Facebook’s Claim of Fraudulent Scheme Is Sufficient

Facebook sufficiently pleaded claims under the CAN-SPAM Act, Computer Fraud and Abuse Act, and common law fraud against a company that hooks Facebook® users with offers of a free prize and redirects them to third-party sites, the U.S. District Court for the Northern District of California decides.

Facebook sued Maxbounty, Inc., an “advertising and marketing company” that uses Facebook pages to drive traffic to its customers’ websites, for common law fraud and violating federal computer fraud statutes. The district court denied Maxbounty’s motion to dismiss Facebook’s claims; it held that Facebook alleged Maxbounty’s intent to defraud with sufficient particularity to ...