Los Angeles partner Kate Gold was quoted in a Law360 article titled, “Retailers Early Victors In California Outlet Store Litigation.”
The article discusses the recent dismissal of lawsuits against major California outlet retailers who are accused of deceptive comparison pricing. California federal judges have agreed to dismiss proposed class actions against Neiman Marcus Group Ltd. LLC and Nordstrom Inc., indicating that retailers' use of comparison pricing alone is not deceptive on its face.
Kate said that with the heightened pleading standards required under the U.S. Supreme Court's landmark Twombly and Iqbal decisions, the stringent federal standards for pleading fraud, and the requirements for pleading injury and damages under California’s Unfair Competition Law and Consumer Legal Remedies Act, it will be difficult for plaintiffs to show with particular factual allegations that the comparison pricing or the name of the outlet stores led them to purchase items they wouldn't have bought otherwise or caused them harm.
“It’s going to be a pretty steep burden for these plaintiffs to state a claim because [as the courts have already recognized] they already have all of these [challenges working] against them,” said Kate.