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JOINT CASE MANAGEMENT STATEMENT filed by Cat Brooks, Rasheed Shabazz.… — Brooks v. Thomson Reuters Corporation (Dkt. 51)

No. 3:21-cv-01418-EMC · Doc. 51 · Docket on CourtListener

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           Case 3:21-cv-01418-EMC             Document 51   Filed 08/10/21   Page 1 of 14




 1   Eric H. Gibbs (SBN 178658)
     Andre M. Mura (SBN 298541)
 2   Amanda M. Karl (SBN 301088)
     Jeffrey B. Kosbie (SBN 305424)
 3
     GIBBS LAW GROUP LLP
 4   505 14th Street, Suite 1110
     Oakland, California 94612
 5   Telephone: (510) 350-9700
     Facsimile: (510) 350-9701
 6   ehg@classlawgroup.com
     amm@classlawgroup.com
 7
     amk@classlawgroup.com
 8   jbk@classlawgroup.com

 9   Attorneys for Plaintiffs and the Proposed Class
10   [Additional counsel on signature page]
11

12                           UNITED STATES DISTRICT COURT FOR THE

13                               NORTHERN DISTRICT OF CALIFORNIA
                                         SAN FRANCISCO DIVISION
14

15   CAT BROOKS and RASHEED SHABAZZ,                   Case No. 3:21-cv-1418-EMC
     individually and on behalf of all others
16   similarly situated,                               JOINT CASE MANAGEMENT
17                                                     CONFERENCE STATEMENT
                           Plaintiffs,
18          v.                                         Judge: Hon. Edward M. Chen
                                                       Date: August 17, 2021
19   THOMSON REUTERS CORPORATION,                      Time: 9:30 a.m.
                                                       Courtroom: 5
20                  Defendant.
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                        JOINT CASE MANAGEMENT CONFERENCE STATEMENT
                                    Case No. 3:21-cv-1418-EMC
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 1          The parties submit this joint statement in advance of the case management conference scheduled

 2   for August 17, 2021 pursuant to Federal Rule of Civil Procedure 26(f), Civil Local Rule 16-9, the

 3   Standing Order for All Judges of the Northern District of California, this Court’s Standing Order for All

 4   Civil Cases, and this Court’s March 18, 2021 Order. See ECF No. 26.

 5      1. Jurisdiction and Service

 6          This Court has jurisdiction under the Class Action Fairness Act of 2005, specifically 28 U.S.C.

 7   § 1332(d). See ECF No. 1 (Notice of Removal). There are no issues regarding personal jurisdiction or

 8   venue. All parties have been served.

 9      2. Facts

10              a. Plaintiffs’ Statement

11          Thomson Reuters procures detailed personal information on millions of California residents

12   from a vast array of sources, uses that information to create dossiers about these individuals, and sells

13   these dossiers to customers. All of these actions are performed without the individuals’ knowledge or

14   consent. Thomson Reuters purports that its dossiers define the individual for customers wanting this

15   information.

16          Plaintiff Cat Brooks is a civil rights activist who has been targeted by white supremacists, so she

17   tries to ensure that her personal information is not available for the public. Nonetheless, Thomson

18   Reuters sells its customers a detailed dossier on Ms. Brooks and her family. Similarly, Plaintiff

19   Rasheed Shabazz is also a civil rights activist who fears retaliation because of his work. Thomson

20   Reuters sells Mr. Shabazz’s information without his consent, including his address, phone number, and

21   partial social security number. Thomson Reuters even sells inaccurate information about him,

22   including that he is divorced when he is married, and that he has been sued for failing to pay child

23   support when he has not.

24          Based upon Thomson Reuters’ sale and collection of data through the CLEAR platform,

25   Plaintiffs seek to certify a class of California residents who claim that Thomson Reuters violates

26   California law by profiting from the non-consensual sale of personal identifying information and data.

27   Plaintiffs seek both monetary compensation to remedy these violations, as well as injunctive relief in a

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                         JOINT CASE MANAGEMENT CONFERENCE STATEMENT
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 1   representative capacity to enjoin Thomson Reuters’ continued violation of California’s Unfair

 2   Competition Law.

 3               b. Thomson Reuters’ Statement

 4          Thomson Reuters is a leading provider of worldwide news and business information services,

 5   delivering highly specialized information-enabled software and tools for legal, tax, accounting, and

