Ida Molayem, Michael Gathen, and Keith White, on behalf of themselves and all others similarly situated v. Ralph Lauren Corporation, Ralph Lauren Retail, Inc., and Does 1-50, inclusive

CourtDistrict Court, S.D. New York
DecidedSeptember 29, 2025
Docket1:24-cv-04816
StatusUnknown

This text of Ida Molayem, Michael Gathen, and Keith White, on behalf of themselves and all others similarly situated v. Ralph Lauren Corporation, Ralph Lauren Retail, Inc., and Does 1-50, inclusive (Ida Molayem, Michael Gathen, and Keith White, on behalf of themselves and all others similarly situated v. Ralph Lauren Corporation, Ralph Lauren Retail, Inc., and Does 1-50, inclusive) 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
Ida Molayem, Michael Gathen, and Keith White, on behalf of themselves and all others similarly situated v. Ralph Lauren Corporation, Ralph Lauren Retail, Inc., and Does 1-50, inclusive, (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK IDA MOLAYEM, MICHAEL GATHEN, and KEITH WHITE, on behalf of themselves and all others similarly situated, Plaintiffs, -against- 24-CV-4816 (JGLC) RALPH LAUREN CORPORATION, RALPH OPINION AND ORDER LAUREN RETAIL, INC., and DOES 1-50, inclusive, Defendants.

JESSICA G. L. CLARKE, United States District Judge: Ralph Lauren outlet stores sell products marked at significant discounts. Plaintiffs, shoppers at the outlet stores, allege that these discounts are false—namely, that the items were never offered at their original prices, and the discounts deceptively induced consumers to purchase the goods on the belief that they had scored a bargain. Plaintiffs have brought consumer rights claims against Ralph Lauren under New York, California, and Oregon law, as well as claims for equitable relief. Ralph Lauren argues that Plaintiffs never checked their mainline stores and other product channels, where the items were offered for full price. On this and other grounds, Ralph Lauren moves to dismiss all claims. For the reasons stated herein, that motion is GRANTED with respect to the New York claims, but DENIED with respect to the California and Oregon claims. BACKGROUND The following facts are, unless otherwise noted, taken from the amended complaint (ECF No. 27, the “First Amended Complaint” or the “FAC”) and presumed to be true for the purposes of the instant motion. See LaFaro v. N.Y. Cardiothoracic Grp., PLLC, 570 F.3d 471, 475 (2d Cir. 2009). Plaintiffs Ida Molayem, Michael Gathen, and Keith White (collectively, “Plaintiffs”) are consumers residing in California, New York, and Oregon respectively. FAC ¶¶ 55, 59, 63. Each

alleges that at some point, they visited a Ralph Lauren Polo Factory Store in their respective states in late 2023. Id. During these visits, Plaintiffs noticed numerous signs within the Polo Factory Store advertising various “__% Off” discounts on items throughout the store. Id. ¶¶ 56, 60, 64. These signs were accompanied by what purported to be “original” prices on their price tags. Id. ¶¶ 57, 61, 65. Plaintiffs purchased these “discounted” items, believing that they were receiving significant discounts on each item. Id. Plaintiffs allege they would not have made the purchases were it not for the significant bargain they believed they were receiving. Id. Plaintiffs now bring claims for violation of California’s Unfair Competition Law (“UCL”), California’s Consumers Legal Remedies Act (“CLRA”), New York Consumer Protection From Deceptive Acts and Practices Act (“NYDAPA”), New York False Advertising Law (“NYFAA”), and

Oregon’s Unlawful Trade Practices Act (“UTPA”). FAC ¶¶ 101–172. Plaintiffs seek damages as well as equitable relief. Id. at 64–65. This lawsuit was originally brought on June 25, 2024, by Plaintiff Sarah Ratra, who has since been dismissed from the case. See ECF No. 1. In that complaint, Plaintiff described that counsel has been investigating Polo Factory outlet stores since February 2022. ECF No. 1 at 17– 18. This investigation found that items remained continuously discounted on a daily basis throughout the investigation period, suggesting that Polo Factory merchandise was never offered for sale at the full “original” price at the Polo Factory outlet stores. Id. ¶ 31. On September 18, 2024, Defendants filed a motion to dismiss, which argued, among other things, that Plaintiff Sarah Ratra had failed to include allegations of a sufficient pre- complaint investigation, including an investigation of other product channels, as required under consumer laws. See ECF No. 23; ECF No. 24 at 10–14. On September 30, 2024, Plaintiffs

