Claims Alleging Yelp Manipulated Reviews Dismissed

Allegations that Yelp Inc. manipulated user-generated reviews to induce advertising payments didn’t constitute wrongful extortion, the U.S. Court of Appeals for the Ninth Circuit held Sept. 2 (Levitt v. Yelp! Inc., 2014 BL 242408, 9th Cir., 11-17676, 9/2/14).

Judge Marsha S. Berzon wrote that the purely economic harm allegedly threatened wasn’t wrongful under the Hobbs Act, 18 U.S.C. §1951(b)(2), a federal criminal law covering extortion and robbery affecting interstate or foreign commerce.

The court also denied allegations that Yelp authored, or paid people to author, negative reviews.

Full text at http://www.bloomberglaw.com/public/document/BORIS_Y_LEVITT_on_behalf_of_himself_and_all_others_similarly_situ.