Facts of Case. Plaintiff Linda Rubenstein brought a putative class action in the Central District of California alleging that Neiman Marcus made allegedly false or misleading statements with regard to the pricing of its merchandise. Specifically, Plaintiff alleged violations of various California Laws and Federal Trade Commission (FTC) Guidelines based on Neiman’s use of “Compared To” on its price tags at its Last Call stores. After Plaintiff’s fourth attempt to file a sufficient complaint, the District Court dismissed Plaintiff’s case with prejudice. Judge Otero found Plaintiff had failed to both state a claim and allege fraud with particularity, as required by the Federal Rules of Civil Procedure. Plaintiff appealed to the Ninth Circuit.
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