FTC Voluntarily Dismisses Baseless Suit

On Friday, August 7, 2020, the Federal Trade Commission (“FTC”) used a procedural mechanism typically reserved for baseless lawsuits to voluntarily dismiss an action the FTC had brought against Traffic Jam Events, LLC and David J. Jeansonne, II (“Traffic Jam” and “Jeansonne”). This action was in response to Traffic jam and Jeansonne’s success in roundly defeating the FTC’s requested temporary and preliminary injunctive relief, which the Court heard on June 25, 2020, and denied in a written opinion issued on June 26, 2020. In that opinion, the Court made numerous citations to the lack of evidence presented by the FTC to support its claims. 

Following this victory, Traffic Jam and Jeansonne moved to dismiss the case in its entirety, arguing that the FTC had failed to state a legal cause of action against Traffic Jam and Jeansonne. That motion was set to be heard by the Judge on August 11. In the late hours of Friday afternoon, the FTC, after initially opposing the motion to dismiss, filed a voluntary dismissal of the entire action. Traffic Jam and Jeansonne have successfully fought – and will continue to do so – against the FTC’s baseless charges that they violated federal or state law, and will continue to protect the name and reputation of both Traffic Jam and Mr. Jeansonne.

Legal scholars have criticized the availability of this procedural loophole, which allows a litigant to file a baseless claim, risk-free, and then avoid the imposition of costs or other mechanisms to compensate the defendant for having to defend against a baseless suit. Tax-paying citizens waste their money on this meritless suit. Traffic Jam and Jeansonne also expended significant fees to defeat and dismiss a lawsuit that should have never been brought in the first place.

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