Phoenix Trading, Inc. v. Loops LLC

This defamation action arises out of a business dispute between companies that design and distribute hygiene products for prisoners. One of those companies, Loops, designed a flexible toothbrush made for safe use in prisons and then bid on a contract with the New York City Department of Corrections (“NYC-DOC”). The other company, Amercare, ultimately won the contract using a similar toothbrush. In a series of letters to government officials and to the press, Loops then alleged that Amercare had engaged in procurement fraud because, among other things, Amercare had counterfeited Loops products. Based on those statements, Amercare filed this defamation action in Washington state court. The action was removed to the Western District of Washington, and the district court granted Loops’ motion to strike the complaint under Washington’s anti-SLAPP statute. This appeal followed. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.

I.

Plaintiffs-Appellants are Phoenix Trading, Inc., dba Amercare Products, Inc., and Wendy Hemming (together “Amer-care”). Amercare imports and distributes toiletries and health products, and it often contracts with correctional institutions.…