 6   compliance professionals. This case targets “CLEAR,” an online search platform that helps streamline

 7   investigative research by collecting and organizing information from third party sources. The content

 8   made available through CLEAR is not created by Thomson Reuters; rather, it is obtained from other

 9   sources, such as public records, government sources, and the Internet. Thomson Reuters offers

10   credentialed, authorized customers subscription plans that allow them to use CLEAR for lawful

11   purposes, including to prevent money laundering, to verify and “know your vendor,” to facilitate

12   commercial lending, to prevent healthcare and insurance fraud, to find absent parents, and to protect

13   victims of human trafficking and sexual exploitation.

14          Plaintiffs do not allege that any Thomson Reuters obtained information unlawfully or that any

15   customer used CLEAR in an unlawful or unauthorized manner; rather, Plaintiffs target Thomson

16   Reuters for including their information in CLEAR without paying them or seeking their advance

17   consent.

18      3. Legal Issues

19          a.      Plaintiffs’ Statement: The legal issues include, but are not limited to, the following:

20          •    Whether Thomson Reuters’ collection and sale of personal data through the CLEAR

21               platform violates California’s common law right of publicity.

22          •    Whether Thomson Reuters’ collection and sale of personal data through the CLEAR

23               platform violates California’s Unfair Competition Law, Cal. Bus. & Prof. § 17200, et seq.

24          •    Whether Thomson Reuters has a process for obtaining consent before collecting,

25               aggregating, and selling individuals’ personal data in the CLEAR database.

26          •    Whether Thomson Reuters’ sale of personal data through the CLEAR platform constitutes a

27               misappropriation for commercial advantage under California law.

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 1          •    Whether class members’ names, photographs, and other identifying information are directly

 2               connected to the commercial purpose of selling access to that information.

 3          •    The extent to which Thomson Reuters has profited from the non-consensual sale of personal

 4               identifying information and data.

 5          •    Whether this case is suitable for class treatment under Federal Rule of Civil Procedure 23.

 6          b.       Defendants’ Statement: The legal issues include the following, many of which are

 7   discussed in Thomson Reuters’ pending Motion to Dismiss and Motion to Strike (ECF No. 28) and

 8   Reply in support thereof (ECF No. 35):

 9          •    Whether California’s common law or statutory rights of publicity cover conduct that does

10               not involve any use of Plaintiffs’ images, names, or likenesses to draw attention in order to

11               secure a future advantage;

12          •    Whether California’s common law or statutory rights of publicity are so broad as to prohibit

13               a company from charging a fee to provide factual information about another.

14          •    Whether California’s statutory right of publicity under California Civil Code Section 3344

15               requires a plaintiff to establish all elements of California’s common law Right of Publicity

16               (among others).

17          •    Whether Thomson Reuters’ actions are neither an “unlawful” nor an “unfair” practice under

18               California Unfair Competition Law, Cal. Bus. & Prof. Code § 17200, et seq.

19          •    Whether Plaintiffs’ claim for unjust enrichment should be dismissed because it is not a valid

20               claim under California law.

21          •    Whether Plaintiffs must show they lack an adequate remedy at law before they may recover

22               equitable relief.

23          •    Whether the relief Plaintiffs seek would be a content-based restriction, subject to strict

24               scrutiny, that would contravene free speech protections enshrined by the First Amendment.

25               See Sarver v. Chartier, 813 F.3d 891, 903 (9th Cir. 2016) (“California’s right of publicity

26               law clearly restricts speech based upon its content.”).

27          •    Whether the Communications Decency Act (“CDA”), 28 U.S.C. § 230, bars Plaintiffs’

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 1               claims because they seek to hold Thomson Reuters, the provider of an interactive computer

 2               service, liable as a publisher or speaker of third-party content. See, e.g., Carafano v.

 3               Metrosplash.com, Inc., 339 F.3d 1119, 1125 (9th Cir. 2003) (section 230 barred

 4               misappropriation of right of publicity claim).

 5          •    Whether the Complaint should be stricken and attorneys’ fees and costs awarded under

 6               California’s anti-SLAPP statute, Cal. Civ. Proc. Code § 425.16, because Plaintiffs’ claims

 7               arise from Thomson Reuters’ exercise of free speech and Plaintiffs cannot show the claims

 8               are legally sufficient and factually substantiated.

