Firm Obtains Dismissal With Prejudice of Class-Action Claims Against a Trading Card Company

The Firm represents The Topps Company, Inc. (“Topps”), a subsidiary of Fanatics Holdings, Inc., against purported class action claims asserted against it in the United States District Court for the Southern District of New York. The plaintiff alleged that Topps’ use of “redemption cards” – which are unique cards in specific packs of Topps trading cards that provide a consumer with a chance for a high-value or special card – constituted an illegal lottery, and that the packaging for the trading cards was misleading by not adequately disclosing that no purchase was necessary to obtain a chance to win a special card. The plaintiff asserted claims, on behalf of a purported class, for violation of New York’s General Business Law (“NY GBL”); violation of the unfair business practices statutes of certain other states; breach of express warranty; breach of the implied warranty of merchantability; breach of the Magnuson-Moss Warranty Act (“MMWA”); fraud; unjust enrichment; and negligent misrepresentation.

On January 25, 2023, the Court granted Topps’ motion to dismiss the Amended Complaint in its entirety, with prejudice, for substantially the reasons asserted in the Firm’s motion papers. The Firm had argued, among other things, that plaintiff did not allege a sufficient nexus to New York for her NY GBL claims, that she failed to provide pre-suit notice for her warranty claims, that she did not properly allege a breach of state law sufficient to sustain her MMWA claims, that she did not plead fraud with sufficient particularity and that her unjust enrichment claims were duplicative of her other claims.

A copy of the Court’s decision is available here.