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Case No.: 3:20-Cv-05787-Si [Proposed] Order On Motion To Dismiss, Doc. 69-5 — Children's Health Defense v. Facebook Inc

Date
2020-12-21

Summary

A proposed order submitted by counsel for defendants Facebook, Inc. and Mark Zuckerberg in Children's Health Defense v. Facebook, Inc., et al., Case No. 3:20-cv-05787-SI, in the U.S. District Court for the Northern District of California, filed December 21, 2020 as Document 69-5. The unsigned draft would grant the defendants' motion to dismiss the Second Amended Complaint, which it describes as bringing four claims: a Bivens claim, a Lanham Act false-advertising claim under 15 U.S.C. § 1125(a)(1)(B), a civil RICO claim under 18 U.S.C. § 1962(c), and a claim for declaratory relief. The proposed reasoning includes lack of federal action, First Amendment protection, and the Communications Decency Act, 47 U.S.C. § 230(c)(1). It would dismiss the complaint with prejudice, finding further amendment futile, and leaves a signature line for Hon. Susan Illston.

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           Case 3:20-cv-05787-SI Document 69-5 Filed 12/21/20 Page 1 of 4




1    SONAL N. MEHTA (SBN 222086)
      Sonal.Mehta@wilmerhale.com
2    WILMER CUTLER PICKERING
      HALE AND DORR LLP
3    2600 El Camino Real, Suite 400
     Palo Alto, California 94306
4    Telephone: (650) 858-6000
     Facsimile: (650) 858-6100
5
     ARI HOLTZBLATT (pro hac vice)
6     Ari.Holtzblatt@wilmerhale.com
     MOLLY M. JENNINGS (pro hac vice)
7     Molly.Jennings@wilmerhale.com
     ALLISON SCHULTZ (pro hac vice)
8     Allison.Schultz@wilmerhale.com
     WILMER CUTLER PICKERING
9     HALE AND DORR LLP
     1875 Pennsylvania Ave, NW
10   Washington, DC 20006
     Telephone: (202) 663-6000
11   Facsimile: (202) 663-6363

12   Attorneys for Defendants
     FACEBOOK, INC. and
13   MARK ZUCKERBERG

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17                                 UNITED STATES DISTRICT COURT

18                                NORTHERN DISTRICT OF CALIFORNIA

19                                      SAN FRANCISCO DIVISION

20   CHILDREN’S HEALTH DEFENSE,
                                                      Case No. 3:20-cv-05787-SI
21                                  Plaintiff,
22                                                    [PROPOSED] ORDER ON
             v.
                                                      FACEBOOK, INC.’S AND MARK
23   FACEBOOK, INC., ET AL.,                          ZUCKERBERG’S MOTION TO
                                                      DISMISS THE SECOND AMENDED
24                                  Defendants.       COMPLAINT
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     CASE NO.: 3:20-CV-05787-SI                          [PROPOSED] ORDER ON MOTION TO DISMISS
           Case 3:20-cv-05787-SI Document 69-5 Filed 12/21/20 Page 2 of 4




1           [PROPOSED] ORDER ON FACEBOOK, INC.’S AND MARK ZUCKERBERG’S

2                   MOTION TO DISMISS THE SECOND AMENDED COMPLAINT

3            In its Second Amended Complaint, plaintiff Children’s Health Defense (“CHD”) brings four

4    claims against Facebook, Inc. and Mark Zuckerberg. Count I seeks damages under the implied cause

5    of action recognized in Bivens v. Six Unknown Named Agents of the Federal Bureau of Narcotics,

6    403 U.S. 388 (1971). Count II claims that Defendants violated the Lanham Act’s false-advertising

7    provision, 15 U.S.C. § 1125(a)(1)(B). Count III asserts that Defendants committed multiple acts of

8    wire fraud in a manner that gives CHD a civil claim under the Racketeer Influenced and Corrupt

9    Organizations (“RICO”) statute, 18 U.S.C. § 1962(c). And Count IV seeks declaratory relief
10   associated with Counts I-III.
11           Count I is dismissed because CHD has not plausibly alleged federal action. Facebook and
12   Mr. Zuckerberg are private actors, and CHD has not sufficiently alleged that any of the challenged
13   conduct is “fairly attributable” to the federal government. Belgau v. Inslee, 975 F.3d 940, 946 (9th
14   Cir. 2020). Many of the entities CHD identifies—the World Health Organization, the CDC
15   Foundation, Infragard, and the British Government—are not part of the federal government, and do
16   not otherwise qualify as state actors. And CHD’s allegations concerning Facebook’s and Mr.
17   Zuckerberg’s interactions with the federal government satisfy neither the “joint action” doctrine, See
18   Mathis v. Pacific Gas & Elec. Co., 75 F.3d 498, 503 (9th Cir. 1995), nor the “governmental nexus”
19   test, see Kirtley v. Rainey, 326 F.3d 1088, 1094-1095 (9th Cir. 2003). Count I additionally fails
20   because neither Facebook nor Mr. Zuckerberg is a proper Bivens defendant here. Bivens does not
21   apply to corporations, like Facebook. Correctional Servs. Corp. v. Malesko, 534 U.S. 61, 70-71
22   (2001). And CHD has not alleged that Mr. Zuckerberg had any personal involvement in any decision
23   specific to CHD. See Ashcroft v. Iqbal, 556 U.S. 662, 676 (2009). Finally, and in any event, the
24   Court declines to expand Bivens liability to the novel facts presented here. See Ziglar v. Abbasi, 137
25   S. Ct. 1843, 1859 (2017).
26           Moreover, because Counts II and III arise out of activity by Facebook and Mr. Zuckerberg
27   that is fully protected by the First Amendment (i.e., their statements and content-moderation
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     CASE NO.: 3:20-CV-05787-SI                                  [PROPOSED] ORDER ON MOTION TO DISMISS
           Case 3:20-cv-05787-SI Document 69-5 Filed 12/21/20 Page 3 of 4




