A federal district court properly dismissed a claim under the California anti-spam law, California Business and Professions Code § 17529.5(a), for failure to satisfy the hightened pleading standards applicable to fraud claims under Fed. R. Civ. P. 9(b), the U.S. Court of Appeals for the Ninth Circuit ruled. The court pointed out that the provisions of the California law claimed to have been violated contain terms such as "falsified," "misleading," and "forged," which are terms common to fraud allegations, and the plaintiff's complaint repeatedly described the e-mailed advertisements in question as "fraudulent." The court also agreed with the district court that the plaintiff's claims for liquidated damages were time-barred, because such damages constitute a "penalty" under California Code of Civil Procedure § 340(a)’s one-year statute of limitations.
Hypertouch, Inc. v. Azoogle.com, Inc., 2010 U.S. App. LEXIS 14121 (9th Cir. July 9, 2010) (unpublished) Download PDF