Rfactr, Inc. v. McDowell

2025 NCBC 64
CourtNorth Carolina Business Court
DecidedOctober 16, 2025
Docket18-CVS-12299
StatusPublished

This text of 2025 NCBC 64 (Rfactr, Inc. v. McDowell) is published on Counsel Stack Legal Research, covering North Carolina Business Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rfactr, Inc. v. McDowell, 2025 NCBC 64 (N.C. Super. Ct. 2025).

Opinion

rFactr, Inc. v. McDowell, 2025 NCBC 64.

STATE OF NORTH CAROLINA IN THE GENERAL COURT OF JUSTICE SUPERIOR COURT DIVISION MECKLENBURG COUNTY 18CVS012299-590

RFACTR, INC.; RICHARD BRASSER; and GREG GENTNER,

Plaintiffs/Counterclaim Defendants,

v. ORDER AND OPINION ON MOTION CHRIS MCDOWELL AND CAROLINE MCDOWELL, BY DEFENDANTS CHRIS MCDOWELL AND CAROLINE Defendants/Counterclaim MCDOWELL FOR SUMMARY Plaintiffs, JUDGMENT ON THEIR DEFAMATION CLAIMS v.

MEGAN BRASSER,

Counterclaim Defendant.

1. THIS MATTER is before the Court on the 15 May 2025 filing of the Motion

by Defendants Chris McDowell and Caroline McDowell for Summary Judgment on

Their Defamation Claims (the Motion). (ECF No. 274 [Mot.].)

2. For the reasons set forth herein, the Court DENIES the Motion.

James, McElroy & Diehl, P.A., by John R. Buric and John R. Brickley, for Plaintiff rFactr, Inc.

Lincoln Derr PLLC, by Phoebe Norton Coddington and Sara R. Lincoln, for Plaintiff Greg Gentner.

Lincoln Derr PLLC, by Phoebe Norton Coddington and Sara R. Lincoln, and Clawson and Staubes, LLC, by Jeremy S. Foster, for Plaintiff/Counterclaim Defendant Richard Brasser.

Rosenwood, Rose & Litwak, PLLC, by Erik M. Rosenwood, for Defendants/Counterclaim Plaintiffs Chris McDowell and Caroline McDowell. Clawson and Staubes, LLC, by Jeremy S. Foster, for Counterclaim Defendant Megan Brasser.

Robinson, Chief Judge.

I. INTRODUCTION

3. This action arises out of the discontinuance of Plaintiff rFactr, Inc.’s

(rFactr) operations, and the related degradation of the relationship between

Counterclaim Plaintiffs Caroline McDowell (Mrs. McDowell) and Chris McDowell

(Mr. McDowell; and with Mrs. McDowell, Counterclaim Plaintiffs), on the one hand,

and Counterclaim Defendants Richard Brasser (Mr. Brasser) and Megan Brasser

(Mrs. Brasser; and with Mr. Brasser, Counterclaim Defendants), on the other.

Counterclaim Plaintiffs allege that Counterclaim Defendants made defamatory

statements about them on various online platforms.

II. FACTUAL BACKGROUND

4. The Court does not make findings of fact when ruling on a motion for

summary judgment. DSM Dyneema, LLC v. Thagard, 2019 NCBC LEXIS 44, at *2

(N.C. Super. Ct. June 19, 2019) (citing Hyde Ins. Agency, Inc. v. Dixie Leasing Corp.,

26 N.C. App. 138, 142 (1975)). Instead, to provide context for its ruling, the Court

recites those facts that it believes “are not in material dispute or those facts on which

a material dispute forecloses summary adjudication.” Ehmann v. Medflow, Inc.,

2017 NCBC LEXIS 88, at *6 (N.C. Super. Ct. Sep. 26, 2017).

A. The Parties

5. Counterclaim Plaintiffs are citizens and residents of Richmond, Virginia.

(Joint Appendix 153–54 at ¶¶ 1–2, ECF No. 280.1 [J.A.]; J.A. 219–20 at ¶¶ 1–2.) Mr. McDowell was a preferred shareholder, warrant holder, and convertible note

holder of rFactr. (J.A. 153–54 at ¶ 1; J.A. 219 at ¶ 1.)

6. Counterclaim Defendants are citizens and residents of Mecklenburg

County, North Carolina. (J.A. 154 at ¶¶ 4–5; J.A. 220 at ¶¶ 4–5; J.A. 241 at ¶¶ 4–5.)

Mr. Brasser is the former Chief Executive Officer of rFactr. (J.A. 154 at ¶ 4; J.A. 220

at ¶ 4.)

