Meyers et al. v. Certified Guaranty Company, LLC

On July 23, 2024, the Philadelphia jury returned a $10 million verdict in favor of Matthew and Emily Meyers in an eight-year-long defamation case after finding that Certified Guaranty Company had knowingly spread false information about the Meyers’ business.

Case Background

On December 13, 2016, Matt and Emily Meyers filed a suit for defamation and false light before the Philadelphia County Court of Common Pleas against Certified Guaranty Company, a leading grader in the world of comic books. Judge Abbe Fletman presided over this case. [Case number:  161201182]

Cause

Plaintiffs Matthew Meyers and Emily Meyers, principals of Investment Grade Books, LLC (IGB), filed a defamation lawsuit against Defendants. Matthew Nelson, President of Classic Collectible Services (CCS) and main grader for Certified Guaranty Company LLC (CGC), and Heritage Auctions Inc., the largest auction house for collectible comic books, were the Defendants. Heritage Auctions shared management with CGC.

IGB, founded by the Meyers, specialized in restoring high-quality classic comic books for resale, with collectors paying over a quarter of a million dollars for some restored comics. As the sole employees, the Meyers handled all aspects of restoration and sales.

CGC, the most influential grading company for collectible comic books, also operated “Collector’s Society,” a major online collector’s forum. CCS offered restoration services but did not resell comics, charging owners instead.

IGB sent its restored comics to CGC for grading. As IGB’s restorations improved, it started working on rarer comics, achieving top grades by June 2014. CCS, concerned about IGB’s rising success, engaged with the Meyers in January 2015. Nelson promised that following his advice would improve the grade of a rare comic, Batman 1. However, the grade did not change despite following his advice. Nelson also offered to press an IGB-restored Amazing Fantasy 15, claiming it would achieve a 9.6 grade. Instead, CCS damaged the book while studying IGB’s restoration techniques.

After restoring the Amazing Fantasy 15 as advised, the Meyers resubmitted it, receiving the same grade. Nelson discouraged further efforts to achieve higher grades.

In June 2015, IGB submitted Detective Comics 29, previously graded 6.5 by CGC but newly restored by CCS. CGC returned it with an absurd grade. Nelson claimed flaws in the IGB restoration, even though CCS had recently restored it to a 6.5. When the Meyers exposed this conduct, they had the book graded elsewhere, receiving a 9.0 grade.

Defendants sought to undermine IGB’s work by posting false, defamatory statements on Collector’s Society and making false accusations of using controversial techniques. These actions interfered with IGB’s business, leading Heritage Auctions to refuse IGB’s books. Defendants continued to damage IGB’s reputation at conventions and trade shows.

Damages

Due to the Defendants’ malicious, intentional, and reckless conduct, the Meyers were entitled to damages. These damages aimed to compensate for injuries to their professional and personal reputations and address the period of harm caused by CGC and CCS. The goal was to deter CGC and its personnel from similar acts in the future.

The Plaintiffs sought judgment against the Defendants for an amount significantly exceeding the jurisdictional limit. They requested both compensatory and exemplary damages, along with interest and costs.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff(s): Matt Meyers | Emily Meyers | Investment Grade Books, LLC
    • Counsel for Plaintiff(s): James E. Beasley Jr. | Lane R. Jubb Jr.
  • Defendant(s): Matthew Nelson | Certified Guaranty Company | Classic Collectible Services (CCS) | Heritage Auctions Inc.
    • Counsel for Defendant(s): Mark S. Zaid

Claims

The Plaintiffs alleged that the Defendants intentionally interfered with their prospective contractual relations and accused them of civil conspiracy. They claimed that the Defendants portrayed the Meyers in a false light by misrepresenting facts and circumstances. According to the Plaintiffs, the Defendants knowingly and maliciously spread false statements and implications, falsely claiming that the Meyers used restoration techniques that amounted to mutilating comic books and engaging in disreputable industry practices.

The Plaintiffs asserted that the Defendants were aware that their statements and implications would lead potential buyers, past buyers, auction house operators, and brokers to view the Meyers’ restored comics as damaged and devalued. They argued that this misinformation harmed the Meyers’ reputation and negatively impacted their business with CGC, the largest and most influential comic book grading company.

Defense

The Defendants denied all allegations of defamation and false light claims. They maintained that the Plaintiffs were using fraudulent means to restore their comic books.

Jury Verdict

On July 23, 2024, the Philadelphia jury returned a $10 million verdict after less than an hour of deliberation in this defamation suit. The jury found that Nelson Matthew had knowingly defamed Investment Grade Books.

Plaintiffs Matt and Emily Meyers of IGB were awarded $5 million in reputational and economic damages and $5 million in punitive damages.

Court Documents:

Complaint