Also known as: disparagement · false suggestion of connection · falsely suggest a connection · Lanham Act 2(a) · 15 U.S.C. § 1052(a)
Written by attorneys · grounded in primary & secondary sources — see below
The rule limiting recovery for injurious falsehood to pecuniary loss that results directly and immediately from the effect of the publication on third persons, including impairment of vendibility or value caused by disparagement, plus expenses reasonably incurred to counteract the publication.
Select any source to read its text and confirm it supports the definition.
Damian Decker operates Duffy Construction. A competitor sends letters to insurers claiming Decker falsifies bids to overcharge clients. The insurers restrict coverage after reading the letters as accusations of fraud. Decker proves the resulting drop in contract awards constitutes direct pecuniary loss from the disparagement.
Dolores Diaz runs Delta Dynamics. A rival publishes statements falsely linking Diaz to a disfavored political group. The court issues an injunction directing the rival to cease the false suggestions without listing every possible future statement. The order leaves details of compliance to the rival while holding it responsible for results.
The plaintiff must show that recipients took the communication in its injurious, disparaging sense rather than as a mere call for investigation.
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The plaintiff must prove falsity of the statement and that the publication caused actual pecuniary loss to a legally protected economic interest.
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