Sharon Mahn v. Allegis Group, Inc., et al.

CourtDistrict Court, S.D. New York
DecidedDecember 22, 2025
Docket1:24-cv-08326
StatusUnknown

This text of Sharon Mahn v. Allegis Group, Inc., et al. (Sharon Mahn v. Allegis Group, Inc., et al.) 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
Sharon Mahn v. Allegis Group, Inc., et al., (S.D.N.Y. 2025).

Opinion

DOCUMENT ELECTRONICALLY FILED UNITED STATES DISTRICT COURT DOC #: _________________ SOUTHERN DISTRICT OF NEW YORK DATE FILED: 12/22/2025 ----------------------------------------------------------------- X : SHARON MAHN, : : Plaintiff, : 1:24-cv-8326-GHW : -against- : : MEMORANDUM ALLEGIS GROUP, INC., et al., : OPINION & ORDER : Defendants. : : ----------------------------------------------------------------- X GREGORY H. WOODS, United States District Judge: I. INTRODUCTION This action is the latest in a fifteen-year-long series of disputes between Plaintiff Sharon Mahn and Defendants Major, Lindsey, & Africa LLC (“MLA”) and Allegis Group, Inc. (“Allegis,” and together with MLA, “Defendants”). Plaintiff worked for MLA, a subsidiary of Allegis, as a legal recruiter until 2009, when MLA terminated her for allegedly misappropriating confidential information about MLA’s clients and selling that information to its competitors. Plaintiff and MLA disputed the termination in various forums for the next nine years—culminating finally in a multi- million-dollar judgment against Plaintiff for misappropriation of MLA’s confidential information and trade secrets. For the next four years, the parties engaged in post-judgment-enforcement proceedings in New York state court. During those proceedings, Plaintiff petitioned for Chapter 7 bankruptcy. One year later, Plaintiff’s bankruptcy trustee sued MLA and several of its employees in New York state court for an alleged sexual assault that occurred when Plaintiff was still working at MLA. MLA moved to compel the arbitration of those claims. That motion was granted and affirmed on appeal. And MLA filed an action in bankruptcy court to prevent the discharge of Plaintiff’s debt to MLA in bankruptcy under the original judgment against Plaintiff for her misappropriation of MLA’s trade secrets. The bankruptcy court granted MLA’s motion for summary judgment in part. Plaintiff has since appealed that decision, and that appeal remains pending. Plaintiff subsequently initiated this action, asserting various tort claims against Defendants arising from Defendants’ alleged “lawfare” and “weaponiz[ation] of the legal system itself,” which allegedly occurred throughout the parties’ various disputes. Defendants then moved to dismiss

these claims under Fed. R. Civ. P. 12(b)(6). On May 24, 2025, the Court granted Defendants’ motion to dismiss in its entirety—dismissing Plaintiff’s defamation claims with prejudice and granting Plaintiff limited leave to amend her claims for abuse-of-process, negligent infliction of emotion distress (“NIED”), and intentional infliction of emotional distress (“IIED”). Following the Court’s decision, Plaintiff filed a second amended complaint (“SAC”), which Defendants have again moved to dismiss under Fed. R. Civ. P. 12(b)(6). Plaintiff’s SAC spans 71 pages and includes 491 paragraphs. Yet, despite the length of Plaintiff’s SAC, Plaintiff has failed to marshal any new facts sufficient to support her claims. Because Plaintiff’s SAC fails to allege any new facts or make any new arguments that cure the deficiencies already identified by the Court in its May 24, 2025 opinion, Plaintiff’s SAC fails to state a claim for abuse-of-process, NIED, or for IIED, and Defendants’ motion to dismiss is GRANTED. II. BACKGROUND1 A. Factual Background At the outset, the Court notes that Plaintiff’s SAC, Dkt. No. 45 (“SAC”), gives her first amended complaint a “face-lift”—the factual allegations in Plaintiff’s SAC with respect to her three remaining tort claims for abuse-of-process, IIED, and NIED, are, aside from some minor cosmetic alterations, substantively identical to the factual allegations in her first amended complaint. See

