Credit: Devon Yu/Adobe Stock Federal Judge Allows Defamation Suits to Proceed Against Competitors' False Warnings of 'Serious State Investigation'
"Viewing the allegations in the light most favorable to the plaintiff, the plain language of the challenged statement—that Grover is 'under a serious state investigation'—is verifiable, even if confirming the existence of an investigation may require significant legwork. Either an investigation by the state exists, or it does not," U.S. District Chief Judge Michael F. Urbanski for the Western District of Virginia said. "The context of the message is important, as it both (1) supports Grover's contention that a reasonable recipient would understand the challenged statement as stating a fact, and (2) reinforces the implication that Grover has engaged in illegal conduct related to charitable gaming."
January 04, 2024 at 06:36 PM
5 minute read
A Virginia federal judge allowed two identical defamation suits filed by electronic pull tabs provider Grover Gaming to move forward against its competitor's employees, who allegedly made false statements about Grover's business operations being under "serious state investigation."
Grover, which is licensed to manufacture and supply games by the Virginia Department of Agriculture and Consumer Services' Office of Charitable and Regulatory Programs, filed similar lawsuits against two employees of its competitor, Powerhouse Gaming Inc., alleging that the employees made comments that Grover operated its business illegally, shorted players and charities, and was under investigation by Virginia.
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