Ham v. Lenovo Group Ltd.

CourtDistrict Court, S.D. New York
DecidedMarch 28, 2023
Docket1:22-cv-05131
StatusUnknown

This text of Ham v. Lenovo Group Ltd. (Ham v. Lenovo Group Ltd.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ham v. Lenovo Group Ltd., (S.D.N.Y. 2023).

Opinion

USDC SDNY UNITED STATES DISTRICT COURT DOCUMENT SOUTHERN DISTRICT OF NEW YORK ELECTRONICALLY FILED DOC#: Seger ANTHONY HAM, individually and on behalf of all DATE FILED: 3/28/2023 others similarly situated, Plaintiff, 22-ev-05131 (ALC) -against- OPINION AND ORDER LENOVO (UNITED STATES) INC., Defendant. ANDREW L. CARTER, United States District Judge: Plaintiff Anthony Ham (“Plaintiff”) brings this putative class action! suit against Defendant Lenovo (US) Inc. (“Lenovo” or Defendant) * alleging (1) deceptive acts or practices in violation of the New York Deceptive Practice Act, N.Y.G.B.L. § 349 et seg.; (2) false advertising in violation New York Deceptive Practice Act, N.Y.G.B.L. § 350 et seq.; (3) breach of express warranty; (4) breach of implied warranty; (5) fraud; and (6) unjust enrichment. Defendant moved to dismiss Plaintiff's complaint for lack of subject matter jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(1) and for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6). For the reasons discussed below, the Court finds that Plaintiff lacks standing to seek injunctive relief. The Court dismisses Plaintiffs other causes of action for failure to state a claim. Defendant’s Motion is GRANTED.

' Plaintiff defines the Class as all persons in the United States who purchased any of the Products on Defendants’ website, Lenovo.com, for which Defendants advertised both a List Price or Estimated Value and a Sale Price. ? Lenovo Group Ltd. (“LGL”) has been dismissed. See ECF No. 16. The Clerk of the Court is respectfully directed to change the caption of this case to remove LGL.

BACKGROUND I. Procedural Background Plaintiff Anthony Ham (“Plaintiff”) commenced this action on June 17, 2022. ECF No. 1. The Complaint alleges, inter alia, that the Defendant violated N.Y.G.B.L. §§ 349 and 350. Defendant filed its motion to dismiss, (the “Motion”), pursuant to Fed. R. Civ. P. 12(b)(1) and Fed. R. Civ. P. 12(b)(6) on August 18, 2022. ECF Nos. 21-22. Defendant also filed supplementary declarations. ECF Nos. 23-24. Plaintiff filed his opposition on September 15, 2022 (“Opp.”). ECF No. 25. Defendant’s reply memorandum was filed on October 17, 2022 (“Reply”), ECF No. 28, alongside a third declaration. ECF No 29. On February 23, 2023 Defendant filed a Notice of Supplemental Authority. ECF No. 30.3 The motion is deemed fully briefed. After careful

consideration, Defendant’s motion to dismiss is GRANTED. II. Factual Background The following facts are taken from the allegations contained in Plaintiff’s Complaint, which are presumed to be true for purposes of this motion to dismiss. Plaintiff Ham is a resident of Champaign, Illinois and is a citizen of Illinois. Compl. ¶ 13. Defendant Lenovo is a Delaware corporation with its headquarters in Morrisville, North Carolina. Id. ¶ 17. The Defendant designs, manufactures advertises, and sells the “Products” at issue.4 Lenovo is the single largest manufacturer of notebook computers in the world and one of the largest

