Defendants file motion to dismiss lawsuit over bidding scandal.
The lawsuit seeking class action status was filed by Stewart Resmer, who overpaid for a SnapNames auction by $20 in 2006 due to the insider bidding.
In its motion to dismiss (pdf), Oversee.net and SnapNames argue:
-Resmer doesn’t have any standing to name Oversee.net on any claims because Oversee.net did not acquire SnapNames until after auction in which Resmer participated.
-Plaintiff fails to state a claim under the California Auction Act because the act refers to in-person auctions, not online auctions. Oversee points to a case against eBay in which a court dismissed the case.
-There was no fiduciary duty between Oversee/SnapNames and the Resmer
-There’s no claim of fraudulent concealment because there was no fiduciary responsibility, and therefore no duty to disclose
-The defendants didn’t violate the California Business & Professions Code because, in order to violate this, the defendants would have had to violate the California Auction Act or commit statutory fraudulent concealment, which it argues it did not.
The motion to dismiss asks for a hearing date of March 15, 2010.