Angry About a Business Review? This Court Ruling Sheds Light on When to Sue
A key question before the justices: Had the defendant ranked vendors based on the amount of consulting services they'd purchased?
January 27, 2020 at 01:00 AM
3 minute read
The original version of this story was published on Connecticut Law Tribune
It's one thing to be angry over an unflattering business review, but quite another to prevail in litigation over it—barring specific circumstances.
That's what plaintiff NetScout Systems Inc. learned when it sued research and advisory company Gartner Inc. in Connecticut over a market research report that ranked NetScout as a "challenger"—as opposed to a "leader"—among vendors that monitor and diagnose network performance.
The case turned on whether Gartner's reports were false, defamatory and part of a pay-to-play scheme, as NetScout had argued, or whether constitutional issues were at play, with Gartner claiming its ranking was non-actionable opinion, protected under the First Amendment.
Gartner rates vendors, including those that purchase its services. It had extended an invitation for NetScout to participate in its evaluation—an invitation the plaintiff had accepted, but NetScout said it never purchased Gartner's services. That detail factored into the lawsuit, because it suggested favorable treatment for those who had.
NetScout sought to recover damages, alleging defamation and violation of the Connecticut Unfair Trade Practices Act.
In evaluating the claims, the high court considered the context of the 2014 Gartner ranking at the center of the suit. That report laid out vendors' "relative strengths and weaknesses," according to the Connecticut Supreme Court ruling.
"Whether expressed using colorful jargon, numerical or letter grades, stars, or the standard terminology of 'good, better, best,' such ratings appear virtually any place a potential customer might look—in magazines and newsletters, television advertisements, billboards, waiting rooms, websites, and every other conceivable physical or electronic surface," the opinion noted.
But a key question before the justices: Had Gartner ranked vendors based on the amount of consulting services they'd purchased? NetScout claimed the consultant had given "coded" messages indicating as much, but the high court found insufficient evidence for a claim under Connecticut's Unfair Trade Practices Act.
The justices also agreed with Gartner: Its ranking constituted protected speech.
"Different claims in a different context brought by a differently situated plaintiff may fare differently," according to a footnote in the ruling, which cited Abu Dhabi Commercial Bank v. Morgan Stanley—a case that turned on proof that the reviewer had a financial stake and conflict of interest.
The litigation caught the attention of business ethics scholars, the Reporters Committee for Freedom of the Press and the Connecticut Business and Industry Association, which all applied to file amicus briefs.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
- 1DC Bar’s Proposed Anti-Discrimination, Harassment Conduct Rule Sees More Pushback
- 2California's Chief Justice Starts Third Year With Questions About Fires, Trump and AI
- 3Justin Baldoni Sues Blake Lively and Ryan Reynolds for $400M in New Step in 'It Ends With Us' Fight
- 4Top Leadership Changes Coming for NJ Attorney General's Office
- 5SCOTUSBlog Co-Founder Tom Goldstein Misused Law Firm Funds, According to Federal Indictment
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250