Opinion ID: 3160389
Heading Depth: 4
Heading Rank: 1

Heading: False or misleading statements of fact

Text: In the context of the allegations throughout the complaint that Strunk-Zwick did not own Tri-Serve, had no authority to transfer its clients, and then allowed its entire client base to be subsumed into Sheakley, the e-mails and mailings from Strunk-Zwick to customers contain several false and misleading statements of fact concerning Tri-Serve’s product, PEO services. The July 3, 2009 e-mail and mailing to customers stated that “we are partnering with Sheakley HR,” and that Tri-Serve was “moving into Sheakley Group” because of “tremendous growth over the last 6 months.” It also gave a future address of “TriServe LTD c/o Sheakley HR Solutions.” Plaintiffs specifically assert that the references to “partnering” and the “move” are false: Tri-Serve was not moving and the companies had no relationship whatsoever. The supposed address of “TriServe LTD c/o Sheakley HR Solutions” at One Sheakley Way was also a false representation of the geographic origin of the PEO services and could also have created a further misimpression as to the relationship between the companies.