Enigma Suit Over Malwarebytes Blocking Programs Revived Again

Enigma Software Group USA LLC convinced a split Ninth Circuit to revive its claims that Malwarebytes Inc.'s anti-malware product systematically flagged its competitor’s programs as dangerous.

In the context of the computer security business, the Malwarebyte program’s assertions that Enigma’s product was “malicious,” a “threat,” or potentially unwanted software can potentially support a false advertising claim, the US Court of Appeals for the Ninth Circuit majority held on Friday. It said a lower court erred by concluding that they constituted nonactionable “opinions.”

Enigma sued Malwarebytes in 2017, alleging that starting in 2016 Malwarebytes began flagging its products and suggesting customers ...