B. The Initial Action

7. In August 2018, rFactr, Mr. Brasser, and Greg Gentner 1 (Mr. Gentner)

sued Counterclaim Plaintiffs for, among other claims, defamation. (J.A. 155

at ¶¶ 10–14; J.A. 220–21 at ¶¶ 10–14; J.A. 242–43 at ¶¶ 10–14.) One basis for the

defamation claims was an alleged statement by Mrs. McDowell that rFactr’s owners

were under investigation for arson. 2 (J.A. 36–38; J.A. 155 at ¶ 14; J.A. 221 at ¶ 14;

J.A. 243 at ¶ 14; J.A. 316–20.) Mrs. McDowell purportedly made the statement

during a 2017 phone call with Jackson National Life Insurance Company (Jackson),

a company with which rFactr had been in contract negotiations at the time. (J.A. 308

at 139:3–10; J.A. 315 at 154:19–25; J.A. 316–20; J.A. 323 at 202:4–25.) After

Mrs. McDowell’s phone call, Jackson informed rFactr that it would no longer pursue

a contract with rFactr. (J.A. 15–16 at ¶¶ 20, 29–30.) rFactr later ceased operations.

(J.A. 9 at ¶¶ 80, 82; J.A. 20.) rFactr, Mr. Brasser, and Mr. Gentner alleged that

1Mr. Gentner, a non-party to the counterclaims at issue, is the former Chief Operating Officer of rFactr. (J.A. 14 at ¶ 6.)

2 Due to a lack of evidence that Mr. McDowell was involved with Mrs. McDowell’s phone call,

the Court dismissed the defamation claim against Mr. McDowell. (ECF No. 223.) rFactr’s closure arose from Mrs. McDowell’s call to Jackson. (2d Am. Compl. ¶¶ 86,

89–95, ECF No. 16; J.A. 9.)

8. On 3 June 2019, Mrs. McDowell was deposed. (J.A. 305.) She admitted

that, at some point prior to the initiation of the action, she consulted with a private

investigator about surveilling Counterclaim Defendants to “find out what was going

on, where they were, what they were doing, [and] what they had done with [investors’]

money.” (J.A. 325 at 243:12–25.) Mrs. McDowell also stated that, in the latter half

of 2017, she looked at the social media posts of one of Counterclaim Defendants’

children to determine the location of Counterclaim Defendants’ family. (J.A. 340–43

at 299:6–302:20.)

9. On 2 November 2021, Mr. Brasser was deposed. (J.A. 346.) He testified

that Mr. McDowell was compensated with rFactr stock for introducing new investors

to the company, and that he confronted Mr. McDowell for failing to disclose such

compensation to the new investors. (J.A. 347–49.)

10. On 8 February 2023, the Court entered an order staying this action because

Mr. Brasser and Mr. Gentner were criminally indicted in the United States District

Court for the Western District of North Carolina. (J.A. 132–33.)

C. Conduct During the Stay of the Action

11. In September 2023, Mr. Brasser, with the participation and knowledge of

Mrs. Brasser, created a fundraiser on a website called GiveSendGo (the Fundraiser).

(J.A. 158 at ¶¶ 31, 33, 35; J.A. 223 at ¶¶ 31, 33, 35; J.A. 247 at ¶ 33.) The Fundraiser

was titled “Brasser Family Justice.” (J.A. 158 at ¶ 32; J.A. 187–91.) The Fundraiser sought financial support for legal bills, security, and a re-opening of the investigation

into a 2016 fire at Counterclaim Defendants’ home. 3 (J.A. 187–88.)

12. In part, the Fundraiser, in the voice of Mr. Brasser, stated as follows:

It was 7 years ago tonight, just before midnight, that [Mrs. Brasser] woke me up and said, “I think our house is on fire”. We were so fortunate to all get out alive[.] . . . What I didn’t know was that our happy, simple, and naïve life was up in smoke as well.

What we couldn’t have known was that we had predators targeting us, and they were bent on ruining our lives both personally and professionally. Days after our fire, [Mrs. Brasser] was warned by one of our contractors demoing what remained of our house. He had overheard a well-to-do couple walking through our charred home, laughing and saying, “I guess the Brasser’s [sic] don’t have the perfect little life anymore.” He told [Mrs. Brasser] that we had enemies, but the thought of that was too traumatic for her to even contemplate.

Now having years of experience and evidence, it is unfortunately true. What might have started off grounded in envy, grew into a psychopathic obsession to bring me down.

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2025 NCBC 64, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rfactr-inc-v-mcdowell-ncbizct-2025.