Lennar obtains Ninth Circuit affirmance of dismissal of nationwide class action alleging fraud and negligent misrepresentation

Client(s) Lennar Corporation

On behalf of Lennar Corporation ("Lennar"), one of the country's largest builders of new homes, Jones Day obtained a dismissal with prejudice of all claims brought by a purported class of homeowners against Lennar. The Central District of California ruled that the purported nationwide class of plaintiffs lacked standing to claim that Lennar was responsible for a decline in the value of their homes due to sales to "unqualified" purchasers. The plaintiff's counsel intended to seek hundreds of millions of dollars in damages on claims including fraud, negligent misrepresentation and breach of California's unfair competition law. Finding that the plaintiffs' standing deficiencies could not be cured, the court dismissed without leave to amend, resulting in a complete victory for Lennar. The plaintiffs appealed the District Court's decision to the Ninth Circuit who affirmed the dismissal in all respects in a 3-0 decision.

Stella Stephens, et al. v. Lennar Corp., No. EDCV 09-01688 (VAP) (C.D. Cal.); No. 10-55658 (9th Cir.)