generally Dkt. No. 24 (“FAC”). Plaintiff’s SAC omits some of the underlying litigation history and party information contained in her initial complaint—the omitted information is general background information that, while it would be helpful to the reader in framing Plaintiff’s claims, ultimately does not support any of her claims. Because Plaintiff’s SAC alleges facts that are substantially identical to those alleged in her FAC, familiarity with the facts of this case is presumed.2 For context, the reader is referred to the Court’s May 24, 2025 opinion, Dkt. No. 44 (“Op.” or “Opinion”), which outlines the history of this dispute. Given the substantial similarity between the FAC and the SAC, only a brief summary of the factual allegations in Plaintiff’s SAC and this case’s procedural history is provided here. B. Procedural History Plaintiff initiated this action on November 1, 2024. Dkt. No. 1. Plaintiff filed an amended complaint pursuant to Fed. R. Civ. P. 15(a)(1) on January 10, 2025. See generally FAC. In her FAC,

1 Generally, the facts are drawn from Plaintiff’s Second Amended Complaint, Dkt. No. 45 (“SAC”), and are accepted as true for the purposes of this motion. See, e.g., Town of Babylon v. Fed. Hous. Fin. Agency, 699 F.3d 221, 227 (2d Cir. 2012). However, “[t]he tenet that a court must accept as true all of the allegations contained in a complaint is inapplicable to legal conclusions.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009).

In addition to drawing facts from the SAC, the Court has drawn facts from public filings in the various other courts where the parties have litigated against each other, “not for the truth of the matters asserted in the other litigation[s], but rather to establish the fact of such litigation[s] and related filings.” Fecteau v. City of Mount Vernon, No. 23-cv-9173 (KMK) (JCM), 2025 WL 754043, at *8 (S.D.N.Y. Mar. 10, 2025) (quotation omitted); accord Glob. Network Commc’ns, Inc. v. City of New York, 458 F.3d 150, 157 (2d Cir. 2006). 2 In deciding Defendants’ motion to dismiss, the Court relies solely on the factual allegations in the SAC. However, the Court has included in this opinion some of the factual allegations from Plaintiff’s FACs solely to provide context for the reader. Plaintiff alleged six causes of action: three for defamation; one for abuse-of-process based on Defendants’ alleged “lawfare” during the various disputes between Plaintiff and MLA since her termination, Op. at 9 (citing FAC ¶¶ 398–426); one for NIED arising from Defendants’ alleged “lawfare” and defamatory statements, id. (citing FAC ¶¶ 44, 427–35); and one for IIED arising from Defendants’ alleged “lawfare” and defamatory statements, id. (citing FAC ¶¶ 44, 436–42). On January 27, 2025, Defendants moved to dismiss Plaintiff’s claims pursuant to Fed. R. Civ. P.

12(b)(6). Dkt. No. 31; Dkt. No. 32; Dkt. No. 33. On March 13, 2025, Plaintiff filed an opposition to Defendants’ motion to dismiss. Dkt. No. 40. Defendants replied on March 27, 2025. Dkt. No. 41; Dkt. No. 42. On May 24, 2025, the Court granted Defendants’ motion to dismiss in its entirety. See generally Op. The Court dismissed Plaintiff’s defamation claims with prejudice, concluding that “[a]ny amendment of Plaintiff’s claims for defamation would be futile” because Defendants’ alleged statements were “either substantially true, privileged from suit, or both.” Id. at 2, 35. The Court dismissed Plaintiff’s abuse-of-process claim without prejudice because Defendants only issued lawful writs for legitimate purposes. Id. And the Court dismissed Plaintiff’s NIED and IIED claims without prejudice because those claims were predicated on the same non-actionable conduct as her other causes of action.3 Id. at 32.

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Bluebook (online)
Sharon Mahn v. Allegis Group, Inc., et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/sharon-mahn-v-allegis-group-inc-et-al-nysd-2025.