Court Denies Sheertex’s Motion to Dismiss for Phantom Markdowns Class Action

Sep 25, 2024 | Class Actions

Crosner Legal is excited to announce a significant victory in our ongoing fictitious pricing case against Favorite World, LLC, also known as ecommerce giant Sheertex. On September 17, 2024, the United States District Court for the Central District of California issued a ruling denying the defendant’s motion to dismiss most of the plaintiffs’ claims. This marks another important step in holding large companies accountable for deceptive pricing practices that mislead consumers.

The lawsuit, brought on behalf of our clients, alleges that Sheertex misrepresented its products as being perpetually on sale on their website, www.shapermint.com. The products were rarely, if ever, offered at the full “regular” price, thus allegedly deceiving customers into thinking they were receiving a limited-time deal. The plaintiffs argue that this practice violates California’s Consumer Legal Remedies Act (CLRA) and Unfair Competition Law (UCL).

In their motion to dismiss, Sheertex claimed that the plaintiffs lacked standing to bring these claims because they had only purchased specific products and therefore couldn’t represent consumers who bought other items. They also argued that the plaintiffs failed to meet the legal standard for particularity in fraud claims under Rule 9(b). However, the court sided with Crosner Legal, ruling that these issues were more appropriately resolved at later stages of the litigation, such as during class certification or summary judgment. The court found that the plaintiffs had sufficiently alleged the “who, what, when, where, and how” of Sheertex’s deceptive pricing scheme, meeting the standard for the pleading stage.

This decision is a critical win for consumers, ensuring that the claims against Sheertex will proceed, and it paves the way for further developments as we seek justice for those who were misled by false sale promotions. We are proud of our team’s hard work and commitment to this case, and we will continue to fight on behalf of consumers.

If you have experienced similar deceptive pricing practices, we encourage you to contact Crosner Legal for more information about your rights.

  • Crosner Legal: 9440 Santa Monica Blvd. #301, Beverly Hills CA 90210
  • Phone: (866) 276-7637 [CROSNER]
  • Email: intake@crosnerlegal.com
  • Fax: (310) 510-6429

Thank you for your continued trust as we pursue consumer justice.

This blog post is intended for informational purposes only and does not constitute legal advice.