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OPPOSITION/RESPONSE (re 167 Administrative Motion to Consider… — Brooks v. Thomson Reuters Corporation (Dkt. 171)

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Defendant Thomson Reuters' Statement in Response to Plaintiffs' Administrative Motion to Consider Whether Another Party's Materials Should Be Sealed (Dkt. 167), Document 171, filed 03/10/23 in Brooks v. Thomson Reuters Corporation, Case No. 3:21-cv-01418-EMC (N.D. Cal.). It says Thomson Reuters seeks to seal only the items in Table 1, which concern the composition of the CLEAR customer base, CLEAR's technical processes, and figures on CLEAR searches and Plaintiffs' expert revenue estimates for Californians. The table gives each passage and a justification citing the Appold Declaration (Dkt. 150-3), and the statement asks that those materials remain under seal. Anna Mouw Thompson signed it on March 10, 2023.

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“OPPOSITION/RESPONSE (re 167 Administrative Motion to Consider… — Brooks v. Thomson Reuters Corporation (Dkt. 171).” Original at ecf.cand.uscourts.gov, No. 3:21-cv-01418-EMC, Doc. 171. Archived at Pandemic Darlings, https://pandemicdarlings.com/court-filings/full-docket-brooks-thomsonreuters-cand-374304/2023-03-10-gov-uscourts-cand-374304-171-0-gov-uscourts-cand-374304-171-0/, SHA-256 0e6d03bcc8f21b1aad7c81514222d4ebb927685a0eb313eb51283bfdf4c9c54d.

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     Case 3:21-cv-01418-EMC              Document 171     Filed 03/10/23    Page 1 of 6



 1    Susan D. Fahringer, Bar No. 21567                     Gabriella Gallego, Bar No. 324226
      SFahringer@perkinscoie.com                            GGallego@perkinscoie.com
 2    Nicola C. Menaldo, pro hac vice                       PERKINS COIE LLP
 3    NMenaldo@perkinscoie.com                              3150 Porter Drive
      Erin K. Earl, pro hac vice                            Palo Alto, CA 94304-1212
 4    EEarl@perkinscoie.com                                 Telephone: 650.838.4300
      Anna M. Thompson, pro hac vice                        Facsimile: 650.838.4350
 5    AnnaThompson@perkinscoie.com
      PERKINS COIE LLP                                      Hayden M. Schottlaender, pro hac vice
 6    1201 Third Avenue, Suite 4900                         HSchottlaender@perkinscoie.com
 7    Seattle, WA 98101-3099                                PERKINS COIE LLP
      Telephone: 206.359.8000                               500 N. Akard Street, Suite 3300
 8    Facsimile: 206.359.9000                               Dallas, TX 75201-3347
      Attorneys for Defendant                               Telephone: 214.965.7700
 9    Thomson Reuters Corporation                           Facsimile: 214.965.7799
10
                                  UNITED STATES DISTRICT COURT
11
                              NORTHERN DISTRICT OF CALIFORNIA
12
                                         SAN FRANCISCO DIVISION
13

14
     CAT BROOKS and RASHEED                             Case No. 3:21-cv-01418-EMC
15
     SHABAZZ, individually and on behalf of
16   all others similarly situated,                     DEFENDANT THOMSON REUTERS’
                                                        STATEMENT IN RESPONSE TO
17                         Plaintiffs,                  PLAINTIFFS’ ADMINISTRATIVE
                                                        MOTION TO CONSIDER WHETHER
18          v.                                          ANOTHER PARTY’S MATERIALS
                                                        SHOULD BE SEALED (DKT. 167)
19   THOMSON REUTERS CORPORATION,
                                                        Judge: Hon. Edward M. Chen
20                         Defendant.
21

22

23

24

25

26

27

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     Case No. 3:21-cv-01418-EMC                              THOMSON REUTERS’ SEALING STATEMENT
     Case 3:21-cv-01418-EMC            Document 171         Filed 03/10/23      Page 2 of 6



