Lawsuit Against USGBC Dismissed
08.17.11 6:54 PMA class action lawsuit for $100 million dollars against the U.S. Green Building Council has been dismissed. The plaintiffs, professionals in the environmental engineering and design industry, brought claims based on the alleged false advertising of the USGBC, effectively asserting that USGBC was falsely claiming that the buildings it certifies through its Leadership in Energy and Environmental Design (LEED) system are energy efficient.
On August 15, the judge dismissed the lawsuit. Federal law claims were dismissed with prejudice on the grounds that (1) that the named plaintiffs and USGBC were not competitors for purposes of the strong categorical test under the Lanham Act, which is a federal law prohibiting false representation of goods or services in commerce; and (2) that despite being professionals and consultants in a related industry, the plaintiffs could not show either a likely injury or a causal nexus to any false advertising. State law claims for false advertising and deceptive trade practices were also dismissed but without prejudice.
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