Beauty Products Reseller Sues Manufacturer, Alleging False IP Complaints


Silver Deals LLC, a health and beauty product reseller, filed a complaint against Ulai Health LLC, Ulai’s manager, and Pharbest Pharmaceuticals LLC, alleging the defendants filed false intellectual property complaints with the intent to stifle competition which caused financial and defamatory harm to the plaintiff.

According to the complaint, Ulai Health is a wholesaler of Pharbest products and the plaintiff is a reseller of these products through its Amazon storefront, “VerSure.” The complaint alleges the Ulai defendants sought to increase their profits by stifling third-party sellers with false allegations of intellectual property infringement and defamatory claims; the Ulai defendants filed these complaints through the Amazon interface and signed them under penalty of perjury.

On March 10, the Ulai defendants filed a series of purportedly false complaints with Amazon alleging the plaintiff of selling counterfeit Pharbest products. On June 29, the plaintiff wrote to all the defendants, pleading for the cessation of these false complaints. Ulai defendants responded that they would retract the complaints if the plaintiffs ceased their sale of products listed by Ulai.

The complaint asserts that the defendants’ actions have caused financial and defamatory harm to the plaintiffs.

The plaintiff seeks the following for relief: an order declaring the plaintiff has not infringed on any intellectual property of the defendants, an injunction preventing the defendants from filing false complaints, and awards of damages and costs.The plaintiff is represented by Tarter, Krinsky, & Drogin LLP.