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Home Court filings In re: Bank of America California Unemployment Benefits Litigation — S.D. Cal., No. 21-md-02992 MOTION to File Documents Under Seal — Bofa Ca Unemployment (Dkt. 470)

Court filing

MOTION to File Documents Under Seal — Bofa Ca Unemployment (Dkt. 470)

No. 3:21-md-02992-GPC-MSB · Doc. 470 · Docket on CourtListener

Summary

Bank of America, N.A.'s motion to file documents under seal in connection with its reply in support of its motion for a protective order, filed May 2, 2025 as Doc. 470 in In re: Bank of America California Unemployment Benefits Litigation, No. 3:21-md-02992-GPC-MSB, in the U.S. District Court for the Southern District of California. Under Local Civil Rule 79.2(c), the bank seeks to seal Hoyle Declaration Exhibits 18 and 19 in their entirety, portions of Exhibits 20 and 21, and references to them in its reply. It argues that good cause supports sealing, including in disputes over apex depositions of high-level executives. It describes the material as fraud prevention strategies, organizational charts for its fraud detection group and internal discussions of its state prepaid unemployment program operations. The 8-page motion is signed by Lindsay E. Hoyle.

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Case 3:21-md-02992-GPC-MSB     Document 470   Filed 05/02/25   PageID.28682   Page
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   1   JAMES W. MCGARRY (pro hac vice)
       JMcGarry@goodwinlaw.com
   2   GOODWIN PROCTER LLP
       100 Northern Avenue
   3   Boston, MA 02210
       Tel.: +1 617 570 1000
   4   Fax: +1 617 523 1231
   5   SABRINA M. ROSE-SMITH (pro hac vice)
       SRoseSmith@goodwinlaw.com
   6   MATTHEW L. RIFFEE (pro hac vice)
       MRiffee@goodwinlaw.com
   7   GOODWIN PROCTER LLP
       1900 N Street, NW
   8   Washington, DC 20036
       Tel.: +1 202 346 4000
   9   Fax: +1 202 346 4444
  10   Attorneys for Defendant
       BANK OF AMERICA, N.A.
  11

  12   [ADDITIONAL COUNSEL LISTED IN SIGNATURE BLOCK]

  13                      UNITED STATES DISTRICT COURT
  14                    SOUTHERN DISTRICT OF CALIFORNIA
  15                                SAN DIEGO DIVISION
  16   IN RE: BANK OF AMERICA                  Case No. 21-MD-02992-GPC-MSB
       CALIFORNIA UNEMPLOYMENT
  17   BENEFITS LITIGATION                     DEFENDANT’S MOTION TO
  18
                                               FILE DOCUMENTS UNDER
                                               SEAL IN REPLY IN SUPPORT OF
  19                                           MOTION FOR A PROTECTIVE
                                               ORDER
  20

  21                                           Ctrm:       2D – 2nd Floor
  22                                           Judge:      Hon. Gonzalo P. Curiel

  23

  24

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       DEFENDANT’S MOTION TO SEAL                       CASE NO. 21-MD-02992-GPC-MSB
Case 3:21-md-02992-GPC-MSB       Document 470       Filed 05/02/25   PageID.28683   Page
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   1         PLEASE TAKE NOTICE that, pursuant to Local Civil Rule 79.2(c),
   2   Defendant Bank of America, N.A. (“Defendant” or “BANA”) hereby submits this
   3   Motion to File Documents Under Seal (the “Motion”) in connection with Defendant’s
   4   Reply in Support of its Motion for a Protective Order (the “Reply”). In particular,
   5   BANA seeks to seal Hoyle Declaration Exhibits 18 and 19 in their entirety and
   6   portions of Hoyle Declaration Exhibits 20 and 21 because good cause supports
   7   sealing of the identified documents, as well as any references to those exhibits in
   8   BANA’s Reply and the Declaration of Lindsay E. Hoyle (“Hoyle Decl.”) filed in
   9   support.1 Consistent with the Court’s prior sealing orders finding good cause to seal
  10   certain exhibits filed with BANA’s Motion for Protective Order and with Plaintiffs’
  11   Opposition to Defendant’s Motion for Protective Order (“Plaintiffs’ Opposition”)
  12   (ECF 466, 467), BANA also seeks to seal references within its Reply and the Hoyle
  13   Declaration to the contents of those already-filed and sealed exhibits.2
  14         As previously stated in BANA’s motions to seal submitted in connection with
  15   class certification briefing and argument (ECF 328, 337, 344, 347, 383, 418) and
  16   BANA’s Motion for Protective Order (ECF 451), the public’s right to inspect and
  17   copy judicial records is not absolute, and a party faced with the disclosure of
  18   confidential or proprietary information may seek to file the documents under seal to
  19   avoid disclosure of business information that might result in competitive harm or be
  20   used for improper purposes. See Nixon v. Warner Commc’ns, Inc., 435 U.S. 589,
  21   598 (1978) (denying disclosure); Local Civ. R. 79.2(c). A party seeking to seal
  22   documents filed in connection with a discovery dispute must show “good cause” to
  23   seal documents. Courts in this district have held that the good cause standard applies
  24

