Lauth Group, Inc. v. Grasso [1]

The plaintiffs, real estate developers the Lauth Group, Inc., Lauth Indiana Resort & Casino, LLC, Robert L. Lauth, Jr. and Greg Gurnik, filed a lawsuit in 2007 over statements made in a June 2007 press release about other litigation between the Lauth developers and Merit Management Group, LP.  The press release was published in the e-newsletter INside Edge [2], which focuses on business news. In the lawsuit, the plaintiffs seek damages for defamation, conspiracy to defame, intentional infliction of emotional distress, and false light invasion of privacy.

Gary Grasso represented Merit Management in prior litigation over the existence of a joint venture agreement with the Lauth developers. After the trial judge denied Lauth's motion for summary judgment in the contract action, Grasso and Merit allegedly participated in the drafting, editing or dissemination of the press release, according to the complaint. (Compl. ¶ 13). The press release stated that "the Lauth people" cannot be trusted in their business dealings and their "deception has now been exposed and confirmed." (Compl. ¶ 13). The plaintiffs contend that the statements imputed to them professional misconduct and harmed their business reputation. (Compl. ¶¶ 23, 27). The case was initially filed in Indiana state court, but the defendants removed to federal court in 2008 on the basis of diversity jurisdiction.