OAKLAND, Calif. (CN) — A federal judge on Friday dismissed multiple false advertising and fraud claims against Intel Corporation from a group of consumers who say the company knowingly sold them CPUs with security vulnerabilities that could only be fixed by making the hardware up to 50% slower.
In his 16-page order, U.S. District Judge Haywood S. Gilliam Jr. tossed the plaintiffs’ claims under the California False Advertising Law, Unfair Competition Law and Consumer Legal Remedies Act, ruling they couldn’t prove that they relied on a fraudulent misrepresentation or omission by Intel when they decided to buy the products.
The judge ultimately said that the consumers failed to claim anything more than a “tenuous, speculative connection” between their purchases and the sources and marketing materials they reviewed beforehand.
“Since plaintiffs have not pled actual reliance on any misrepresentation, the court dismisses plaintiffs’ UCL, FAL, and CLRA claims brought under a fraudulent misrepresentation theory,” Gilliam wrote.
The Barack Obama appointee also ruled that the consumers didn’t adequately plead any defects the CPUs had were “central” to their function, which is a requirement for a fraudulent omission claim. Because the defect didn’t render the hardware “incapable of use,” he found the consumers fell short on their claims.
“This distinction, while subtle, is fatal to plaintiffs’ claims,” Gilliam said.
The decision was a significant blow to the consumers’ lawsuit,...
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