In a putative consumer data breach class action, a court in the Northern District of California recently denied a cloud solution company’s motion to dismiss the plaintiffs’ negligence claim finding that the plaintiffs plausibly alleged that the company owed consumers a duty of care. See In re Accellion, Inc. Data Breach Litig., 2024 WL 4592367 (N.D. Cal. Oct. 28, 2024).Continue Reading California Federal Court Finds Plaintiffs Plausibly Alleged That Cloud Solution Company Owed Consumers Duty of Care

The Court of Appeal for Ontario dismissed Binance’s appeal after a lower court declined to stay a proposed class action and enforce an arbitration agreement contained in Binance’s terms and conditions. The decision carries implications for companies who do retail business or distribute products in multiple jurisdictions, including in Canada.

Background

As a Cayman Islands company, Binance Holdings Limited (“Binance”), together with associated companies, marketed and sold cryptocurrency derivative contracts to Canadian retail investors though the Binance website. In the wake of Binance’s exit from the Ontario market, in June 2022 a proposed class filed an action against Binance in the Superior Court of Justice of Ontario. The proposed class of retail investors argued that Binance distributed securities and investment contracts under Canada’s securities laws, but failed to file or deliver a prospectus required by law.Continue Reading Canadian Appellate Decision Highlights Class Action and Mass Arbitration Risks for Companies in Operating in Multiple Jurisdictions

An Illinois federal court has held that the state’s recent amendment to its Biometric Information Privacy Act (“BIPA”) capping damages to one recovery for repeated identical violations applies to cases filed prior to its enactment. Gregg v. Cent. Transp. LLC, 2024 WL 4766297, at *3 (N.D. Ill. Nov. 13, 2024).Continue Reading Illinois Federal Court Rules BIPA Single-Violation Amendment Applies Retroactively

On Wednesday, November 13, the Supreme Court heard oral argument in the case NVIDIA Corp. v. Ohman J, a class action suit filed in the Northern District of California alleging securities fraud under § 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.  Early signals from the Justices’ questions have led observers to believe that the Court may affirm the Ninth Circuit’s decision to reverse and remand the decision granting Nvidia’s motion to dismiss for failure to state a claim. Continue Reading Supreme Court Expresses Skepticism Regarding Nvidia’s Motion to Dismiss Securities Class Action

Earlier this month, the Ninth Circuit held in Sweet v. Cardona that although a third-party intervenor who wishes to object to a class settlement may have Article III standing based on an alleged reputational harm from the settlement, the intervenor nonetheless lacks standing to challenge a district court’s final approval…

Continue Reading Ninth Circuit Holds That Third-Party Intervenors Do Not Have Standing to Challenge Class Action Settlements

Massachusetts’s highest court has ruled that website operators’ use of third-party technology, including Google Analytics and Meta Pixel, to collect data on individuals’ browsing of and interactions with websites does not violate the state’s anti-wiretapping law. Vita v. New England Baptist Hospital, No. SJC-13542, 2024 WL 4558621, at *16 (Mass. Oct. 24, 2024). The court explained that those activities do not clearly amount to the person-to-person communications the 1960s-era statute is intended to cover.Continue Reading Massachusetts Supreme Judicial Court Holds That Third-Party Technologies Relating to Web Browsing Do Not Violate Massachusetts Wiretap Act

In a significant decision for businesses who are attempting to revise their consumer arbitration clauses to address the prospect of mass arbitration, the Ninth Circuit affirmed the district court’s denial of Live Nation and Ticketmaster’s motion to compel arbitration, based largely on the content of the mass arbitration provisions of their arbitration agreement.  Heckman v. Live Nation Ent., Inc., – F.4th –, 2024 WL 4586971 (9th Cir. Oct. 28, 2024).  The court concluded that the “dense, convoluted and internally contradictory” arbitration rules cross referenced in Ticketmaster’s arbitration provision, along with other elements of the provision, rendered it unenforceable.  The court also held, on an alternate basis, that the Federal Arbitration Act (FAA) did not even apply to the mass arbitration procedure at issue because it is “not arbitration as envisioned by the FAA.”Continue Reading A Closer Look: Ninth Circuit Holds Arbitration Agreement with Certain Mass Arbitration Protocols Unenforceable

In certain circumstances and states, class action waivers may mitigate the exposure risks inherent in class action lawsuits. A decision from the Eastern District of New York illustrates some of the procedural challenges defendants may face in seeking to enforce a waiver at the outset of a case in some circumstances. See Berger v. JetBlue Airways Corp., 2024 WL 4107243, at *4 (E.D.N.Y. Sept. 6, 2024).Continue Reading New York Federal Court Declines to Find Class Claims Waived at Pleadings Stage

The Third Circuit recently clarified when court-ordered discovery is necessary to determine whether a dispute should be subject to arbitration.  In Young v. Experian Information Solutions Inc., — F.3rd —, 2024 WL 4509767, at *4 (3d Cir. Oct. 17, 2024), plaintiff sued the consumer reporting agency for violations of the Fair Credit Reporting Act after Experian issued an erroneous credit report.  Experian filed a motion to compel arbitration based on a later-signed agreement that plaintiff had with an Experian affiliate.  The district court denied Experian’s motion without prejudice, and granted leave for Experian to re-file a motion to compel arbitration after the parties engaged in limited discovery on the issue of arbitrability.  Experian appealed.Continue Reading A Closer Look:  Third Circuit Clarifies When Court-Ordered Discovery Into Issues of Arbitrability Is Necessary.

The Northern District of Ohio recently granted summary judgment to Ancestry.com in a putative class action asserting that Ancestry.com violated plaintiff’s rights to publicity and privacy by using his yearbook photos in marketing materials without consent.  See Wilson v. Ancestry.com, 2024 WL 3992356 (N.D. Ohio Aug. 27, 2024).Continue Reading Ohio Federal Court Grants Summary Judgment on Right of Publicity and Invasion of Privacy Claims Involving Yearbook Photos