 9          •    Whether Plaintiffs can establish any entitlement to injunctive relief.

10          •    Whether this case is unsuitable for class treatment under Federal Rule of Civil Procedure 23.

11      4. Motions

12          Thomson Reuters’ Motion to Stay Discovery, see ECF No. 34, is fully briefed and the Court

13   will rule on the motion on the papers, see ECF No. 49. Thomson Reuters’ Motion to Dismiss Pursuant

14   to FRCP 12(b)(6), and Motion to Strike Pursuant to California Code of Civil Procedure § 425.16(b), see

15   ECF Nos. 28, 34, 35, were heard on June 24, 2021.

16          Plaintiffs intend to file a motion for class certification once discovery is substantially underway

17   and may file a motion for summary judgment once discovery has closed.

18          Should the Court grant Thomson Reuters’ Motion to Dismiss but dismiss the Complaint without

19   prejudice, Thomson Reuters anticipates filing a motion to dismiss any amended complaint. As to any

20   claims that survive, Thomson Reuters may file a motion for summary judgment at the appropriate time

21   and will oppose any motion for class certification.

22      5. Amendment of Pleadings

23          a.      Plaintiffs’ Statement: Plaintiffs may decide to amend their complaint depending on this

24   Court’s ruling on Thomson Reuters’ motions to dismiss and strike, and they may also decide to amend

25   as discovery moves forward. Plaintiffs propose a deadline for amended pleadings of 270 days after

26   discovery begins. Plaintiffs’ proposed schedule is otherwise keyed to the start of discovery or this

27   Court’s entry of an order on class certification.

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 1          b.      Defendant’s Statement: Thomson Reuters believes that the Court should defer setting a

 2   case schedule, including a deadline for amendment of pleadings, until the pleadings are set (i.e., a

 3   Complaint and an Answer are filed).

 4      6. Evidence Preservation

 5          The parties reviewed the District’s ESI Guidelines. They are taking steps to ensure all

 6   potentially relevant evidence is preserved.

 7          a.      Plaintiffs’ Statement: In connection with the parties’ Rule 26(f) conference, Plaintiffs

 8   asked Thomson Reuters to provide additional preservation information in line with the Northern

 9   District’s ESI Checklist. Thomson Reuters declined to provide any details concerning the scope or

10   nature of its litigation hold. Plaintiffs have been instructed to preserve all potentially relevant evidence.

11          b.      Defendant’s Statement: During the parties’ Rule 26(f) conference, Thomson Reuters

12   informed Plaintiffs of steps it has taken to preserve potentially relevant information. Thomson Reuters

13   expects that the parties will continue to have discussions regarding their ESI obligations and believes

14   that both discovery and detailed discussions regarding its scope should be deferred until after the

15   pleadings are set.

16      7. Disclosures

17          a.      Plaintiff’s Statement: Plaintiff proposes that the parties exchange Initial Disclosures on

18   August 24, 2021, two weeks from the date of the submission of this Joint Statement.

19          b.      Defendant’s Statement: During the parties’ Rule 26(f) conference, pursuant to Federal

20   Rule of Civil Procedure 26(a)(1)(C), Thomson Reuters objected that initial disclosures are not

21   appropriate at this time in light of Thomson Reuters’ pending Motion to Dismiss and Motion to Stay

22   Discovery. Thomson Reuters proposes that the parties exchange Rule 26(a) disclosures 14 days after

23   there is no longer a pleading challenge that would result in the Court dismissing the case.

24      8. Discovery

25      •   Discovery taken to date: No discovery has been taken to date.

26      •   Scope of anticipated discovery: Each of the parties anticipates taking discovery concerning, at a

27          minimum, the factual and legal issues they identified in sections 2 and 3, above. In addition,

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 1       Thomson Reuters anticipates that it will seek discovery regarding its defenses, including

 2       Plaintiffs’ allegations of damage, their consent to the sharing of their personal information, the

 3       extent to which Plaintiffs’ information is available through other sources, whether anyone other

 4       than Plaintiffs and their representatives accessed Plaintiffs’ information, and the extent to which

 5       Plaintiffs have placed themselves in the public eye.

 6   •   Proposed limitations or modifications of the discovery rules: The parties do not propose

 7       limitations or modifications of the discovery rules at this time but will continue to meet and

 8       confer on these issues as appropriate.

