Stout’s Intellectual Property team supported defense counsel in securing a favorable outcome for a defendant facing a false advertising claim. The defendant manufactures and sells ferromagnetic detection systems designed for MRI zone protection.

The plaintiff, a competitor offering a similar product, filed a false advertising lawsuit against the defendant regarding its ferromagnetic detection systems. Specifically, the plaintiff alleged that the defendant made wrongful statements about the quality and accuracy of the plaintiff’s product in marketing materials allegedly distributed to third parties. The lawsuit, filed in the Northern District of Ohio, also included tortious interference with business relations, negligent misrepresentation, and defamation allegations.

During expert discovery, we prepared multiple damages reports assessing the reasonableness of the plaintiff’s damages claims and defended those conclusions during deposition. Leading up to trial, we supported counsel in challenging the plaintiff’s claims, which resulted in the exclusion of the plaintiff’s expert’s damages opinion.

Faced with the challenge of presenting its damages claims only through fact witness testimony, the plaintiff settled the case, resulting in a favorable outcome for our client.