News Brief

Lee Prevails on Motions to Dismiss Lanham Act and RICO Claims with Prejudice

May 20, 2019

Gregory Lee (Partner-Los Angeles) defended a company that helps consumers exit their timeshare contracts against commercial litigation filed by the plaintiff, a timeshare developer, in the United States District Court for the Southern District of California. The plaintiff brought claims under the Lanham Act and the California False Advertising Law against our client for allegedly using false and misleading advertising with consumers. Greg filed multiple rounds of motions to dismiss that challenged the plaintiff's standing to assert such claims against the client. The district court ultimately agreed with Greg that the plaintiff lacked standing, and dismissed both of the claims with prejudice. The plaintiff also brought a separate claim under the California Time Share Act arising from the same allegedly false and misleading advertisements. As to that claim, Greg filed motions to dismiss arguing that a statutory exception shielded the client from liability, and the district court eventually agreed and dismissed this claim with prejudice as well. The plaintiff also sued the client under the civil RICO statute for allegedly engaging in mail and wire fraud. Greg argued that the plaintiff had failed to adequately plead a causal link between the client's alleged conduct and the plaintiff's alleged damages. After extensive briefing, the district court dismissed the RICO claim with prejudice as well.

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