Phone Reseller Files Motion to Dismiss 4 Counts of Xfinity Mobile Fraud Complaint

Defendant GlobalguruTech (GGT) moved the court to dismiss four counts of Xfinity Mobile’s amended fraud complaint against the cellphone reseller for failing to “cure the deficiencies previously identified,” said its Friday motion (docket 2:22-cv-01950) in U.S. District Court for Arizona in Phoenix. In June, the court granted in part GGT's motion to dismiss and dismissed, without prejudice, counts four, 10, 11 and 12, it noted. Plaintiffs filed an amended complaint July 7, reasserting the counts “with very few changes,” said the motion. Xfinity Mobile et al.’s November complaint alleges defendants SellLocked.com, its affiliate Guru Holdings, and their owner, Jakob Zahara, together with their co-conspirators, are handset traffickers who exploit XM’s financial incentives to acquire phones using unlawful methods to circumvent the policies and procedures put in place to protect Xfinity and its legitimate customers, then resell the phones for a substantial profit. Plaintiffs’ civil conspiracy claim fails because the amended complaint contains insufficient facts to support a conspiracy; Zahara and his LLCs are still the only named defendants, “and Mr. Zahara cannot have a conspiracy with himself,” the motion said. Trademark infringement claims fail because GGT’s use of the Xfinity logo “still falls within the parameters of nominative fair use,” it said.