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

Mealey's Cyber Tech & E-Commerce

September 13, 2024
Judge Grants Injunction In 1st Amendment Row Over Utah Social Media Moderation Law

SALT LAKE CITY — In a decision addressing two cases challenging Utah state legislation to moderate social media content for minors, a Utah federal judge in the first case granted a preliminary injunction to an internet trade association company seeking to prevent enforcement of the legislation, finding that the trade association is likely to succeed on the merits of its claim that the law violates the First and 14th amendments to the U.S. Constitution.
September 13, 2024
Utah Judge Rules For Insurer In Coverage Dispute Over Ill. BIPA Violation Claims

SALT LAKE CITY — A Utah judge entered judgment in favor of a general liability insurer in its declaratory judgment lawsuit disputing coverage for an underlying action alleging its insured violated the Illinois Biometric Information Privacy Act (BIPA), finding that various policy exclusions bar coverage.
September 11, 2024
BIPA Violation Suit Did Not Trigger Coverage, Illinois Majority Rules In Reversal

CHICAGO — A majority of an Illinois appeals court panel on Sept. 10 held that an underlying lawsuit alleging that an insured violated the Biometric Information Privacy Act did not trigger coverage under its “Cyber, Data Risk, and Media Insurance” policies, reversing the lower court’s summary judgment ruling in favor of the insured and remanding for the court to enter summary judgment in favor of the insurer on the issue of its duty to defend.
September 11, 2024
Massachusetts High Court Affirms Snapchat Surveillance Case Dismissal

BOSTON — The Massachusetts Supreme Judicial Court affirmed dismissal of a case that the commonwealth brought against a man accused of unlawful firearm possession and related crimes after the man tried for three years to get the commonwealth to produce discovery related to the Boston Police Department’s undercover monitoring of Snapchat social media accounts, finding that “discovery was relevant and material” and that the judge’s dismissal was not an abuse of discretion because the department and commonwealth did not “make any attempt to comply” with the judge’s discovery order.
September 11, 2024
High Court Extends Time To Respond To Stay Request, Cert Petition In Broadband Row

WASHINGTON, D.C. — In a docket-only order, U.S. Supreme Court Justice Sonia Sotomayor granted a request filed by New York Attorney General Letitia James for an extension of time to respond to the New York State Telecommunications Association and other broadband providers’ petition for a writ of certiorari and application to stay the Second Circuit U.S. Court of Appeals’ ruling reversing a district court’s judgment that granted a permanent injunction barring the enforcement of New York’s Affordable Broadband Act (ABA) and found that the Federal Communications Act of 1934 preempts state regulation of broadband services.
September 10, 2024
Hunter Biden Wins Attorney Fees From Laptop Files Poster

SAN FRANCISCO — A California federal judge on Sept. 9 granted Hunter Biden’s motion for attorney fees against a conservative activist and his organization, whom Biden accuses of violating computer fraud laws and California’s unfair competition law (UCL) by posting data from his private laptop online, finding that Biden is entitled to fees incurred defending against a frivolous motion to strike pursuant to California’s anti-Strategic Lawsuit Against Public Participation (SLAPP) law.
September 09, 2024
2nd Circuit: Internet Archive’s Book Lending Infringed On Copyrights

NEW YORK — The Internet Archive (IA) did not have the right to engage in a process it called “controlled digital lending” in which it digitized books and loaned them to individuals online, a panel of the Second Circuit U.S. Court of Appeals held, affirming a New York federal judge’s grant of summary judgment in favor of several publishers.
September 09, 2024
TikTok Not Immune From Its Own First-Party Expression In Curating, Promoting Videos

PHILADELPHIA — A panel of the Third Circuit U.S. Court of Appeals reversed in part and vacated in part the judgment of a Pennsylvania trial court dismissing a lawsuit by the mother of a 10-year-old girl who accidentally asphyxiated herself after watching a video encouraging similar behavior curated by an online video service and featured on the girl’s “For You Page,” ruling that the curation and promotion of videos is first-party expressive conduct, not third-party conduct for which the service was immune from liability under the Communications Decency Act (CDA).
September 09, 2024
Care Gig Platform, FTC Reach $8.5M Agreement In Case Over Wages, Cancellations

AUSTIN, Texas — Care.com, a child and older adult care gig platform, will pay $8.5 million to end claims by the Federal Trade Commission that it has systematically deceived caregivers about wages available for potential jobs and at the same time failed to give families looking for care an easy way to cancel their paid memberships.
September 06, 2024
Judge ‘Cautions’ WhatsApp, Denies Reconsideration To Spyware Firm In Fraud Dispute

OAKLAND, Calif. — A California federal judge on Sept. 5 denied a spyware firm’s motion for reconsideration of the judge’s order denying as moot the firm’s request to compel WhatsApp Inc.’s production of a privilege log in WhatsApp’s suit against the firm related to its alleged computer fraud because WhatsApp has now produced the log but “caution[ed]” WhatsApp that what it calls ‘“oversights’ may be grounds for a different type of sanction.”
September 05, 2024
Judge Again Rejects Gaming Company’s Bid To Arbitrate False Advertising Claims

