Permanent Injunction

To succeed in a claim for injurious falsehood, the plaintiff must establish several elements:

False Statement - The defendant must have made a statement about the plaintiff’s business, products, or property that is objectively false. The statement cannot merely be an opinion; it must be a factual assertion that can be proven false.

Publication of the Statement - The false statement must have been communicated to a third party, whether through spoken words, written publications, or online postings, where it could reach potential customers or stakeholders.

Malicious Intent or Recklessness - The plaintiff must demonstrate that the defendant acted with malice (intentionally harmful intent) or with reckless disregard for the truth. This means the defendant either knew the statement was false or made it without proper investigation.

Financial Loss - Unlike defamation, injurious falsehood requires the plaintiff to show specific financial damage, such as lost sales, contracts, or other measurable economic harm directly resulting from the false statement.

Injurious falsehood claims are often relevant in business and commercial disputes where one party’s statements harm another’s economic interests. Common scenarios include:

Product Disparagement - When one business falsely claims that a competitor’s product is defective, unsafe, or inferior, resulting in lost sales for the competitor, this can give rise to an injurious falsehood claim.

Property Disparagement - If a party makes false statements about the ownership, value, or condition of another’s property, leading to financial harm, it may constitute injurious falsehood.

False Claims of Intellectual Property Infringement - False accusations of trademark or patent infringement intended to harm a competitor’s reputation can be actionable as injurious falsehood if they result in financial loss.

Damage to Business Reputation - Maliciously spreading false information about a company’s business practices or financial health can lead to an injurious falsehood claim if it causes customers to turn away or if the business suffers economic harm.

Injurious falsehood claims involve specific legal challenges, particularly concerning evidence of intent and economic loss. Key legal considerations include:

Proof of Malice or Recklessness - The plaintiff must demonstrate that the defendant acted with malicious intent or recklessness. This often requires showing that the defendant’s primary goal was to cause harm or that they ignored obvious facts that would have disproven the statement.

Quantifying Financial Loss - The plaintiff must provide evidence of specific financial damages caused by the falsehood. This can involve tracking lost sales, lost business opportunities, or diminished value, which may require detailed financial analysis.

Distinction from Defamation - Injurious falsehood differs from defamation in that it requires proof of actual financial loss and focuses on economic harm rather than damage to personal reputation. Plaintiffs must choose the appropriate claim based on their type of harm.

Defenses Against Injurious Falsehood - Defendants can argue that the statement was true, that it was a fair opinion (if clearly identified as such), or that the plaintiff failed to prove malicious intent or recklessness. Truth is a complete defense to injurious falsehood.

Potential for Multiple Claims - Injurious falsehood claims may be accompanied by other claims, such as defamation or tortious interference, allowing the plaintiff to pursue additional remedies if the falsehood led to broader reputational or business harm.

Injurious falsehood claims require a strong legal foundation to prove or defend against economic harm from false statements. At ME Law, we offer tailored solutions to help you pursue justice in cases involving business disparagement or to defend your rights effectively. Contact us today to discuss your needs and protect your interests in complex injurious falsehood matters.