Firm Secures Order Granting Attorneys Fees in False Advertising Case
November, 2024 - New York, New York
On November 12, 2024, Patterson Belknap obtained a significant victory on behalf of our client, InComm Financial Services, Inc. (“InComm”), in a false advertising case in the Central District of California. The Court found that plaintiffs' counsel exhibited a "stunning, nearly two-year lack of diligence" in pursuing their claims, and accordingly ordered them to pay attorneys’ fees to InComm.
This consumer class action was first brought against InComm in October 2022 and alleged that Vanilla Gift Cards, which are distributed by our client, had weak security and that InComm misrepresented the security of the cards’ balances. The firm successfully narrowed the scope of litigation by eliminating claims of four of the five original named plaintiffs. In March 2024, after finding that the sole remaining plaintiff had no evidence to support her claims, InComm successfully moved for summary judgment. InComm then filed a motion for attorneys’ fees, which the Court granted in September 2024, noting the plaintiffs’ counsel’s “stunning” failure to conduct a basic pre-suit investigation.
After reviewing InComm's billing records, the Court issued a second order, mandating that Plaintiffs’ counsel pay InComm fees in the amount of $366,034. The Court's rare decision to award attorneys’ fees is welcome news for InComm, which was forced to defend a meritless suit for nearly two years. It is also an important reminder that those who bring baseless lawsuits can and will be held accountable and required to absorb the costs of their conduct.