  25
       1
         The exhibits submitted in support of BANA’s Reply in Support of its Motion for
       Protective Order are appended to the Hoyle Declaration and are referred to herein as
  26   the “Hoyle Declaration Exhibits.”
       2
         BANA incorporates by reference its Motion to File Documents Under Seal (ECF
  27   451) in connection with its Motion for a Protective Order (ECF 453) and Plaintiffs’
       Motion to File Documents Under Seal (ECF 463) in connection with Plaintiffs’
  28   Opposition to Defendant’s Motion for Protective Order (ECF 465).
                                                1
       DEFENDANT’S MOTION TO SEAL                            CASE NO. 21-MD-02992-GPC-MSB
Case 3:21-md-02992-GPC-MSB        Document 470       Filed 05/02/25   PageID.28684     Page
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   1   even where the underlying dispute concerns so-called “apex” depositions of high-
   2   level executives, as is the case here. See, e.g., BAE Sys. San Diego Ship Repair Inc.
   3   v. United States, 670 F. Supp. 3d 1064, 1069 (S.D. Cal. 2023) (hereinafter “BAE
   4   Systems”) (finding “good cause” to seal exhibits filed with motion for protective
   5   order).
   6         Courts consistently seal documents where—as here—disclosure of the
   7   confidential business information risks competitive harm to the litigant or improper
   8   use of the information such as to commit fraud. E.g., E.W. Bank v. Shanker, 2021
   9   WL 3112452, at *18–19 (N.D. Cal. July 22, 2021) (finding compelling reasons to
  10   seal confidential onboarding processes, verification of customer identities, and fraud
  11   prevention measures); Soria v. U.S. Bank N.A., 2019 WL 8167925, at *4 (C.D. Cal.
  12   Apr. 25, 2019) (finding compelling reasons to seal internal fraud investigation
  13   procedures because there was a “significant danger that someone could improperly
  14   use this information to commit fraud and avoid detection.”). Indeed, this Court
  15   largely granted the Parties’ prior motions to seal, finding good cause or compelling
  16   reasons to seal documents concerning the same topics that BANA now seeks to seal,
  17   including BANA’s fraud detection and prevention policies and strategies (including
  18   the fraud filter), organizational charts, and discussions or analyses of its state prepaid
  19   unemployment program operations, including call center operations, prepaid fraud
  20   losses, and cardholder complaints and escalations, among other topics. See ECF 266,
  21   293, 365, 381, 390, 391, 397, 421, 466, 467 (the “Sealing Orders”).
  22         Consistent with this Court’s Sealing Orders, there is good cause to seal the
  23   confidential documents and testimony at issue here (or references thereto), as well as
  24   substantive discussions of already sealed exhibits filed in connection with BANA’s
  25   Motion for Protective Order or Plaintiffs’ Opposition, because each reflects topics
  26   that are likely to cause particularized competitive harm to BANA and which could
  27   potentially enable future fraud, and thus pose a danger to BANA’s business and the
  28   public. See, e.g., EWB, 2021 WL 3112452, at *18–19 (finding compelling reasons
                                                 2
       DEFENDANT’S MOTION TO SEAL                             CASE NO. 21-MD-02992-GPC-MSB
Case 3:21-md-02992-GPC-MSB        Document 470       Filed 05/02/25   PageID.28685   Page
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   1   to seal where public disclosure of EWB’s confidential onboarding processes,
   2   verification of customer identities and fraud prevention measures would “harm [the
   3   bank’s] competitive standing”); Soria, 2019 WL 8167925, at *4 (finding compelling
   4   reasons to seal bank’s internal procedures for investigating fraud because there was
   5   a “significant danger that someone could improperly use this information to commit
   6   fraud and avoid detection”).      Each document was also properly designated as
   7   “Confidential” or “Highly Confidential – Attorneys’ Eyes Only” under the Protective
   8   Order entered by this Court. See BAE Systems, 670 F. Supp. 3d at 1069 (finding good
   9   cause to seal certain exhibits filed in connection with an apex discovery dispute
  10   because “information in the exhibits fits within ‘confidential information’ in the
  11   protective order”).
  12         Specifically, the Confidential documents and testimony that BANA seeks to
  13   seal include, but are not limited to, the following categories of documents and
  14   information:
  15            • Hoyle Declaration Exhibits 20 and 21 reflect discussions of confidential
  16                  BANA fraud prevention strategies and policies that could be misused
