1, 12416913 Canada Inc., Agarwal, Michael Bitensky, Randy Bitensky,' VMG Partners, Wayne Wu, Jonathan Marshall, VMG Partners Mentors Circle IV L.P., VMG Partners IV, LP, MeriCal, and Roger Tyre. Dkt. 83 (“FAC”). The FAC alleged eight claims for relief: (1) Vitamin Friends brought claims against the Goli defendants, the VMG defendants, and MeriCal pursuant to the DTSA: (2) Odelya Hoffman and Vitamin Friends brought claims for fraudulent misrepresentation against the Goli defendants and the VMG defendants; (3) Vitamin Friends and RGL Holdings brought claims for breaches of fiduciary duties against Goli and the VMG defendants; (4) Vitamin Friends and RGL Holdings brought claims for aiding and abetting Goli’s breaches of fiduciary duties against the VMG defendants; (5) Odelya Hoffman, Vitamin Friends, and RGL Holdings brought claims for violations of RICO against Goli, Agarwal, and Michael Bitensky; (6) Odelya Hoffman, Vitamin Friends, and RGL Holdings brought claims for violations of Section 1962(d) of RICO against VMG Partners, Wu, and Marshall; (7) Odelya Hoffman brought a claim for intentional infliction of emotional distress (“TIED”) against the Goli defendants and the VMG defendants; and (8) Vitamin Friends and RGL Management brought claims for conversion against Goli. Id. On March 29, 2024, the Goli defendants filed a notice of suggestion of bankruptcy. Dkt. 86. On April 29, 2024, the Court, having received the Goli defendants’ March 29, 2024 notice and April 22, 2024 joint status report, stayed the action as to Goli only. Dkt. 96; see also dkt. 92. On May 3, 2024, the VMG defendants, MeriCal, and Agarwal, Michael Bitensky, and Randy Bitensky filed motions to dismiss plaintiffs’ FAC. Dkts. 97, 98, 100. Agarwal, Michael Bitensky, and Randy Bitensky also filed a motion for Rule 11 sanctions. Dkt. 99. On May 24, 2024, the VMG defendants filed a motion for Rule 11 sanctions. Dkt. 107. On July 24, 2024, the Court denied defendants’ requests for sanctions, but reserved judgment on sanctions for decision at the conclusion of the case. Dkt. 128. On the same day, the Court denied defendants’ motions to dismiss plaintiffs’ DTSA claim and granted defendants’ motions to dismiss all of plaintiffs’ remaining claims with prejudice, except 1 For purposes of the FAC and thereafter, the term “the Goli defendants” also includes Randy Bitensky.

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:23-cv-06597-CAS(MAAx) Date December 2, 2024 Title Sharon Hoffman et al v. Goli Nutrition, Inc. et al

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Sharon Hoffman v. Goli Nutrition, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/sharon-hoffman-v-goli-nutrition-inc-cacd-2024.