U.S. judge dismissed a lawsuit brought by the founder of WallStreetBets, the community that played a role in popularizing "meme" stocks, against Reddit. Jaime Rogozinski had accused Reddit of unjustly banning him from moderating the community and infringing on his trademark rights.
Jaime Rogozinski, who established WallStreetBets in 2012, claimed that Reddit removed him in April 2020 as a means to prevent him from controlling a "famous brand that helped Reddit rise to a $10 billion valuation" by late 2021.
Rogozinski had filed a trademark application for "WallStreetBets" in March 2020, when the community had reached 1 million subscribers. It currently boasts 14 million subscribers.
In a 15-page ruling, U.S. District Judge Maxine Chesney in San Francisco dismissed Rogozinski's assertion that he owned the WallStreetBets trademark due to his association with the market and the fame he brought to the brand.
Furthermore, Judge Chesney dismissed Rogozinski's claims under state law regarding his removal, stating that they were either preempted by a federal law granting "broad immunity" to websites primarily publishing external content, or that he lacked the standing to sue.
Chesney did mention that Rogozinski could attempt to amend his complaint.
In response to the ruling, James Lawrence, Rogozinski's attorney, stated in an email that while they were disappointed, Rogozinski remained confident and committed to upholding his rights. Reddit declined to comment on the matter.
Reddit had previously characterized Rogozinski's lawsuit as an "obvious attempt to enrich himself" and explained that its involvement aimed to prevent consumer confusion, protect goodwill, and allow the members of the r/WallStreetBets subreddit to decide who should lead it.
Jaime Rogozinski had sought a minimum of $1 million in damages.
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