Becker Obtains Affirmation of Dismissal for Client at 8th Circuit Court of Appeals

Becker Obtains Affirmation of Dismissal for Client at 8th Circuit Court of Appeals

Becker Managing Shareholder Gary Rosen, with Yasin Daneshfar and Kevin Markow, won a dismissal for his client Durst Image Technology, a global manufacturer of digital printing systems, which was affirmed by the 8th Circuit Court of Appeals today.

The case has a significant impact with respect to fraud claims and how to properly plead them in federal court.

By way of background, Ambassador Press, Inc., a commercial printing company, purchased a printing press from Durst and four years later, sued Durst for fraud, alleging that the press did not have the speed or durability Durst represented at the time of purchase.

In affirming the District Court’s dismissal, the 8th Circuit Court of Appeals noted that Ambassador and Durst were both sophisticated commercial entities; Ambassador made an independent factual investigation about the quality of the press before buying; and that Ambassador therefore cannot assert, with only conclusory allegations, that it reasonably relied on any alleged misrepresentations.

This case stands for the continued reinforcement of the federal court’s reinforcement to require a plaintiff to plead fraud claims with plausibility and specificity and under Minnesota law, a plaintiff must assert fraud claims that allege detrimental reliance with plausibility and specificity.