Rappaport v. Under Armour, Inc.

CourtDistrict Court, E.D. New York
DecidedSeptember 11, 2025
Docket2:24-cv-07558
StatusUnknown

This text of Rappaport v. Under Armour, Inc. (Rappaport v. Under Armour, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rappaport v. Under Armour, Inc., (E.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK

LINDA R. RAPPAPORT, on behalf of herself and all others similarly situated, MEMORANDUM & ORDER Plaintiff, 24-CV-7558 (HG) v.

UNDER ARMOUR, INC., a Maryland corporation, and DOES 1-50, inclusive,

Defendants.

HECTOR GONZALEZ, United States District Judge: Plaintiff brings this case under New York General Business Law (“GBL”) §§ 349 and 350, challenging Under Armour, Inc.’s (“Defendant”) alleged practice of pricing its merchandise in a way that misleads consumers. Plaintiff, on behalf of herself and others similarly situated, commenced this putative class action claiming that Defendant engaged in a deceptive pricing and advertising scheme that led her and others to believe that merchandise they purchased from Defendant’s outlet stores and on its outlet website was subject to a substantial markdown from an allegedly false “original” or “reference” price. ECF No. 1.1 Defendant moves to dismiss the Complaint pursuant to Federal Rule of Civil Procedure 12(b)(1) and 12(b)(6). ECF No. 11-1. For the following reasons, Defendant’s motion to dismiss with prejudice is GRANTED.

1 Unless otherwise indicated, the Court omits all internal quotation marks, alteration marks, emphases, footnotes, and citations when quoting cases and the parties’ papers. The Court refers to the pages assigned by the Electronic Case Files system (“ECF”). BACKGROUND2 Like other “outlet store” cases that have arrived in federal court in recent years, Plaintiff “challenges defendant’s alleged practice of pricing its products in a way that misleads buyers into believing that they are getting a steep discount on products when, in fact, there is no

discount at all.” Binder v. Premium Brands Opco LLC, No. 23-cv-3939, 2024 WL 2978506, at *1 (S.D.N.Y. June 11, 2024) (“Premium Brands”); see also Binder v. Michael Kors (USA), Inc., No. 23-cv-3941, 2024 WL 3227943, at *1 (S.D.N.Y. June 28, 2024). Plaintiff’s claims center around her purchase of one item, a “Women’s Mid Crossback Printed Sports Bra,” from an Under Armour Factory outlet store in April 2024. ECF No. 1 ¶ 39. Plaintiff alleges that the item was displayed alongside materials that indicated the item was marked for an additional 50% off an original price (or “reference price”) of $34.97, for a price of $17.48 (the “discount price”), leading her to believe “she was receiving a significant discount on the item she had chosen.” Id. ¶¶ 39–41. However, Plaintiff alleges that this discount was part of a “fake discount scheme” that not

only deceived her into purchasing the sports bra that “was worth less than the amount she paid for it”, but also “artificially inflated consumer demand,” which enables Defendant to charge higher prices for the “supposedly discounted” products they offer at its Under Armour Factory stores (the “outlet stores”) and online at underarmour.com/en-us/c/outlet/ (the “outlet website”). Id. ¶¶ 35–45.

2 The Court “recite[s] the substance of the allegations as if they represented true facts, with the understanding that these are not findings of the [C]ourt, as [I] have no way of knowing at this stage what are the true facts.” In re Hain Celestial Grp., Inc. Sec. Litig., 20 F.4th 131, 133 (2d Cir. 2021). According to Plaintiff, her counsel “conducted a large-scale, comprehensive investigation” into Defendant’s pricing practices at its outlet stores and the outlet website and collaborated with “qualified expert economists and consultants,” who determined the “objective measure by which Plaintiff [and other consumers]” overpaid for the products they purchased

from Defendant’s outlet stores and website. Id. ¶¶ 39, 46, 56. Plaintiff commenced this case by filing a class action complaint on October 29, 2024. See ECF No. 1. Plaintiff alleges that Defendant’s conduct violates various New York consumer protection laws, specifically, the New York Consumer Protection from Deceptive Acts and Practices Act, GBL § 349, and New York False Advertising Act, GBL § 350. Id. ¶ 7. Plaintiff also alleges that Defendant’s conduct violates the Federal Trade Commission Act (“FTCA”), 15 U.S.C. § 52(a). Id.3 On December 13, 2024, Defendant filed a motion to dismiss the complaint. See ECF No. 11-1. Plaintiff filed her opposition a month later, ECF No. 12, and Defendant filed its reply on January 27, 2025, ECF No. 15. LEGAL STANDARDS

I. Rule 12(b)(1) “A case is properly dismissed for lack of subject matter jurisdiction under Rule 12(b)(1) when the district court lacks the statutory or constitutional power to adjudicate it.” Makarova v. United States, 201 F.3d 110, 113 (2d Cir. 2000). To survive a motion to dismiss for lack of

3 Plaintiff cursorily alleges that Defendant violated the FTCA, see ECF No. 1 ¶ 7, but appears to abandon this claim, or at the very least, neglects to mention it elsewhere in the Complaint. Notably, she does not include an FTCA claim as a standalone cause of action. See id. at 35–39. Plaintiff also omits any mention of the FTCA in her opposition to Defendant’s motion to dismiss, ECF No. 12. Accordingly, the FCTA claim is not properly plead. “[A] complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” O’Donnell v. AXA Equitable Life Ins., 887 F.3d 124, 128 (2d Cir. 2018); see also Michael Kors (USA), Inc., 2024 WL 3227943, at *2 n.4 (applying the same approach to plaintiffs’ “cursorily allege[d]” FCTA claim). subject matter jurisdiction based on standing pursuant to Rule 12(b)(1), the plaintiff “must allege facts that affirmatively and plausibly suggest that it has standing to sue.” Amidax Trading Grp. v. S.W.I.F.T. SCRL, 671 F.3d 140, 145 (2d Cir. 2011). Where the defendant places jurisdictional facts in dispute, a court may properly consider “evidence relevant to the jurisdictional question

[that] is before the court.” Robinson v. Gov’t of Malaysia, 269 F.3d 133, 140 (2d Cir. 2001). However, if “the defendant challenges only the legal sufficiency of the jurisdictional allegations, the court must take all facts alleged in the complaint as true and draw all reasonable inferences in favor of plaintiff.” Id. II. Rule 12(b)(6) To survive a motion to dismiss pursuant to Rule 12(b)(6), “a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Sacerdote v. N.Y. Univ., 9 F.4th 95, 106 (2d Cir. 2021) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). In assessing a complaint, courts “must construe it liberally, accepting all factual allegations therein as true and drawing all reasonable inferences in the plaintiffs’ favor.” Id. at

106–07. The Court must, however, disregard any “conclusory allegations, such as formulaic recitations of the elements of a cause of action.” Id. at 107 (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007)). And, when “the allegations of a complaint are materially inconsistent with the evidence a plaintiff relies on to make those allegations, [courts] may easily conclude that plaintiffs’ claims lack the facial plausibility necessary to survive a motion to dismiss.” Axon v. Florida’s Nat. Growers, Inc., 813 F. App’x.

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