 9   •   Brief report on stipulated e-discovery order: The parties anticipate moving this Court to enter an

10       ESI stipulation and protective order, based on this Court’s model orders and stipulations. The

11       parties disagree on whether this process should begin now or wait until such time that there is

12       no longer a pleading challenge that would result in the Court dismissing the case.

13   •   Date for completion of discovery: The parties’ respective positions regarding a schedule for

14       discovery are set forth in the scheduling table in Section 17.

15   •   Preservation of ESI: The parties are not currently aware of any issues regarding disclosure,

16       discovery, or preservation of ESI, including the form or forms in which it should be produced,

17       and the parties will cooperate to attempt to resolve any such issues that may arise. During the

18       parties’ meet and confer on this CMC Statement, Thomson Reuters declined to provide specific

19       details about preservation efforts. Consequently, Plaintiffs reserve the right to raise concerns

20       once more is disclosed about Thomson Reuters’ preservation efforts.

21   •   Privilege or work product protection: The parties are not currently aware of any issues

22       regarding claims of privilege or of protection as trial-preparation materials, and the parties will

23       cooperate to attempt to resolve any such issues that may arise.

24   •   Changes or limitations on discovery: The parties do not currently propose any changes in the

25       limitations on discovery imposed under these rules or by local rule, but the parties reserve the

26       right to propose additional changes following resolution of Thomson Reuters’ pleadings-based

27       challenges (e.g., in response to any amended complaint).

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                     JOINT CASE MANAGEMENT CONFERENCE STATEMENT
                                  Case No. 3:21-cv-1418-EMC
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 1      •   Discovery disputes: As noted above, Thomson Reuters has moved for a protective order

 2          pursuant to Federal Rule of Civil Procedure 26(c) staying discovery pending resolution of its

 3          Motion to Dismiss or until there is no longer a pleading challenge that would result in the Court

 4          dismissing the case.

 5      There are no other issues under Rules 26(c) or 16(b) or 16(c) at this time.

 6      9. Class Actions

 7          All attorneys of record for the parties have reviewed the Procedural Guidance for Class Action

 8   Settlements.

 9          a.       Plaintiffs’ Statement: Plaintiffs propose filing a motion for class certification 270 days

10   after discovery begins. Plaintiffs anticipate certifying a California class of all persons residing in the

11   state of California whose name, photographs, personal identifying information, or other personal data is

12   or was included in the CLEAR database during the limitations period. Plaintiffs may seek certification

13   under Federal Rules of Civil Procedure 23(b)(2), 23(b)(3), and/or 23(c)(4).

14          b.       Defendant’s Statement: Thomson Reuters does not believe this case is suitable for

15   class treatment and intends to oppose any motion seeking class certification. Thomson Reuters believes

16   that the Court should defer setting a deadline for class certification until after the pleadings are set.

17      10. Related Cases

18          To the parties’ knowledge, there are no related cases pending in this District or another court or

19 administrative body.

20      11. Relief

21          a.       Plaintiff’s Statement: Plaintiffs seek damages, restitution, and disgorgement in an

22 amount yet to be determined; declaratory and injunctive relief, including public injunctive relief; costs

23 and attorneys’ fees; and such other relief as the Court may deem necessary and proper.

24          b.       Defendant’s Statement: Plaintiffs are not entitled to relief in any form, and Thomson

25 Reuters opposes Plaintiffs’ prayer for relief.

26      12. Settlement and ADR

27          The parties have filed an ADR Certification as required by ADR Local Rule 3-5(b).

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 1      19. Disclosure of Non-Party Interested Entities or Persons

 2          a.      Plaintiffs’ Statement: Plaintiffs know of no persons or entities that have a financial

 3   interest in the subject matter in controversy or in a party to the proceeding, or any other kind of interest

 4   that could be substantially affected by the outcome of the proceeding. See ECF No. 45.

 5          b.      Defendant’s Statement: Thomson Reuters filed its Corporate Disclosure Statement and

 6 Certificate of Interested Entities or Persons on February 26, 2021. See ECF No. 26. Thomson Reuters

 7 has no parent corporation. Westlaw and CLEAR, products referenced in the Complaint, are products

 8 offered by Thomson Reuters’ subsidiary, West Publishing Corporation. See ECF No. 28 n.1. As of this

 9 date, Thomson Reuters is unaware of any other person or entity, other than West Publishing
10 Corporation and the named parties, with a financial or other interest that could be substantially affected

11 by the outcome of this proceeding.

