Montway LLC v. Nexus AT LLC, et al., No. 25 C 13100, consolidated with SGT Auto Transport Corp. v. Nexus AT LLC, No. 26 C 1056, (N.D. Ill. June 2, 2026) (Kennelly, J.).
Judge Kennelly denied in part and granted in part defendants’ Fed. R. Civ. P. 12(b)(6) motions to dismiss in these two related lawsuits alleging a novel theory of Lanham Act liability: a “toxic backlink” SEO sabotage campaign. Plaintiffs Montway and SGT, competing auto-transport brokers with federally registered marks, alleged that defendant Nexus AT LLC (at the direction of its CEO Gokhan “George” Arkin) created toxic backlinks pointing to plaintiffs’ websites using misleading anchor text associated with unsavory content, including online casinos, steroids, payday loans, and CBD products, thereby confusing Google’s algorithm and falsely implying association between plaintiffs and those disreputable sites.
Of particular interest, the Court held:
- False Advertising — Literal Falsity: The anchor text is literally false because it purports to lead to plaintiffs’ sites or services but actually redirects elsewhere. No separate showing of actual deception is required where the representation is literally false. The Court found the backlink scheme functions like negative advertising and is covered by the Lanham Act despite being a nontraditional advertising medium. The Court applied the Seventh Circuit’s rejection of a rigid four-factor “commercial advertising or promotion” test.
- Trademark Infringement: Plaintiffs adequately pled likelihood of confusion. The backlinks and anchor text used plaintiffs’ actual marks (“Montway,” “sgtautotransport”), creating the impression of affiliation with untrustworthy spam sites. The Court noted that likelihood of confusion is a fact question generally unsuited to resolution at the Rule 12 stage, and rejected Nexus’s “sophisticated consumer” argument as a matter for discovery.
- Dilution by Tarnishment: The marks were plausibly alleged as “famous” given long continuous use (Montway since 2007, SGT since 2014) and significant marketing expenditures. Connecting the marks to sexual and illegal-activity-adjacent sites plausibly states a claim for tarnishment under 15 U.S.C. § 1125(c).
- California UCL Claims Dismissed: The California Unfair Competition Law does not apply extraterritorially. Plaintiffs’ theory that they were injured in California because Google is headquartered there was rejected. Any injury was suffered where consumers searched and were redirected, not at Google’s headquarters.
- Individual Liability: The claim against Arkin individually survived under 805 ILCS 180/10-10(a-5). Montway alleged Arkin personally decided to launch the campaign and directed another individual to execute it, which suffices without needing to pierce the corporate veil. A manager is personally liable for his own wrongful acts even when acting on the LLC’s behalf.

