WINSTON-SALEM, N.C.–Truist, the new name for a mega-bank formed by a merger that is being sued by Truliant FCU over its new name, said the credit union’s brand by itself “does not have commercial strength” and is “just one mark in a crowded field.”
The bank made the statement in its response to the lawsuit filed by the $2.8-billion Truliant FCU, which filed suit in mid-2019 alleging the name chosen the financial institution created by the merger of BB&T and SunTrust would cause confusion in its markets. The merged bank is headquartered in Charlotte, N.C, not far from where Truliant is headquartered and in a market where it has looked to build a presence.
According to the Winston-Salem Journal, establishing the Truist Financial Corp. name and brand has cost about $125 million to date. The number was included in the latest defense brief in the trademark-infringement lawsuit.
Pulling No Punches
“Truliant has narrowed the focus of its pull-no-punches complaint to the usage of the ‘Tru’ prefix in the Carolinas and Virginia marketplaces that it shares with the nation’s sixth-largest bank,” reported the Journal. “Truliant declined to comment Friday on the Truist brief, saying it needed time to review it.”
The report added Truliant wants any Truist-branded products to be destroyed, noting Truliant also wants to be awarded any profits made via the Truist brand as compensatory monetary damages and is requesting punitive damages.
Truist is seeking to have the federal court to dismiss the Truliant complaint with prejudice, meaning it can’t be re-filed, and to deny Truliant’s motion for a preliminary injunction.
CU Can’t ‘Meet Burden’
The bank further stated, “To replace Truist with a new name would require a shareholder vote and regulatory approvals, take six-nine months, and cost another $34 million,” the bank said. “After informing clients and the public that BB&T and SunTrust are ‘now Truist,’ switching would undermine those relationships.”
Truist further said in its response Truliant “cannot meet its burden of showing a clear likelihood of success because, in plaintiff’s own words to the U.S. Patent and Trademark Office, TRU- is diluted by thousands of co-existing marks, and confusion is unlikely.”
Truist said there are more than 7,460 federal registrations existing for “Tru-” marks, including more than 500 in financial and related services, including TruPoint Bank, which serves Asheville, N.C., and Virginia. TruPoint Bank serves Asheville and mostly Virginia.
CU Cites ‘Irreparable Harm’
“Plaintiff is aware of (but has not taken action against) TruPoint of Asheville, which had until recently a loan production office in Winston-Salem. Plaintiff has over 500 customers in the counties where TruPoint has branches,” the bank stated, according to the Winston-Salem Journal.
As CUToday.info reported earlier, Truliant has stated a preliminary injunction is timely and necessary to stop further confusion before the Truist signs, logo and color appear at branches in the three states.
“No harm to defendants would outweigh that irreparable harm to Truliant,” the credit union said.