In Distefano v. Bank of America, N.A., the U.S. District Court for the District of Massachusetts dismissed Chapter 93A claims arising from allegedly unauthorized transfers through the money-transfer application Zelle. The court determined that plaintiffs failed to plead actionable deception and did not satisfy the heightened pleading requirements of Federal Rule of Civil Procedure 9(b) applicable to fraud-based claims.
Plaintiffs alleged that approximately $48,000 was transferred from their bank account without authorization through Zelle. After reporting the transactions, plaintiffs alleged the bank initially informed them the transfers were unauthorized but later sent a letter stating that the withdrawals appeared to have been properly authenticated. Following receipt of a Chapter 93A demand letter, the bank refunded the disputed funds but declined to provide additional relief. Plaintiffs subsequently filed suit on behalf of themselves and a putative class asserting, among other claims, violations of Chapter 93A.
Plaintiffs advanced two theories of liability. First, they alleged defendants misrepresented that Zelle was a safe platform for transferring money. Second, they alleged defendants falsely represented that the disputed transfers were authorized.
As a threshold matter, the court explained that Chapter 93A claims premised on allegations of intentional or malicious false statements are treated as fraud-based claims and must satisfy Rule 9(b)’s heightened pleading...
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