Allen v. IM Solutions, LLC

83 F. Supp. 3d 1196, 2015 U.S. Dist. LEXIS 814, 2015 WL 71468
CourtDistrict Court, E.D. Oklahoma
DecidedJanuary 6, 2015
DocketCase No. CIV-14-213-JHP
StatusPublished
Cited by4 cases

This text of 83 F. Supp. 3d 1196 (Allen v. IM Solutions, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen v. IM Solutions, LLC, 83 F. Supp. 3d 1196, 2015 U.S. Dist. LEXIS 814, 2015 WL 71468 (E.D. Okla. 2015).

Opinion

OPINION AND ORDER

JAMES H. PAYNE, District Judge.

Now before the Court are the Motion to Dismiss of Defendants IM Solutions, LLC and LeadingResponse [Doc. No. 31], Plaintiffs Response to that motion [Doc. No. 51], and IM Solutions, LLC’s and Leadin-gResponse’s Reply Brief in Support of Their Motion to Dismiss [Doc. No. 57]. For the reasons set forth below, Defendants’ motion is GRANTED.

BACKGROUND

According to the Complaint filed on June 3, 2014, Plaintiffs are lawyers and their respective law firms. Plaintiff Anthony Allen is a resident of Muskogee, Oklahoma and practices as a member of the firm of Allen & Wisner, LLC, an Oklahoma limited liability company that has its principal office in Muskogee, Oklahoma. Plaintiff James E. Blount, IV is a resident of Shelby County, Tennessee and practices as a member of the firm of Blount Law Firm, PLLC, a Tennessee limited liability company that has its principal office in Collierville, Tennessee. Blount alleges that he owns the internet domain names “9011awyers.com” and “9011awyers.net;” Allen alleges that his firm’s website was hosted under the domain name “oklaho-maslawfirm.com” until April 2013, and after that date under the domain name “al-lenwisner.com.” Plaintiffs allege they own common law trademarks to their respective individual and law firm names and to their website domain names. Plaintiffs allege that their individual and firm names and their respective websites are inherently distinctive marks and are marks that have acquired secondary meaning. The Complaint is filed as a putative class action on behalf of all persons in the United States who provide professional legal ser[1200]*1200vices and who utilize the Internet to publicize or advertise their services.1

Defendant IM Solutions, LLC (“IMS”) is alleged to be a Nevada limited liability-company with its principal place of business in Dallas, Texas.2 Defendant Leadin-gResponse is alleged to be a limited liability company formed under the laws of an unknown jurisdiction and having its principal place of business in Stamford, Connecticut. However, the O’Sullivan Declaration states that “LeadingResponse” is not a limited liability company but is the assumed name by which RME Group Holding Company, a Delaware corporation (“RME”), does business.3 For purposes of its discussion, the Court will treat RME as the real party in interest.4

Plaintiffs allege that IMS and RME (along with other Defendants) engaged in unfair competition in violation of Lanham Act § 43(a), 15 U.S.C. § 1125(a), committed deceptive trade practices that violate Okla. Stat. tit. 78, §§ 51 et seq., tortiously interfered with Plaintiffs’ prospective economic advantage protected by common law, and engaged in a civil conspiracy with the other defendants. IMS and RME allegedly did so by causing “pop-up” advertisements to appear on Plaintiffs’ websites through which legal services would be solicited for lawyers (but not Plaintiffs) who bought client leads from Defendants. These so-called Lead-Buying Lawyers would pay Defendants for leads to prospective clients looking for legal services. Plaintiffs allege that IMS engages or affiliates with companies that use adware or malware browser plug-ins on the computers of millions of consumers without their authorization or knowledge. When a consumer browses the website of a lawyer who is not one of Defendants’ Lead-Buying Lawyers, such as Plaintiffs, these plug-ins cause a form to “pop up” on the consumer’s computer screen. The pop-up invites the consumer to provide contact information without indicating that the form is not associated with the website which the consumer is viewing. If the consumer fills in the pop-up form, IMS immediately routes the contact information to Defendant Reed Elsevier, which them promptly calls the consumer and connects the consumer to a representative of the LexisNex-is LawyerLocator service, which informs the consumer that he or she will be referred to one of Defendants’ Lead-Buying Lawyers. Plaintiff allege that IMS is paid by Lead-Buying Lawyers for each prospect, and IMS in turn pays Reed Elsevier on a per-lead basis.

Plaintiffs allege that Defendants’ use of pop-up ads to solicit consumers who are browsing the websites of Plaintiffs and similarly-situated lawyers serves unlawfully to confuse the consumers regarding the [1201]*1201origin of the legal services being offered, to pass off the services of Defendants’ Lead-Buying Lawyers as those of Plaintiffs, and to divert those consumers who likely sought the services of Plaintiffs to the services of Lead-Buying Lawyers.

Defendants aver in both the O’Sullivan Declaration and in the DallAequa Declaration that RME is merely a holding company that has no employees and no business operations, and that RME has no connection to Oklahoma in any way. Defendants aver in the O’Sullivan Declaration and in a Supplemental Declaration by O’Sullivan attached to Defendants’ Reply Brief that IMS uses the internet to generate client leads for law firms and advocacy groups, but that IMS does not generate leads by placing or causing others to place pop-up ads on individual computers. IMS avers that it does not download adware or mal-ware to computer users’ browsers, and it has not authorized or directed any third person or entity to do so. IMS denies that the pop-ups copied in Plaintiffs’ Complaint were authorized or directed by IMS. According to O’Sullivan, over 90% of the leads obtained by IMS are from websites maintained by IMS; less than 10% are leads purchased from other lead generators, and IMS is not involved in the generation of those other leads.

With respect to its contacts with Oklahoma, IMS avers that none of its computer servers is located in Oklahoma. IMS’s websites are accessible through the internet anywhere in the world. IMS does not have any Oklahoma — specific advertisements or websites. IMS has two law firm customers based in Oklahoma. One of the firms purchases approximately 200 social security disability and automobile accident leads per month; the other firm purchases approximately 60 leads a month related to automobile accidents and other areas of the law. Together, the two Oklahoma law firms generate approximately 0.8% of IMS’s total revenue. IMS does not sell any product or service to individuals in Oklahoma, through its websites or otherwise. It does not have any offices or employees in Oklahoma, does not have any Oklahoma bank accounts, and does not own any real or personal property in Oklahoma. Representatives of IMS do not regularly travel to Oklahoma, and their limited travel to this state has been to one of the law firms that purchases leads IMS has generated through its websites.

In their Reply, Plaintiffs challenge the credibility of O’Sullivan, primarily on the ground that in his relatively short tenure as an officer of IMS he could not have personal knowledge of the facts contained in his Declaration.5 In addition, Plaintiffs point out what they perceive to be incon-[1202]*1202sisteneies in the jurisdictional facts presented by Defendants.

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Cite This Page — Counsel Stack

Bluebook (online)
83 F. Supp. 3d 1196, 2015 U.S. Dist. LEXIS 814, 2015 WL 71468, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-im-solutions-llc-oked-2015.