subsequently filed their First Amended Complaint, which is now the operative complaint. ECF No. 27. The FAC replaces Ratra with the present three plaintiffs, and further alleges that in September 2024, Plaintiffs’ counsel investigated the mainline Ralph Lauren retail stores and websites. See id. ¶¶ 32–38. These mainline investigations found that only one of the sixteen items purchased by Plaintiffs could be found in the mainline Ralph Lauren e-commerce store, ralphlauren.com. Id. ¶ 39. Although Defendants represent that former Plaintiff Ratra’s two items were in fact sold on the mainline website at full price, ECF No. 34 at 6, the FAC alleges that Defendants intentionally obfuscate consumers’ ability to cross-reference merchandise sold at the mainline stores and at the outlet stores. Id. ¶¶ 43–49. Plaintiffs further allege that their investigation suggests the mainline store and outlet stores sell separate and exclusive product

lines. Id. ¶ 50. Plaintiffs offer economic analysis through a regression model comparing the reference price and the sales price, and accounting for several variable factors such as the clothing type and target demographic. Id. ¶¶ 67–81. Plaintiffs allege that their resulting model reflects that for every $1 increase in reference price, there is a resulting increase of $0.6965 in sales price. Id. ¶ 74. Defendants once more moved to dismiss this case on November 18, 2024. ECF No. 33, 34 (“Mot.”). Plaintiffs oppose. ECF No. 37 (“Opp.”). LEGAL STANDARD In reviewing a motion to dismiss under Rule 12(b)(6), the Court must “constru[e] the complaint liberally, accepting all factual allegations in the complaint as true, and drawing all reasonable inferences in the plaintiff’s favor.” Goldstein v. Pataki, 516 F.3d 50, 56 (2d Cir.

2008) (internal citation omitted). A claim will survive a Rule 12(b)(6) motion only if the plaintiff alleges facts sufficient “to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that a defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citing Twombly, 550 U.S. at 556). “Determining whether a complaint states a plausible claim for relief will . . . be a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.” Id. at 679. “Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Id. at 678. If a complaint does not state a plausible claim for relief, it must be dismissed. Id. at 679.

DISCUSSION This section proceeds in three parts. First, the Court determines that Plaintiffs have not adequately alleged injury under New York law. Second, the Court finds that Plaintiffs have met the Rule 9(b) pleading standard to proceed on California and Oregon claims. And finally, the Court concludes that, at this preliminary stage, Plaintiffs have standing to seek injunctive and equitable relief. I. Plaintiffs Have Not Adequately Alleged Injury Under New York Law Plaintiffs’ New York claims allege violations of Sections 349 and 350 of the New York General Business Law. These provisions prohibit businesses from engaging in deceptive acts or practices and false advertising. Izquierdo v. Panera Bread Co., 450 F. Supp. 3d 453, 461 (S.D.N.Y. 2020). “To state a claim under either section [349 or 350], a plaintiff must plead facts to show that (1) the challenged transaction was consumer-oriented; (2) defendant engaged in deceptive or materially misleading acts or practices; and (3) plaintiff was injured by reason of

defendant’s deceptive or misleading conduct.” Id. (internal quotation marks and citation omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Summers v. Earth Island Institute
555 U.S. 488 (Supreme Court, 2009)
Cacchillo v. Insmed, Inc.
638 F.3d 401 (Second Circuit, 2011)
Hollingsworth v. Perry
133 S. Ct. 2652 (Supreme Court, 2013)
LaFaro v. New York Cardiothoracic Group, PLLC
570 F.3d 471 (Second Circuit, 2009)
Kearns v. Ford Motor Co.
567 F.3d 1120 (Ninth Circuit, 2009)
P & P MARKETING, INC. v. Ditton
746 F. Supp. 1354 (N.D. Illinois, 1990)
Orlander v. Staples, Inc.
802 F.3d 289 (Second Circuit, 2015)
Pearson v. Philip Morris, Inc.
361 P.3d 3 (Oregon Supreme Court, 2015)
Kathleen Sonner v. Premier Nutrition Corp.
971 F.3d 834 (Ninth Circuit, 2020)
Bly-Magee v. California
236 F.3d 1014 (Ninth Circuit, 2001)
Buonasera v. Honest Co.
208 F. Supp. 3d 555 (S.D. New York, 2016)
Denney v. Deutsche Bank AG
443 F.3d 253 (Second Circuit, 2006)
Nicosia v. Amazon.com, Inc.
834 F.3d 220 (Second Circuit, 2016)
Preira v. Bancorp Bank
885 F. Supp. 2d 672 (S.D. New York, 2012)
Davidson v. Kimberly-Clark Corp.
889 F.3d 956 (Ninth Circuit, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
Ida Molayem, Michael Gathen, and Keith White, on behalf of themselves and all others similarly situated v. Ralph Lauren Corporation, Ralph Lauren Retail, Inc., and Does 1-50, inclusive, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ida-molayem-michael-gathen-and-keith-white-on-behalf-of-themselves-and-nysd-2025.