Complaint alleges ‘injurious falsehood’

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted October 23, 2020 11:22 AM

Relying on Section 623A of the Restatement (Second) of Torts, a group of trusts that own billions of dollars of student loans sued a service provider, Transworld Systems Inc., in Delaware for “injurious falsehood” based on allegedly spurious statements made by TSI when trying to collect on thousands of delinquent debts. Section 623A says “one who publishes a false statement harmful to the interests of another is subject to liability for pecuniary loss resulting to the other if (a) he intends for publication of the …

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