"Fraud" is a legal term, and "intentionally misleading people" is the very definition of Fraud. https://www.law.cornell.edu/wex/fraud

In fact, it seems like Fraud is still Fraud at the reckless or negligent levels. No intent needed (though I'm sure proving it at the "intent" level will get them more of a case).

So... is this Fraud? Well, yes. It would be. But the next step is for these plaintiffs to prove the fraud in court. It seems like they have a strong argument though.