Mealey's Cyber Tech & E-Commerce : Mealey's : Legal News & Analysis

Mealey's Cyber Tech & E-Commerce

October 16, 2024
Magistrate Denies AGs’ Bid To Stay Discovery Order In Social Media Addiction MDL

OAKLAND, Calif. — A California federal magistrate judge on Oct. 15 denied a motion by state attorneys general to stay a discovery order in a product liability multidistrict ligation over the purported addictive qualities for adolescents of several of the largest social media platforms, finding that the attorneys general failed to show a likelihood of success on the merits or irreparable harm absent the stay.
October 16, 2024
South Carolina Agency To High Court: No Immunity Waiver In Discovery Subpoena Row

WASHINGTON, D.C. — The South Carolina Department of Parks, Recreation and Tourism (SCDPRT) in an Oct. 15 reply brief defends its application with the U.S. Supreme Court to stay a Fourth Circuit U.S. Court of Appeals mandate of a ruling that the department waived sovereign immunity in a discovery subpoena with Google LLC, arguing that state law and binding precedent establish that the state’s attorney general has no authority to waive its immunity.
October 15, 2024
Google Seeks Stay Of Injunction In Antitrust Dispute Over Google Play App Monopoly

SAN FRANCISCO — After a California federal judge overseeing an antitrust dispute between Epic Games Inc. and Google LLC issued a three-year permanent injunction effective on Nov. 1, which among other things prohibits Google from requiring the use of Google Play Billing in apps distributed on Google Play Store, Google filed a motion to stay the injunction, asserting that it is likely to succeed on its appeal to the Ninth Circuit U.S. Court of Appeals.
October 15, 2024
New York Times’ Auto Renewal Class Settlement Granted Final Approval

NEW YORK — A federal judge in New York granted final approval of a $2,375,000 nonreversionary cash settlement to be paid by The New York Times Co. to end a class complaint accusing the newspaper publisher of engaging in an illegal “automatic renewal” scheme on its website and mobile application for The New York Times newspaper, approved the award of attorney fees, costs and expenses of $791,666.66 and approved a class representative incentive award of $5,000; the approval followed additional settlement negotiations after the Second Circuit U.S. Court of Appeals reversed final approval of a settlement that included $1.65 million in cash plus “coupons.”
October 11, 2024
Apple Argues For Dismissal Of Government’s ‘Fishing Expedition’ Antitrust Suit

NEWARK, N.J. — Apple Inc. on Oct. 10 filed a brief supporting its dismissal motion in an antitrust suit against it by the U.S. Department of Justice (DOJ) and attorneys general from 20 states, alleging that Apple violated the Sherman Antitrust Act through its monopolization of the smartphone market.
October 11, 2024
11th Circuit Affirms Dismissal Of Short Squeeze Investor Suit Under N.Y. Law

ATLANTA — Saying in an unpublished per curiam opinion that retail investors “failed to show that [securities broker-dealer Apex Clearing Corp.] is liable for its actions under New York law,” an 11th Circuit U.S. Court of Appeals panel affirmed dismissal of a putative class case that was part of multidistrict litigation over the January 2021 halting of retail investor trading in certain meme stocks.
October 11, 2024
Private Equity Firms Amend Federal Complaint Against D&O, Cyber Liability Insurer

OMAHA, Neb.— Two private equity firms filed an amended complaint against their directors and officers and cyber liability insurer in a Nebraska federal court, seeking coverage for the alleged $2.8 million they lost when an imposter investor hacked a reserve account (Panorama Point Partners LLC, et al. v. Everest National Insurance Company, No. 24-393, D. Neb.).
October 10, 2024
5th Circuit Affirms ISP’s Copyright Infringement But Reverses Damages Award

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Oct. 9 affirmed a Texas federal jury’s finding that an internet service provider (ISP) was vicariously liable for copyright infringement by failing to prevent the piracy of plaintiff music labels’ copyrighted works, but the panel reversed a finding that the ISP was separately liable for the infringement of each of 1,403 songs.
October 10, 2024
Meta Asks High Court To Review Class Certification Ruling In Advertising Fraud Row

