Facts

Lennar Corp., a homebuilder company, sold homes nationwide.

PLAINTIFFS' CONTENTIONS:
The homeowners filed a class action against Lennar alleging that Lennar's practice of selling homes to high foreclosure risk, unqualified buyers while marketing the communities as 'stable' and 'traditional' defrauded qualified homeowners into over-paying for their homes.

DEFENDANTS' CONTENTIONS:
Lennar contended that the purported reduction in property value was not an injury-in-fact because the homeowners had not sold their homes and that the homeowners failed to allege traceability since any decline in home values resulted from economic conditions not attributable to Lennar.

Result

The court dismissed the claims with prejudice for lack of standing, finding that plaintiffs failed to plead injury-in-fact and causation.

Other Information

The case is on appeal to the Ninth Circuit.