3 On February 24, 2023, Plaintiff filed a response to the Defendant’s Notice of Supplemental Authority. ECF No. 31. On March 7, 2023 Defendant filed a premotion conference letter requesting leave to file a motion to strike the Plaintiff’s response in its entirety. ECF No. 32. To date, Plaintiff has not responded to Defendant’s letter. Plaintiff’s response improperly responds to arguments raised by Defendant in its Reply brief and it therefore constitutes an impermissible sur-reply. The Court notes that Plaintiff did not request permission to file a sur-reply in accordance with this Court’s Individual Practices. Therefore, the Court will not consider the Plaintiff’s response at ECF No. 31. Defendant’s premotion request is DENIED. 4 Products is defined as Defendant’s ThinkPad, ThinkBook, IdeaPad, Yoga, Legion, Lenovo, and Chromebook laptops, its ThinkCentre, IdeaCentre, Legion, Yoga, and ThinkStation desktops, its ThinkPad and ThinkStation workstations, its Lenovo tablets, and its ThinkVision and Lenovo monitors. Compl. ¶ 3. desktop computer manufacturers. Id. ¶ 2. Lenovo operates a retail website, Lenovo.com, (“the Website”) where it offers its laptop computers, desktop computers, and computer peripherals for sale directly to consumers. Id. ¶ 3. Plaintiff asserts that Defendant deceives its customers through a “years-long policy of

fabricating fictitious valuations for its laptop and desktop computers, falsely representing those valuations as the “estimated value” of their products, and then advertising purported discounts based on those fictitious valuations.” Id. ¶ 1. The Plaintiff alleges that Lenovo “fabricates a fictious original price,” sometimes called the “Web Price” or an “explicit representation of a particular value or level of quality,” referred to as the “Estimated Value”, “promises users substantial ‘savings’ with a significant discount off the fictitious price,” and “presents users with a comparatively lower price to pay at the point of sale (‘Sale Price’).” Id. ¶ 5. Plaintiff alleges that these representations “induce reasonable consumers to believe that the “Web Price”5 or “Estimated Value” represents either the product’s normal price on Defendants’ website and/or the prevailing price in the market” and that it “also induce consumers to believe the List Price or Estimated Value

is the true value of the PC being advertised and that, therefore, the quality and value of the Product, in whole, is commensurate with the List Price or Estimated Value.” Id. ¶¶ 6-7. Plaintiff alleges that these advertised List Prices and purported Discounts are “completely

5The Complaint alleges that the “Web Price” is a “fictitious original price,” compl. ¶ 5, but the Complaint does not allege a Lenovo Website definition for “Web Price.” The Complaint groups the terms “Web Price” and “Estimated Value” together and refers to them as a “List Price.” The Complaint defines the List Price as the “fictious, original price” listed next to a Product. Id. ¶ 5. Plaintiff alleges that the current List Price on the Website is labelled as the “Estimated Value.” Id. ¶ 6. The Complaint defines “Estimated value” as an “explicit representation of a particular value or level of quality” listed next to a Product on Lenovo.com. Id. The Lenovo Website defines Estimated Value as the following: “Lenovo’s estimate of product value based on industry data, including the prices at which Lenovo and/or third-party retailers and e-tailers have offered or valued the same or comparable products. Third-party data may not be based on actual sales.” Id. illusory or grossly overstated,” that Defendant “fabricate[s] a number using undisclosed formulas bearing no resemblance to the market, and they use the fictitious List Price or Estimated Value to create the appearance of a significant price discrepancy and the impression of significantly better quality, higher value Products and greater savings for their customers.” Id. ¶¶ 9-10.

In support of these allegations, Plaintiff points to his own experience purchasing a Product, id. ¶¶ 37-54, and the Complaint includes descriptions of the Website alongside screengrabs of the checkout process on the Website. Id. ¶¶ 23-36. A. Alleged Misrepresentations to Consumers Plaintiff alleges that when a consumer visits Lenovo.com to shop for PCs, they are immediately greeted with a banner claiming savings on current sales. Id. ¶ 23.

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Ham v. Lenovo Group Ltd., Counsel Stack Legal Research, https://law.counselstack.com/opinion/ham-v-lenovo-group-ltd-nysd-2023.