The Jury unanimously ruled that the following statements made by Adblade were both defamatory of Broadspring and that Adblade was unable to prove that the statements were substantially true:
- A false statement in a November 15, 2012 email to StarPulse that “we cannot rotate with How Life Works as they sell advertisements for Belly Fat, Acai Berry, Belly Fat and other advertisers whose sole revenue model is continuity programs which re-bill your audiences credit cards. Because How Life Works copies our exact ad format consumers who get ripped off confuse Adblade with them this has cost Adblade real damages in terms of legal fees, admin and time in court.”
The truth How Life Works, a Broadspring property, never ran any acai berry advertisers, never copied Adblade’s ad formats, and Adblade never incurred any damages as a result.
- A false statement in the “review” that “Sanford Wallace, their founder, known as ‘Spamford Wallace’ was banned from online activity for 5 years.”
The truth Sanford Wallace was never a founder of Broadspring or any company whose assets Broadspring purchased.
- A false statement in the ‘review” that “Mindset was eventually shut down by the FTC in 2005.”
The truth Mindset was never shut down by the FTC.
- A false statement — after Broadspring filed suit — in a March 22, 2013 email to Tech Media Network that “They only have a handful of advertisers and most of those are offers are continuity products which have a high degree of customer complaints and this creates headaches for us. We have been in court because customers confuse the ad unit they responded to after being scammed. This has created a lot of admin, cost and headache for us.”
The truth At this time this false statement was made, Broadspring and Adblade shared a large number of advertisers. Adblade executives were unable to identify a single instance in which consumers were confused or complained of being scammed by Broadspring ads.
- A false statement — after Broadspring filed suit — in an April 10, 2013 email to Journal Register Company that “Broadspring starts atrisic, a convicted ringtone scam company.”
The truth Broadspring did not start Atrinsic, and Atrinsic is not a “convicted ringtone scammer”.
- A false statement — after Broadspring filed suit — in an April 10, 2013 email to Journal Register Company that “The company has a known history of distributing spyware and ringtone scams. Now they are in the scam offer business copying our ad units.”
The truth Broadspring never distributed spyware, was never involved in ringtone scams, does not run scam offers and did not copy Adblade’s units.
- A false statement in a blog comment — after Broadspring filed suit — that “When they were named in a lawsuit by the FTC they dropped that name.”
The truth Broadspring was not named in a lawsuit by the FTC or anyone else.
- A false statement — after Broadspring filed suit — in an April 18, 2013 email to KSL/Deseret News that “So you know, the folks at Broadspring shut down their company (mindset interactive) soon after they were named by the FTC in a lawsuit for distributing spyware.”
The truth Broadspring was not named in a lawsuit by the FTC or anyone else and never distributed spyware.
- A false statement — after Broadspring filed suit — in an April 18, 2013 email to KSL/Deseret News that “Broadspring began copying Adblade ad formats about 2 years ago. This has caused lots of problems and administrative costs. We just don’t want an Adblade units running on the same website as a Broadspring unit. It costs us more to prove to angry customers and lawyers that it wasn’t our ad.”
The truth Broadspring did not copy Adblade’s format. In addition, Adblade could not identify a single instance where they had to prove to angry customers and lawyers that it wasn’t their ad.
- A false statement — after Broadspring filed suit — in an April 18, 2013 email to KSL/Deseret News that “New Motion then shut down after they had to settle a class action for scamming 6 million people with Ringtone scams.”
The truth: New Motion did not shut down as a result of any class action and never scammed anyone.