 1          Thomson Reuters submits this Statement pursuant to Civil Local Rules 7-11 and 79-5 and

 2   in response to Plaintiffs’ Administrative Motion to Consider Whether Another Party’s Materials

 3   Should be Sealed (“Motion”) (Dkt. 167). Through this Statement, Thomson Reuters seeks an

 4   order to file under seal a subset of the materials originally designated in Plaintiffs’ Motion. This

 5   Statement is supported by the previously filed Declaration of Kevin Appold in Support of

 6   Thomson Reuters’ Administrative Motion to File Under Seal Confidential Information (Dkt.

 7   150-3); the Stipulated Protective Order (Dkt. 70) entered in this action; and all pleadings and

 8   papers on file.

 9                                          LEGAL STANDARD

10          There is a “strong presumption in favor of access” to court records, but “access to judicial

11   records is not absolute.” Kamanaka v. City and County of Honolulu, 447 F.3d 1172, 1178 (9th

12   Cir. 2006) (quoting Foltz v. State Farm Mut. Ins., 331 F.3d 1122, 1135 (9th Cir. 2003)). The legal

13   standard applicable to whether a document should be sealed depends on whether the document is

14   attached to a dispositive motion or a non-dispositive motion. See id. at 1179-80. Documents

15   attached to dispositive motions—like motions for summary judgment—may be sealed only when

16   the proponent establishes “compelling reasons” for doing so. Id. But documents attached to non-

17   dispositive motions that relate to the merits only tangentially—like motions to exclude expert

18   testimony consistent with Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993)—

19   may be sealed upon a lesser showing of good cause. See, e.g., Exeltis USA Inc. v. First Databank,

20   Inc., No. 17-CV-04810-HSG, 2020 WL 2838812, at *2 (N.D. Cal. June 1, 2020) (applying

21   compelling reasons standard to materials attached to summary judgment motion and “the lower

22   good cause standard for those documents related to the parties’ Daubert motions”). What reasons

23   are sufficient to justify sealing documents is generally “left to the sound discretion of the trial

24   court.” Ctr. for Auto Safety v. Chrysler Grp., LLC, 809 F.3d 1092, 1097 (9th Cir. 2016) (quoting

25   Nixon v. Warner Commc’ns, Inc., 435 U.S. 589, 599 (1978)).

26          The lesser, good cause standard applies here because the information at issue relates to

27   Thomson Reuters’ Motion to Exclude the Testimony of Finance Scholars Group, Inc. (Dr. Terry

28
     Case No. 3:21-cv-01418-EMC                       -1-      THOMSON REUTERS’ SEALING STATEMENT
     Case 3:21-cv-01418-EMC           Document 171         Filed 03/10/23     Page 3 of 6



 1   Lloyd) (Dkt. 157-2). But even if the higher, compelling reasons, standard applied, that standard is

 2   also met for the same reasons discussed below and in the Appold Declaration (Dkt. 150-3).

 3                                              ARGUMENT

 4          Thomson Reuters does not seek to seal any information provisionally filed under seal by

 5   Plaintiffs except for the information described in Table 1 below. The redactions proposed in

 6   Table 1 are narrowly tailored to target non-public, sensitive information about the composition of

 7   the CLEAR customer base; CLEAR’s technical processes; and figures related to CLEAR

 8   searches and Plaintiffs’ expert’s estimates regarding revenue attributable to “Californians.”

 9   As further explained in the justification table of Table 1 and in the previously filed Appold

10   Declaration (Dkt. 150-3) cited therein, sealing is justified because the redacted text reveals non-

11   public, sensitive “business information that might harm a litigant’s competitive standing,” Nixon,

12   435 U.S. at 598.

