Federal Trade Commission v. Lights of America, Inc.

ORDER RE MOTION TO DISMISS

Defendants Usman Vakil and Farooq Vakil (collectively, “the Vakils”) move to dismiss the Complaint of Plaintiff Federal Trade Commission (“the FTC”) pursuant to Rules 9(b) and 8(a) of the Federal Rules of Civil Procedure. The FTC opposes this motion. For the following reasons, the Court GRANTS the motion.

I. Background

The Vakils are the sole shareholders of Defendant Lights of America, Inc. (“LOA”). Usman is the President and has a fifty-one percent ownership interest in LOA. (Compl. ¶ 7.) Farooq is the Vice President and has a forty-nine percent ownership interest in LOA. (Id. ¶ 8.) The FTC contends that, at all times relevant to this action, the Vakils “formulated, directed, controlled, had authority to control, or participated in” the allegedly deceptive acts. (Id. ¶¶ 7-8.)

The FTC has filed this action against LOA and the Vakils (collectively, “Defendants”) alleging violations of sections 5(a)(1) and 13(b) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 45 (a)(1) and 53(b). (Compl. ¶ 1.) The FTC Act prohibits “unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting…