Internet Law Firm Secures Another Victory in Spam Lawsuit

On March 19, 2009 the Honorable Maxine Chesney of the Northern District of California dismissed a spam lawsuit filed by Hypertouch, Inc. against Azoogle.com and several other Defendants. Azoogle was represented by Kronenberger Rosenfeld. The lawsuit had alleged that Azoogle had sent or advertised in hundreds of thousands of emails that violated the California spam law, located at Business & Professions Code section 17529.5. The Court threw out the plaintiff's complaint, finding that the plaintiff had alleged fraudulent conduct, but had failed to plead such conduct with the specificity required by Federal Rule 9(b). The Court also dismissed the plaintiff’s claim to the extent it had been brought after the expiration of the statute of limitations. Deciding a question of first impression, the court found that under California Code of Civil Procedure 340(a), a one year statute of limitations applied to claims brought under section 17529.5 where the claims seek statutory damages, because such damages act as a penalty.

Hypertouch, Inc. v. Azoogle.com, Inc. et al., Case No. 08-4970 (N.D. Cal.) [D.E. No. 99]