1     decisions), CHD cannot hold Facebook or Mr. Zuckerberg liable for those actions. Counts II and

2     III accordingly must be dismissed.

3             Counts II and III are additionally barred by the Communications Decency Act (“CDA”),

4     47 U.S.C. § 230(c)(1), because they would treat Facebook and Mr. Zuckerberg “as the publisher

5     or speaker of … information provided by another information content provider.” Id. § 230(c)(1).

6     The content at issue was created by either CHD itself (CHD’s posts) or by third-party fact-

7     checkers (the fact-checks). “[R]esponsibility for what makes the displayed content illegal or

8     actionable,” Kimzey v. Yelp!, 836 F.3d 1263, 1269 n.4 (9th Cir. 2016), rests with those third

9     parties—not Facebook. Counts II and III are therefore dismissed on this ground as well.
10            Count II is also dismissed because CHD has not stated a false-advertising claim under the
11    Lanham Act, for two reasons. First, CHD does not allege the kind of commercial injury
12    cognizable under the Act. It alleges only injuries (1) arising out of its relationship to Facebook as a
13    customer, not competitor, and (2) to its position in the “marketplace of ideas.” These alleged
14    injuries are insufficient to confer statutory standing under the Lanham Act. See Animal Legal
15    Defense Fund v. HVFG LLC, 939 F. Supp. 2d 992, 1000 (N.D. Cal. 2013). Second, the complaint
16    nowhere alleges a promotional statement by Facebook or Mr. Zuckerberg that contained false
17    representations about CHD. See Southland Sod Farms v. Stover Seed Co., 108 F.3d 1134, 1139
18    (9th Cir. 1997).
19            Count III is additionally dismissed because CHD has not stated a civil RICO claim. CHD
20    has not pleaded any predicate act of wire fraud because it has not identified any statements by
21    Facebook or Mr. Zuckerberg that were both fraudulent (i.e., designed to deprive a victim of
22    money or property, see United States v. Lew, 875 F.2d 219, 221 (9th Cir. 1989)) and had a
23    tendency to mislead the intended audience, see Sosa v. DIRECTV, Inc., 437 F.3d 923, 941 (9th
24    Cir. 2006). Moreover, CHD lacks statutory standing to bring a civil RICO claim, see 18 U.S.C.
25    § 1964(c), because its injuries were not the direct result of the alleged fraudulent scheme, see Anza
26    v. Ideal Steel Supply Corp., 547 U.S. at 451, 459 (2006). CHD’s civil RICO claim additionally
27    fails because it has not pleaded a “pattern” as is required for civil RICO liability. See Sever v.
28    Alaska Pulp Corp., 978 F.2d 1529, 1535 (9th Cir. 1992).
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     CASE NO.: 3:20-CV-05787-SI                                   [PROPOSED] ORDER ON MOTION TO DISMISS
           Case 3:20-cv-05787-SI Document 69-5 Filed 12/21/20 Page 4 of 4




1             Count IV is dismissed because, while “the Declaratory Judgment Act creates a remedy for

2     litigants,” it “is not an independent cause of action.” County of Santa Clara v. Trump, 267 F.

3     Supp. 3d 1201, 1215-1216 (N.D. Cal. 2017).

4             In addition to the above failings, CHD has not stated any claim against Mr. Zuckerberg

5     because it has not adequately alleged his personal involvement in any of the conduct at issue and

6     has not established the prerequisites for any of the third-party liability doctrines it seeks to invoke.

7             At this point, it is clear that these “deficiencies cannot be cured by amendment,” Cheung v.

8     Wells Fargo Bank, N.A., 987 F. Supp. 2d 972, 976 (N.D. Cal. 2013). CHD has filed three

9     complaints—two of which were filed with full knowledge of defendants’ motion-to-dismiss
10    arguments—and has not corrected the failings of its pleading. Further leave to amend the
11    complaint would therefore be futile.
12            Defendants Facebook, Inc.’s and Mark Zuckerberg’s Motion to Dismiss the Complaint is
13    GRANTED. CHD’s Complaint is DISMISSED WITH PREJUDICE in its entirety.
14

15    Dated: _______________________

16                                                                      _____________________________
17                                                                       By: Hon. Susan Illston
                                                                             United States District Judge
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     CASE NO.: 3:20-CV-05787-SI                                    [PROPOSED] ORDER ON MOTION TO DISMISS


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