A Privacy Violation Is a Concrete Injury, Ninth Circuit Underlines in Facebook Settlement Over Private Message Probes
Alan Butler, general counsel for the Electronic Privacy Information Center, said the appeals court order continues "a string of good decisions on standing to enforce privacy statutes."
March 03, 2020 at 05:24 PM
4 minute read
An appeals court affirmed approval of a settlement over Facebook's scanning of private messages while also pushing back against the social media giant's assertions that the class lacks standing.
The U.S. Court of Appeals for the Ninth Circuit found that users, who claimed Facebook probed their private messages to catalog URLs shared within the chats, got a fair shake in the 2017 no-cash deal, and rejected the objections of Anna St. John and her colleagues at the Center for Class Action Fairness that users received only "worthless injunctive relief." With damages claims already booted from the case at the time of the settlement, the panel noted that the class only had injunctive or declaratory avenues for relief.
"Here, the class did not need to receive much for the settlement to be fair because the class gave up very little," wrote Judge Michelle Friedland, on behalf of Judges John Clifford Wallace and Richard Clifton. "The district court did not err to the extent it concluded that class members' claims were weak enough that the class was fairly likely to end up receiving nothing at all had this litigation proceeded further."
Yet, the court clarified that Facebook's actions constituted a concrete injury under the Electronic Communications Privacy Act and the California Invasion of Privacy Act. In its appellate supplemental brief, Facebook argued the plaintiffs lacked standing because they "suffered no concrete harm from the 'use of anonymized and aggregated data from website links,'" according to the opinion. But the judges ruled Facebook's standing argument is besides the point.
"Plaintiffs alleged, and Facebook has confirmed (through, among other things, its revised Data Policy), that Facebook identifies and collects the contents of users' individual private messages," Friedland wrote. "Plaintiffs' position that this was being done without consent meant that they claimed a violation of the concrete privacy interests that ECPA and CIPA protect, regardless of how the collected data was later used. No more is needed to support standing under Spokeo."
Facebook's attorneys at Gibson, Dunn & Crutcher did not respond to a request for comment Tuesday afternoon.
The court also noted that the Illinois biometrics privacy case Patel v. Facebook and several other cases have identified statutory provisions that protect consumers' concrete privacy interests.
"We respect the legislatures' judgment about the importance of the privacy interests violated when communications are intercepted, as reflected in their decisions to enact a private right of action that is available when these provisions are infringed," Friedland wrote.
Alan Butler, general counsel for the Electronic Privacy Information Center, which submitted an amicus brief in the case, said that the Ninth Circuit continued a trend of courts affirming consumers have standing to sue over privacy violations. "I think the Ninth Circuit's decision on standing is really good and encouraging for consumers," Butler said.
The Center for Class Action Fairness' Ted Frank and Adam Schulman backed St. John's objection.
Frank said in an email that the insubstantial injunctive relief, red flags and self-dealing recognized by the court in the opinion "is exactly the sort of settlement the Ninth Circuit has previously recognized as impermissible to approve, even when attorneys were making much less than the millions they took here to waive the class claims." He said his team is evaluating their options.
Plaintiffs attorneys from Lieff Cabraser Heimann & Bernstein and Carney Bates & Pulliam in Little Rock, Arkansas, did not return a request for comment.
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 AllAI Adoption, Data Center Building Boom Opening More Doors for Cybercriminals, Many of Them Teenagers
So You Want to Be a Tech Lawyer? Consider Product Counseling
New Class Action Points to Fears Over Privacy, Abortions and Fertility
How Qualcomm’s General Counsel Is Championing Diversity in Innovation
6 minute readLaw Firms Mentioned
Trending Stories
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