Class Certification Denied in Lawsuit Against Donald Trump Regarding ACN Promotion
A recent legal development has seen the denial of class certification for plaintiffs attempting to initiate a class-action lawsuit against Donald Trump in connection with his promotion of ACN.
The order, issued on October 17th 2023, cited concerns about the uncertainty surrounding whether a potential class member had been exposed to all or some of the four alleged misstatements outlined in the plaintiffs’ original 2018 Complaint. These four alleged misstatements include claims that ACN was a low-risk venture, that its products were commercially viable, that Trump had conducted due diligence on ACN, and the failure to disclose any financial compensation received for his endorsement.
Following an evaluation of the exposure issue, the court reached the following conclusion: “Even assuming that all potential class members were exposed to at least one of the alleged false statements, such as the Trump endorsement without disclosing his substantial financial compensation, the reliance element of the plaintiffs’ claims poses insurmountable obstacles to proceeding as a class action.”
The plaintiffs were given until October 24th to present arguments for maintaining their claims as a class-action suit.
On October 24th, a six-page filing was submitted, suggesting that “the Court can decide on Defendants’ fully-briefed motion for summary judgment and proceed to trial, which is currently scheduled to commence on January 29, 2024. This is the course of action that the plaintiffs believe the Court should pursue.”
Additionally, on the same day, the remaining Trump Defendants requested the case be transferred from the Southern District of New York to the respective local jurisdictions of the plaintiffs. Alternatively, they sought a dismissal of the case.
The remaining Trump Defendants in the case include the Trump Corporation and Donald Trump himself, as Trump’s children were previously removed as defendants in May.
As we await the court’s decisions on the aforementioned motions, stay tuned for further updates on the unfolding developments in this case.
