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Consumer Law
Consumers Legal Remedies Act
Unfair Competition, False Advertising

Monica Rael, on behalf of herself and all others similarly situated v. The Children's Place Inc., a Delaware corporation; and Does 1 to 50, inclusive

Published: Jan. 19, 2018 | Result Date: Nov. 22, 2017 | Filing Date: Feb. 11, 2016 |

Case number: 3:16-cv-00370-GPC-JMA Settlement –  $6,800,000

Judge

Gonzalo P. Curiel

Mediator

Edward A. Infante

Court

USDC Southern District of California


Attorneys

Plaintiff

Todd D. Carpenter
(Lynch Carpenter LLP)

Gary F. Lynch
(Carlson, Lynch, Sweet, Kilpela & Carpenter LLP)

Edwin J. Kilpela Jr.
(Carlson Lynch)


Defendant

Michelle C. Doolin
(Cooley LLP)

Darcie A. Tilly
(Cooley LLP)


Facts

Monica Rael represented a class of consumers, filed suit against The Children's Place, a kids clothing retailer.

Contentions

PLAINTIFF'S CONTENTIONS: Rael and the class contended that Children's Place used deceptive "marked down" or "on sale" labels as a marketing ploy to dupe customers into thinking they were receiving a good deal of items, when in fact the items were never sold at the purported original higher price.

Plaintiffs asserted causes of action for violating California's Unfair Competition Law, False Advertising Law and Consumer Legal Remedies Act by misleading customers with labels falsely describing items as discounted.

DEFENDANT'S CONTENTIONS: The Children's Place denied any wrongdoing

Result

The parties reached a $6.8 million settlement after two full day mediation sessions.


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