WASHINGTON, D.C. — Meta Platforms Inc. filed a petition for a writ of certiorari in the U.S. Supreme Court, seeking review of a Ninth Circuit U.S. Court of Appeals ruling affirming the certification of a damages class in a suit alleging fraudulent misrepresentation and concealment related to Meta’s online advertising services, asserting that review is necessary because “the Ninth Circuit applied a one-sided deference regime that stacks the deck in favor of class certification, in conflict with all other circuits” except the Second Circuit.
October 09, 2024
NCAA, Conferences’ NIL Agreement With Student-Athletes Preliminarily Approved

OAKLAND, Calif. — A federal judge in California granted preliminary approval to an amended settlement agreement in a lawsuit by college athletes who have accused the National Collegiate Athletic Association (NCAA) and five conferences of violating the Sherman Act by restricting compensation for the commercial use of their names, images and likenesses; the student-athletes report that the revisions to the NCAA rules will result in an estimated “$20 billion more flowing to student-athletes over the next ten years.”
October 09, 2024
California Brings Consumer Protection Suit Against TikTok For Harming Youth

SAN JOSE, Calif. — The California Attorney General’s Office on Oct. 8 filed a lawsuit in state court accusing the owners and operators of the TikTok social media app of violating California’s unfair competition law (UCL) and false advertising law (FAL) by intentionally targeting children, including those younger than 13, with addictive features and illegally collecting their data. Similar consumer protection suits were recently filed in more than a dozen other states.
October 09, 2024
2nd Circuit: Keyword Search Ads Based On Trademarks Not Infringing

NEW YORK — Affirming a New York federal judge’s entry of judgment on the pleadings in a trademark dispute between competing eyewear brands, the Second Circuit U.S. Circuit Court of Appeals on Oct. 8 said that “the mere act of purchasing a search engine keyword that is a competitor’s trademark does not alone, in the context of keyword search advertising, constitute trademark infringement.”
October 08, 2024
3-Year Injunction Issued Against Google In Antitrust Dispute With Epic Games

SAN FRANCISCO — A California federal judge on Oct. 7 issued a three-year permanent injunction against Google 10 months after a jury entered a verdict in favor or Epic Games Inc. in its antitrust dispute with Google LLC over the Android app market and the Google Play Store, finding that “[r]equiring Google to allow other app stores to be distributed through the Play Store for a discrete period is a modest step to correct the consequence of unlawfully preventing rival stores from reaching users and developers.”
October 07, 2024
Judge Grants Injunction: Calif. AI Election Law Acts As ‘Hammer Instead Of Scalpel’

SACRAMENTO, Calif. — Recently enacted California legislation imposing potential civil penalties for manipulated and deceptive artificial intelligence-generated election materials acts more like a “hammer instead of a scalpel” and likely violates constitutional speech protections, a federal judge in California said in enjoining the law.
October 07, 2024
U.S. Supreme Court Denies Cert In Trump Twitter Warrant 1st Amendment Dispute

WASHINGTON, D.C. — The U.S. Supreme Court on Oct. 7 denied certiorari to X Corp. (formerly known as Twitter Inc.) in its bid seeking of review whether a warrant obtained by the U.S. Department of Justice (DOJ) to search former President Donald J. Trump’s Twitter account and an accompanying nondisclosure order (NDO) violate the First Amendment to the U.S. Constitution and the Stored Communications Act (SCA).
October 04, 2024
Federal Judge Grants Attorney Fees To Defendant In FTC Deception Case

ATLANTA — A federal judge in Georgia granted partial attorney fees to one of two men the Federal Trade Commission alleged were involved in deceptively marketing and selling discount club memberships through online landing pages and telemarketing calls.
October 03, 2024
Judge Orders Further Briefing In OnlyFans Unfair Renewals Suit

SAN FRANCISCO — A California federal judge on Oct. 2 directed putative class plaintiffs accusing an adult entertainment website of violating California’s unfair competition law (UCL) by improperly charging them automatic renewal fees to file an amended complaint modifying their allegations regarding the defendants’ purposeful targeting of California, which the judge will consider before ruling on a motion to dismiss.
October 02, 2024
Judge: No Jurisdiction For Artist’s Class Copyright Claims Against Online Store

