Court Dismisses Claim Based on Injury to Reputation Where There Were No Non-Conclusory Damages Allegations

On March 16, 2026, Justice Crane of the New York County Commercial Division issued a decision in GRIT BXNG at Home, Inc. v. SweatWorks LLC, 2026 NY Slip Op. 31011(U), dismissing a claim based on injury to reputation where there were no non-conclusory damages allegations, explaining:

Here, even assuming the challenged content on SweatWorks LLC’s website was deceptive, GRIT BXNG fails to adequately allege that it suffered any injury as a result of SweatWorks’ allegedly misleading conduct. The complaint includes only the bare allegation that GRIT BXNG suffered damages to its reputation as a result of the misleading content on the website. It lacks any factual specificity, however, as to why GRIT BXNG’S reputation or revenue would be impacted, no less negatively impacted, by the allegedly misleading information on the website. Indeed, neither the complaint nor the submissions offered in opposition to the motion allege how the misrepresentations denigrate GRIT BXNG or otherwise depict it in a negative light.

It is assumed, of course, that GRIT BXNG’s factual allegations are true, both in the complaint and in opposition to the motion. However, conclusory allegations will not serve to defeat a motion to dismiss. Thus, based on the circumstances and arguments presented on this motion, the first and second causes of action in the complaint are dismissed.

(Internal quotations and citations omitted)..

Stay Informed

Get email updates anytime we publish to one or all of our blogs.

Stay informed!
Sign up for email alerts and notifications here.
Read more about our Complex Commercial Litigation practice.