Klarquist Client ETAP Wins $8.42 Million Jury Verdict For Competitor’s False Advertising

Published June 22, 2016

In a significant Lanham Act false advertising verdict, a jury in the Central District of California found CYME (a division of Eaton Corporation, represented by Jones Day) liable for making false claims about the performance of ETAP’s software. The jury awarded Klarquist’s client, ETAP, $8.42 million in damages, and found that CYME willfully engaged in false advertising.

After a five-day jury trial before Judge Selna, on June 21, 2016, the jury deliberated for under four hours and found CYME liable for false advertising under Section 43(a) of the Lanham Act and that CYME acted willfully.

ETAP has been the victim of a three-year, worldwide smear campaign that started in June 2013. The campaign consisted of YouTube videos and emails distributed throughout the power system software industry. ETAP filed suit in June 2014, won summary judgment in March 2016 that the accused statements were literally false, and got a verdict that CYME is directly liable and responsible for the actions of its Middle East representative.

The Klarquist team was led by Kristin Cleveland, Salumeh Loesch, Klaus Hamm, and John Vandenberg.