NEW YORK — A New York federal judge on Oct. 1 issued an opinion confirming an August “bottom-line” order dismissing a putative class action complaint brought by an artist alleging that an e-commerce company infringed on his copyrighted work and that of many other artists, holding that the New York federal court does not have personal jurisdiction based in part on customers’ locations.
October 02, 2024
Judge Tosses EPA Suit Against EBay Over CAA Violations, Cites ‘Sell’ Definition

BROOKLYN, N.Y. — A New York federal judge dismissed a suit filed by the U.S. Department of Justice on behalf of the U.S. Environmental Protection Agency, alleging that eBay Inc. is in violation of federal environmental laws by selling motor vehicle parts and accessories, pesticides and paint remover products that run afoul of pollution standards and are toxic, finding, in part, that actions by eBay do not comprise an offer to sell because eBay did not actually possess any of the items for sale.
October 02, 2024
Search Engine Users File 3rd Amended Complaint Against Google Over Search Monopoly

SAN JOSE, Calif. — After prior claims against Apple Inc. were dismissed with prejudice, a group of internet search engine users filed a third amended complaint in California federal court, asserting antitrust claims against Google LLC and related parties regarding allegations of general search services monopoly.
October 02, 2024
Epic Games Files Antitrust Suit Against Samsung, Google Over App Blocking Feature

SAN FRANCISCO — Epic Games Inc., the developer of the popular video game Fortnite, on Sept. 30 sued Samsung Electronics Co. Ltd. and Google LLC, alleging antitrust law and California unfair competition law (UCL) violations related to Google’s and Samsung’s alleged cooperation to reduce competition in the app distribution market by agreeing to Samsung’s use of the “auto blocker” default settings on its new phones that would block all user attempts to download and install Android apps from any source competing with the Google Play Store and the Samsung Galaxy Store.
September 30, 2024
Judge Says ‘No Choice’ But To Grant Judgment To Meta In Adult Entertainers Suit

SAN FRANCISCO — A California federal judge granted summary judgment to Meta Platforms Inc. in a putative class action filed by adult entertainment (AE) performers alleging tortious interference and unfair competition in blacklisting social media posts by most AE providers in favor of the OnlyFans AE platform, finding that despite Meta’s “questionable recordkeeping,” the plaintiffs failed to show that questions remain regarding issues of material fact.
September 27, 2024
Judgment Granted For Walmart In Soldier’s E-Commerce Publicity Act Suit

CHICAGO — An Illinois federal judge on Sept. 26 granted summary judgment to Walmart in a suit filed against it and other e-commerce retailers by a former member of the U.S. Army’s Airborne Infantry who alleged violations of the Illinois Right of Publicity Act and negligent infliction of emotional distress related to his post-traumatic stress disorder (PTSD) due to the defendants’ sale of posters with his combat photo, finding that the claims are time-barred due to the Publicity Act’s one-year statute of limitations.
September 27, 2024
Plaintiff Consents To Hacked Facebook Accounts Suit Being Heard By Magistrate

SAN FRANCISCO — A plaintiff bringing a putative class action against Meta Platforms Inc. in California federal court for breach of contract and violation of California’s unfair competition law (UCL) due to it allegedly allowing “hackers to abscond with hundreds of thousands of Facebook accounts” while barring hacked users from regaining access to their accounts consented to magistrate jurisdiction over the suit on Sept. 26.
September 27, 2024
Judge: Tattoo Artist Did Not Show How Game Makers’ Infringement Caused Damages

EAST ST. LOUIS, Ill. — An Illinois federal judge held that the developers of wrestling video games are not entitled to judgment as a matter of law after a jury determined that they are liable for copyright infringement of a tattoo artist’s work through their depictions in-game of a tattooed wrestling star, but they are entitled to judgment as a matter of law on damages because the artist presented no evidence at trial to support the award of damages.