Judge Overseeing $550M Facebook 'Tag Suggestions' Settlement Wants Details on Individual Payouts
Judge James Donato said at a hearing Thursday that he wants a clear explanation of why the proposed deal would pay less than the $1,000 statutory damages for negligent violations set by the Illinois Legislature in the Biometric Information Privacy Act. "The phrase litigation risk is not sufficient," he said. "Every case has litigation risk."
February 06, 2020 at 03:13 PM
4 minute read
SAN FRANCISCO — The judge overseeing a proposed $550 million settlement that Facebook Inc. reached to settle claims that its "tag suggestions" feature violated an Illinois biometric privacy law has asked lawyers in the case to provide detailed explanations of why the deal would pay class members less than statutory damages amounts.
U.S. District Judge James Donato of the Northern District of California noted at a case management conference Thursday that the Illinois Legislature set statutory damages at $1,000 for negligent violations of the state's Biometric Information Privacy Act and $5,000 for intentional or reckless violations. Plaintiffs sued in 2015, claiming that the social media platform's "tag suggestions" feature, which prompts users to identify "friends" in photographs posted to the site, violated BIPA.
Donato said this case was "very different" than other consumer cases since there was "a clear mandate from the Illinois legislature that these violations had a price tag."
Donato also said that he wanted the settlement papers set to be filed on March 12 to explain what benchmark amount the parties had set for damages and the reason for any discount from that statutory amount.
"The phrase litigation risk is not sufficient," Donato said. "Every case has litigation risk."
Donato further noted that all his "key interpretations" in the case had been backed up by both the Illinois Supreme Court and the federal appellate courts. In January 2019, the Illinois Supreme Court in a case involving Six Flags agreed with a prior ruling from Donato in the Facebook case which found that plaintiffs don't need to allege any harm beyond a statutory violation to sue under BIPA.
The U.S. Court of Appeals for the Ninth Circuit in August upheld Donato's decision granting class certification in the case, finding that BIPA protected "the right not to be subject to the collection and use" of biometric identifiers such as face templates and that "these statutory requirements would necessarily violate the plaintiffs' substantive privacy interests." The U.S. Supreme Court last month declined to take up Facebook's appeal of the case.
Donato said Thursday that the parties have a "lot more information" than just his interpretations of the Illinois law.
"Just saying trials are risky is not going to fly with me," he said.
Donato also said that he wanted the parties to explain how Facebook has agreed to change its practices as part of the settlement. He said that's "particularly important" in cases where a company can afford to pay large fees that the company detail how it has changed its ways.
"I want to see something that says this is not going to happen again," Donato said.
Michael Rhodes of Cooley, who represented Facebook at the hearing, said that the March 12 deadline for filing settlement papers might be "aggressive" but that the parties could file a report saying what the holdups are if the deadline needs to be pushed back.
Shawn Williams of Robbins Geller Rudman & Dowd, who represented the plaintiffs at the hearing, said that he would be open to moving back the deadline by a week or two, but that he was hopeful that the parties would meet the self-imposed deadline.
Donato, for his part, told the parties that if they delay too long, he'll "most certainly set a trial date."
"This is already a 2015 case that has had a number of off-ramps and on-ramps," the judge said.
Read more:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllIn Lawsuit, Ex-Google Employee Says Company’s Layoffs Targeted Parents and Others on Leave
6 minute readPre-Internet High Court Ruling Hobbling Efforts to Keep Tech Giants from Using Below-Cost Pricing to Bury Rivals
6 minute readWill Khan Resign? FTC Chair Isn't Saying Whether She'll Stick Around After Giving Up Gavel
Law Firms Mentioned
Trending Stories
- 1Call for Nominations: Elite Trial Lawyers 2025
- 2Senate Judiciary Dems Release Report on Supreme Court Ethics
- 3Senate Confirms Last 2 of Biden's California Judicial Nominees
- 4Morrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
- 5Tom Girardi to Surrender to Federal Authorities on Jan. 7
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250