California Supreme Court Rules on Unfair Competition Law

Latham & Watkins LLP

The decision provides organizational plaintiffs, including nonprofits and trade associations, with a basis to establish standing to bring UCL claims.

In July 2023 the California Supreme Court expanded the ability of organizations to sue under California’s unfair competition law (UCL). In California Medical Association v. Aetna Health of California Inc., the Court held that if an organization such as a trade association incurs costs while responding to a perceived fraudulent, unlawful, or unfair trade practice that threatens its bona fide, pre-existing mission, it has standing to sue so long as those costs were not incurred in connection with litigation of the organization’s UCL claims.

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