12      20. Professional Conduct

13          All attorneys of record for the parties have reviewed the Guidelines for Professional Conduct

14 for the Northern District of California.

15      21. Other Matters

16          The parties are not presently aware of any other matters that may facilitate the just, speedy, and

17 inexpensive disposition of this action.

18
      Dated: August 10, 2021                                   Respectfully submitted,
19
                                                                /s/ Andre M. Mura
20

21                                                             Eric H. Gibbs (SBN 178658)
                                                               Andre M. Mura (SBN 298541)
22                                                             Amanda M. Karl (SBN 301088)
                                                               Jeffrey B. Kosbie (SBN 305424)
23                                                             GIBBS LAW GROUP LLP
                                                               505 14th Street, Suite 1110
24
                                                               Oakland, California 94612
25                                                             Telephone: (510) 350-9700
                                                               Facsimile: (510) 350-9701
26                                                             ehg@classlawgroup.com
                                                               amm@classlawgroup.com
27                                                             amk@classlawgroup.com
                                                               jbk@classlawgroup.com
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                         JOINT CASE MANAGEMENT CONFERENCE STATEMENT
                                      Case No. 3:21-cv-1418-EMC
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 1                                             Jennifer D. Bennett (SBN 296726)
                                               Neil K. Sawhney (SBN 300130)
 2                                             GUPTA WESSLER PLLC
                                               100 Pine Street, Suite 1250
 3
                                               San Francisco, CA 94111
 4                                             Telephone: (415) 573-0336
                                               jennifer@guptawessler.com
 5                                             neil@gutawessler.com
 6                                             Benjamin Elga (pro hac vice)
                                               Alice Buttrick (pro hac vice)
 7
                                               JUSTICE CATALYST LAW INC.
 8                                             123 William Street, 16th floor
                                               New York, NY 10038
 9                                             Telephone: (518) 732-6703
                                               belga@justicecatalyst.org
10                                             abuttrick@justicecatalyst.org
11
                                               Albert Fox Cahn (pro hac vice)
12                                             SURVEILLANCE TECHNOLOGY
                                               OVERSIGHT PROJECT
13                                             40 Rector Street, 9th Floor
                                               New York, NY 10006
14                                             albert@stopspying.org
15
                                               Attorneys for Plaintiffs Cat Brooks and
16                                             Rasheed Shabazz and the Proposed Class

17
     DATED: August 10, 2021                    PERKINS COIE LLP
18
                                                Susan D. Fahringer
19
                                               Susan D. Fahringer, Bar No. 21567
20                                             Nicola C. Menaldo, pro hac vice
                                               Anna M. Thompson, pro hac vice
21                                             PERKINS COIE LLP
                                               1201 Third Avenue, Suite 4900
22                                             Seattle, WA 98101-3099
                                               Telephone: (206) 359-8000
23
                                               Facsimile: (206) 359-9000
24                                             SFahringer@perkinscoie.com
                                               NMenaldo@perkinscoie.com
25                                             AnnaThompson@perkinscoie.com
26

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                   JOINT CASE MANAGEMENT CONFERENCE STATEMENT
                                Case No. 3:21-cv-1418-EMC
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                                            Gabriella Gallego, Bar No. 324226
 1                                          PERKINS COIE LLP
 2                                          3150 Porter Drive
                                            Palo Alto, CA 94304-1212
 3                                          Telephone: (650) 838-4300
                                            Facsimile: (650) 838-4350
 4                                          GGallego@perkinscoie.com
 5                                          Attorneys for Defendant
 6                                          Thomson Reuters Corporation

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               JOINT CASE MANAGEMENT CONFERENCE STATEMENT
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 1                                              ATTESTATION

 2          Pursuant to Civil Local Rule 5-1(i)(3), I attest that concurrence in the filing of this document

 3   has been obtained from the other signatory.

 4

 5                                                              /s/ Andre M. Mura

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                        JOINT CASE MANAGEMENT CONFERENCE STATEMENT
                                     Case No. 3:21-cv-1418-EMC


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