13                                                       Table 1

14
            Cite              Portion(s) to Seal                          Justification
15
        Dkt. 167-3      Page 2, line 14 (between           The redacted text reveals non-public
16      Pls. Opp.       “there was a” and “between”)       information about the proportion of
17      (2:14)                                             government versus non-government CLEAR
                                                           customers, which is not publicly known, and
18                                                         which could harm Thomson Reuters if
                                                           publicly disclosed, including because
19                                                         competitors could “learn about how
                                                           Thomson Reuters has positioned CLEAR in
20
                                                           the marketplace.” See Dkt. 150-3 ¶ 2.
21      Dkt. 167-3      Page 2, line 17 (between “that     Same as row above.
22      Pls. Opp.       if” and “of CLEAR’s”)
        (2:17)
23
        Dkt. 167-3      Page 2, line 18 (between           Same as rows above.
24      Pls. Opp.       “and” and “were”)
        (2:18)
25
        Dkt. 167-3      Page 2, line 22 (between           Same as rows above.
26      Pls. Opp.       “were” and “then”)
        (2:22)
27

28
     Case No. 3:21-cv-01418-EMC                     -2-       THOMSON REUTERS’ SEALING STATEMENT
     Case 3:21-cv-01418-EMC          Document 171         Filed 03/10/23      Page 4 of 6



 1
            Cite              Portion(s) to Seal                           Justification
 2
        Dkt. 167-3     Page 8, line 10 (between           Same as rows above.
 3      Pls. Opp.      “about” and “of CLEAR’s”)
        (8:10)
 4
        Dkt. 167-3     Page 8, line 11 (between           Same as rows above.
 5
        Pls. Opp.      “and” and “are”)
 6      (8:11)

 7      Dkt. 167-3     Page 8, line 13 (between           Same as rows above.
        Pls. Opp.      “them” and “to account”)
 8      (8:13)

 9      Dkt. 167-3     Page 8, line 22 (between “to       The redacted text, alone or in combination
        Pls. Opp.      be” and “TR”)                      with other text, reveals detailed information
10      (8:22)                                            about the proportion of CLEAR searches run
                                                          with a “state” and/or “California” input. This
11
                                                          information was cited in Plaintiffs’ brief to
12                                                        justify their expert’s estimates of revenue
                                                          attributable to “Californians.” Public
13                                                        disclosure of this information would harm
                                                          Thomson Reuters, including because it could
14                                                        reveal “confidential information about
                                                          CLEAR finances and the makeup of CLEAR
15
                                                          data,” and because the estimates of
16                                                        Plaintiffs’ experts “are inaccurate, or at least
                                                          grossly misleading, and could therefore
17                                                        result in a misleading or inaccurate picture
                                                          of CLEAR and related business practices.”
18                                                        Dkt. 150-3 ¶ 10.
19      Dkt. 167-3     Page 8, line 22.5 (between         Same as row above.
        Pls. Opp.      “field” and “percent”)
20
        (8:22.5)
21
        Dkt. 167-5     Page 2, lines 9-11 (after          The redacted text reveals “information
22      Mura Decl.     “information requested by          regarding the technical processes of CLEAR,
        Ex. 2          Plaintiffs by determining the      such as the function and names of internal
23                     total number of” and before        databases” and components thereof. Public
                       “and used to help facilitate       disclosure of this information would harm
24                     person searches run through”)      Thomson Reuters, including “because
25                                                        competitors may . . . be able to leverage
                                                          technical information for their own
26                                                        competitive purposes.” Dkt. 150-3 ¶ 9.