  17                  by fraudsters to perpetrate future fraud or could be used by another
  18                  financial institution to BANA’s competitive disadvantage.             See
  19                  Amended Sealing Order (ECF 365) at 5–6, 12; Robart Decl. (ECF 347-
  20                  2) ¶¶ 3–5; Martin Decl. (ECF 347-1) ¶¶ 4–6; see also Cowan v. GE Cap.
  21                  Retail Bank, 2015 WL 1324848, at *2–3 (N.D. Cal. Mar. 24, 2015)
  22                  (compelling reasons exist to seal bank’s internal procedures for
  23                  investigating fraud and addressing cardholder fraud notifications);
  24            • Hoyle Declaration Exhibit 19 reflects excerpts of BANA’s
  25                  organizational charts and shows how BANA structures the group
  26                  responsible for fraud detection and monitoring strategies, among other
  27                  banking responsibilities. See Amended Sealing Order (ECF 365) at 13-
  28                  14; Robart Decl. (ECF 344-2) ¶ 5; Dkt. No. 344-1, Martin Decl. ¶ 9; see
                                                 3
       DEFENDANT’S MOTION TO SEAL                             CASE NO. 21-MD-02992-GPC-MSB
Case 3:21-md-02992-GPC-MSB      Document 470       Filed 05/02/25   PageID.28686    Page
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   1                also EWB, 2021 WL 3112452, at *18-19 (sealing confidential
   2                onboarding processes, digital banking platform, fraud management
   3                techniques, and verification of customer identities); and
   4            • Hoyle Declaration Exhibits 20 and 21 reflect BANA’s confidential
   5                discussions or analyses of its state prepaid unemployment program
   6                operations, including but not limited to, fraud volume, claims and call
   7                center operations, operational risks and losses, and approval of fraud
   8                strategies. See Amended Sealing Order (ECF 365) at 10–13, n. 14;
   9                Martin Decl. (ECF 344-1) ¶¶ 5, 7–10; Martin Decl. (ECF 347-1) ¶¶ 10–
  10                12; Robart Decl. (ECF 344-2) ¶ 4; see Brady v. Grendene USA, Inc.,
  11                2015 WL 6828400, at *3 (S.D. Cal. Nov. 6, 2015) (J. Curiel) (sealing
  12                confidential business information that might harm the litigants’
  13                competitive standing including profit and loss data and contractual
  14                agreements).
  15         BANA has also provisionally redacted and sealed portions of the Reply and
  16   Hoyle Declaration that quote, describe or reflect privilege log descriptions of the
  17   confidential documents, testimony and topics identified above, or those previously
  18   submitted or described in the Parties’ prior briefing and motions to seal submitted in
  19   connection with BANA’s Motion for Protective Order (ECF 451, 453, 463, 465).
  20   Those confidential topics include BANA’s fraud and claims analyses and strategies
  21   and BANA’s analyses of its state prepaid unemployment program operations,
  22   including contractual negotiations, fraud volume, claims and call center operations,
  23   cardholder complaints, operational risks and losses, and approval of fraud strategies,
  24   among other topics. This is consistent with the terms of the Stipulated Protective
  25   Order (ECF 82, § 3), with this Court’s prior Sealing Orders (ECF 365, 381, 390, 466,
  26   467), and with rulings in this Circuit. See, e.g., Darisse v. Nest Labs, Inc., 2016 WL
  27   11474174, at *2 (N.D. Cal. June 2, 2016) (sealing class certification motion and
  28   declarations that quote or reference confidential exhibits). For the reasons discussed
                                               4
       DEFENDANT’S MOTION TO SEAL                           CASE NO. 21-MD-02992-GPC-MSB
Case 3:21-md-02992-GPC-MSB      Document 470       Filed 05/02/25   PageID.28687   Page
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   1   above, there is good cause to seal discussions of those topics, testimony and
   2   documents discussed in the Parties’ briefing. See supra at 3-4.
   3                                      *        *    *
   4         For the foregoing reasons and for the reasons set forth in the Court’s Sealing
   5   Orders in connection with class certification briefing and argument (ECF 365, 381,
   6   390, 391, 397, 421) and BANA’s Motion for Protective Order (ECF 466, 467),
   7   Plaintiffs’ Motions to Seal (ECF Nos. 376, 384, 394, 463), BANA’s prior Motions
   8   to Seal (ECF Nos. 328, 337, 344, 347, 383, 418, 451) and accompanying declarations
   9   submitted in support thereof (ECF Nos. 344-1, 344-2, 344-3, 347-1, 347-2), all of
  10   which are incorporated herein by reference, BANA respectfully requests that the
  11   Court grant Defendant’s Motion to Seal Documents Filed In Support of its Reply in
