Court Dismisses Putative Class Action For “Fraud” in Store Checkout Fundraising
Donor claimed fraud for saying all gifts would go to charity when store had agreed it would make up deficit in campaign
A federal District Court in Brooklyn has dismissed a putative class action claiming “fraud” in a CVS drug store fundraising campaign in which patrons were offered the opportunity to contribute to the American Diabetes Association at the checkout register. It rejected the plaintiff’s claim that the failure of CVS to tell customers that it would make up the difference if the campaign fell short of its $10 million goal constituted a fraud on the public. CVS and the ADA had entered into a “Corporate Sponsorship Agreement” in April 2021 in which CVS agreed to “offer opportunities to its customers to make a donation to the ADA” through a nation-wide “in-store fundraising campaign.” It agreed to...
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