27      Dkt. 167-5     Page 2, line 13 (after             Same as row above.
        Mura Decl.     “determine the subset of
28      Ex. 2
     Case No. 3:21-cv-01418-EMC                     -3-      THOMSON REUTERS’ SEALING STATEMENT
     Case 3:21-cv-01418-EMC          Document 171         Filed 03/10/23       Page 5 of 6



 1
            Cite              Portion(s) to Seal                           Justification
 2
                       those” and before “a current or
 3                     past California address.”)
 4      Dkt. 167-5     Page 2, line 16 (after “Note   Same as rows above.
        Mura Decl.     that a single natural person
 5
        Ex. 2          may be associated with several
 6                     different” and before “such
                       that”)
 7
        Dkt. 167-5     Page 2, line 18 (after “The fact Same as rows above.
 8      Mura Decl.     that” and before “a current or
        Ex. 2          past California address does
 9                     not”)
10      Dkt. 167-5     Page 2, line 26 through page       Same as rows above.
        Mura Decl.     3, line 1 (after “2.” entire
11
        Ex. 2          sentence)
12
        Dkt. 167-5     Page 3, line 2 (after “The         Same as rows above.
13      Mura Decl.     totals include” and before
        Ex. 2          “which relate to persons who
14                     are deceased and/or who”)

15      Dkt. 167-5     Page 3, lines 4-5 (after “As of    Same as rows above.
        Mura Decl.     January 9, 2023,” and before
16      Ex. 2          “of these contained a current      In addition, the redacted text reveals
                       or past California address.”)      “confidential information about . . . the
17
                                                          makeup of CLEAR data,” Dkt. 150-3 ¶ 10,
18                                                        and was relied upon in Plaintiffs’ brief to
                                                          justify their expert’s estimates of revenue
19                                                        attributable to “Californians.” Public
                                                          disclosure would harm Thomson Reuters by
20                                                        revealing “information regarding the
                                                          technical processes of CLEAR,” id. ¶ 9, and
21
                                                          “confidential information about . . . the
22                                                        makeup of CLEAR data,” id. ¶ 10, and
                                                          because the estimates of Plaintiffs’ experts
23                                                        “are inaccurate, or at least grossly
                                                          misleading, and could therefore result in a
24                                                        misleading or inaccurate picture of CLEAR
25                                                        and related business practices,” id.

26      Dkt. 167-5     Page 5, lines 4.5-8.5 (all eight   The redacted text reveals detailed
        Mura Decl.     rows of data/information           information about the proportion of CLEAR
27      Ex. 2          underneath the table column        searches run with a “state” and/or
                       headers)                           “California” input. This information was
28                                                        relied upon in Plaintiffs’ brief to justify their
     Case No. 3:21-cv-01418-EMC                     -4-      THOMSON REUTERS’ SEALING STATEMENT
     Case 3:21-cv-01418-EMC          Document 171        Filed 03/10/23      Page 6 of 6



 1
            Cite              Portion(s) to Seal                         Justification
 2
                                                         expert’s estimates of revenue attributable to
 3                                                       “Californians.” Public disclosure of this
                                                         information would harm Thomson Reuters,
 4
                                                         including because it could reveal
 5                                                       “confidential information about CLEAR
                                                         finances and the makeup of CLEAR data,”
 6                                                       and because the estimates of Plaintiffs’
                                                         experts “are inaccurate, or at least grossly
 7                                                       misleading, and could therefore result in a
                                                         misleading or inaccurate picture of CLEAR
 8
                                                         and related business practices.” Dkt. 150-3
 9                                                       ¶ 10.

10
                                             CONCLUSION
11
            For the reasons discussed above and in the previously filed declaration of Kevin Appold,
12
     Thomson Reuters respectfully requests that the Court issue an order authorizing the materials
13
     described in Table 1 above to remain under seal.
14

15
     Dated: March 10, 2023                          PERKINS COIE LLP
16

17
                                                    By: /s/ Anna Mouw Thompson
18                                                       Anna Mouw Thompson
19                                                       AnnaThompson@perkinscoie.com

20                                                  Attorneys for Defendant Thomson Reuters
                                                    Corporation
21

22

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24

25

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     Case No. 3:21-cv-01418-EMC                    -5-      THOMSON REUTERS’ SEALING STATEMENT


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