  12   Support of its Motion for Protective Order because good cause supports sealing
  13   thereof.
  14
       Dated: May 2, 2025               Respectfully submitted,
  15
                                         By: s/ Lindsay E. Hoyle_________________
  16
                                              LINDSAY E. HOYLE (pro hac vice)
  17                                          LHoyle@goodwinlaw.com
                                              VALERIE A. HAGGANS (pro hac vice)
  18                                          VHaggans@goodwinlaw.com
                                              GOODWIN PROCTER LLP
  19                                          620 Eighth Avenue
                                              New York, NY 10018
  20                                          Tel: +1 212 813-8800
                                              Fax: +1 212 355-3333
  21
                                              SABRINA M. ROSE-SMITH (pro hac vice)
  22                                          SRoseSmith@goodwinlaw.com
                                              MATTHEW L. RIFFEE (pro hac vice)
  23                                          MRiffee@goodwinlaw.com
                                              GOODWIN PROCTER LLP
  24                                          1900 N St. NW
                                              Washington, DC 20036
  25                                          Tel: +1 202 346 4000
                                              Fax: +1 202 346 4444
  26
                                              JAMES W. MCGARRY (pro hac vice)
  27                                          JMcGarry@goodwinlaw.com
                                              GOODWIN PROCTER LLP
  28                                          100 Northern Avenue
                                               5
       DEFENDANT’S MOTION TO SEAL                           CASE NO. 21-MD-02992-GPC-MSB
Case 3:21-md-02992-GPC-MSB     Document 470       Filed 05/02/25   PageID.28688   Page
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   1                                      Boston, MA 02210
                                          Tel.: +1 617 570 1000
   2                                      Fax: +1 617 523 1231
   3                                      LAURA G. BRYS (SBN 242100)
                                          LBrys@goodwinlaw.com
   4                                      GOODWIN PROCTER LLP
                                          601 S Figueroa St., Suite 4100
   5                                      Los Angeles, CA 90017
                                          Tel.: +1 213 426 2500
   6                                      Fax: +1 617 346 4444
   7
                                          YVONNE W. CHAN (pro hac vice)
   8                                      YChan@jonesday.com
                                          JONES DAY
   9                                      100 High Street
                                          Boston, MA 02110
  10                                      Tel.: +1 617 960 3939
                                          Fax: +1 617 449 6999
  11
                                          JANICE P. BROWN (SBN 114433)
  12                                      jbrown@myersnave.com
                                          MATTHEW B. NAZARETH (SBN
  13                                      278405)
                                          mnazareth@myersnave.com
  14                                      MEYERS NAVE
                                          600 B Street, Suite 1650
  15                                      San Diego, CA 92101
  16                                      Attorneys for Defendant
                                          BANK OF AMERICA, N.A.
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       DEFENDANT’S MOTION TO SEAL                          CASE NO. 21-MD-02992-GPC-MSB
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   1                            CERTIFICATE OF SERVICE
   2         I hereby certify that I electronically filed the foregoing with the clerk of the
   3   court for the United States District Court for the Southern District of California by
   4   using the CM/ECF system on May 2, 2025. I further certify that all participants in
   5   the case are registered CM/ECF users and that service will be accomplished by the
   6   CM/ECF system. I certify under penalty of perjury that the foregoing is true and
   7   correct.
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  10    Executed:   May 2, 2025                      s/ Lindsay E. Hoyle
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       DEFENDANT’S MOTION TO SEAL                           CASE NO. 21-MD-02992-GPC-MSB


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