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Golo, LLC v. Highya, LLC

Citation: 310 F. Supp. 3d 499Docket: Civil Action No. 17–2714

Court: District Court, E.D. Pennsylvania; May 4, 2018; Federal District Court

Narrative Opinion Summary

In this case, the plaintiff, a company offering a weight loss program, sued defendants who operate consumer review websites, alleging unfair competition, trade libel, false advertising, and trademark infringement under the Lanham Act and Pennsylvania state law. The plaintiff claimed that the defendants’ reviews were unfair, inaccurate, and constituted commercial speech intended to harm their business. However, the court concluded that the reviews did not meet the criteria for commercial speech as they did not promote a competing product or propose a commercial transaction. Consequently, the Lanham Act claims were dismissed. The court further found the plaintiff's trade libel claims deficient, lacking allegations of false statements, malice, and pecuniary loss. Some claims were also time-barred due to the statute of limitations. As a result, the court dismissed the case without prejudice, ruling that the plaintiff had not sufficiently established claims under either federal or state law. The defendants’ motions to dismiss were granted in full, leading to the dismissal of the action.

Legal Issues Addressed

Lanham Act and Commercial Speech

Application: The court determined that the reviews published by the defendants did not qualify as commercial speech, which is necessary for a Lanham Act claim.

Reasoning: The court concludes that the reviews do not qualify as commercial speech, which is a prerequisite for Lanham Act claims.

Statute of Limitations for Trade Libel

Application: The court dismissed plaintiff's trade libel claims as time-barred, noting the one-year statute of limitations and the timing of the complaint filing.

Reasoning: Pennsylvania's statute of limitations for trade libel claims is one year from the date of first publication. Defendants assert that Plaintiff's claims regarding a review on HighYa are time-barred, as the review was published in March 2016, and the case was filed on June 16, 2017.

Trade Libel under Pennsylvania Law

Application: Plaintiff's claim of trade libel lacks sufficient allegations of false statements, pecuniary loss, and actual malice.

Reasoning: Plaintiff's claim for trade libel under Pennsylvania law fails because it does not adequately plead the necessary elements: a false statement intended to cause pecuniary loss, actual pecuniary loss, and actual malice.

Unfair Competition under the Lanham Act

Application: The court dismissed the unfair competition claim, finding no commercial speech or false advertising by the defendants.

Reasoning: The court finds that Plaintiff fails to state a claim under the Lanham Act and Pennsylvania Unfair Competition law.