SAN FRANCISCO — After soliciting another round of supplemental briefing on new state law precedent, a California federal judge on Sept. 4 again denied a gaming company and its co-founders’ motion to compel arbitration of putative class claims against them for violating California’s unfair competition law (UCL) by falsely advertising their mobile games as offering live competition, reiterating that the arbitration agreement is unconscionable and unenforceable.
September 05, 2024
9th Circuit Reverses Injunction Denial In X Corp’s Bid To Stop Bill Enforcement

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Sept. 4 reversed and remanded a district court order denying a motion for a preliminary injunction filed by X Corp., formerly known as Twitter Inc., to enjoin the enforcement of California legislation requiring social media companies to post semiannual reports detailing their terms of service and content moderation policies, finding that a preliminary injunction is merited because X Corp is likely to succeed on the merits of its claim that the legislation’s reporting requirement violates the First Amendment of the U.S. Constitution.
September 05, 2024
Spyware Firm Seeks Reconsideration Of Denial As To WhatsApp’s Privilege Log

OAKLAND, Calif. — Pursuant to a California federal judge’s order granting its motion for leave, a spyware firm filed a motion for reconsideration of the judge’s order denying as moot the firm’s request to compel WhatsApp Inc.’s production of a privilege log, asserting that WhatsApp falsely represented that it would produce the privilege log in WhatsApp’s suit against the firm related to its alleged computer fraud.
September 04, 2024
Judge Denies Motion To Deny Class Certification In Moderator Suit Against TikTok

SAN FRANCISCO — Stating that “the Court is confused as to why this motion was filed at all,” a California federal judge denied a motion to deny class certification by TikTok Inc. and its parent company in a putative class action regarding the defendants’ alleged negligence in failing to protect content moderators from harm, finding that the defendants failed to show why excluding from the class those who signed arbitration agreements “should defeat class certification.”
September 03, 2024
Judge: Investors’ Claims Against TikTok’s Content Moderator Survive Dismissal

MIAMI — A federal judge in Florida denied a motion from a French telecommunications company that provided content moderation for TikTok Inc. to dismiss a putative class complaint brought against them by investors who claim that the company made false statements to investors about its use of child sexual abuse material (CSAM) images to train moderators, holding that the investors adequately substantiated falsity and scienter to survive dismissal.
August 29, 2024
9th Circuit Affirms Arbitrator Award In Copyright Fight Over Video Game Cheats

SAN FRANCISCO — A Washington federal judge did not err by approving an arbitrator’s award of nearly $4.4 million against the creator of a video game cheating software on copyright claims brought by the developer of a game, a panel of the Ninth Circuit U.S. Court of Appeals held, finding that the arbitrator committed no errors in litigating the case.
August 29, 2024
Yelp Files Antitrust Suit Against Google, Alleges Online Search ‘Monopoly Power’

SAN FRANCISCO — Internet search platform Yelp Inc. on Aug. 28 sued multinational search engine tech company Google LLC in a California federal court, asserting antitrust violations pursuant to the Sherman Act regarding Google’s alleged “numerous anti-competitive practices, including stealing information from Yelp’s website and passing it off as Google’s own.”
August 29, 2024
Judge Dismisses Advertiser’s ‘Click-Through Fraud’ Claims Against Reddit

SAN FRANCISCO — A California federal judge granted Reddit Inc.’s motion to dismiss a tech company’s putative class action accusing it of violating California’s unfair competition law (UCL) and of breach of contract by allegedly charging fraudulent fees per click on digital advertisements, finding that the plaintiff lacks standing but granting it leave to amend.
August 28, 2024
Scheduling Order Issued In Remanded Row Over Florida Social Media Moderation Law

TALLAHASSEE, Fla. — In a case on remand from the 11th Circuit U.S. Court of Appeals, a Florida federal judge issued a scheduling order in the case previously stayed pending a challenge ultimately decided by the U.S. Supreme Court, which held that suits over the social media content laws in Florida and Texas were not properly before the court because neither the 11th Circuit nor the Fifth Circuit U.S. Court of Appeals, respectively, conducted the necessary analysis for a facial challenge to the statutes under the First Amendment to the U.S. Constitution.
August 28, 2024
Epic Games Agrees To Pay Nearly $400K To Google Over Antitrust Counterclaim

SAN FRANCISCO — Eight 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, Epic agreed to pay $398,931.23 to settle Google’s counterclaim against it for breach of Google’s Developer Distribution Agreement (DDA) in violation of the Sherman Act, stating that Epic will “forgo adjudication” of its defense that the DDA provisions Epic is accused of violating were found unlawful during a jury trial to avoid further delay of the final judgment in the case.
August 27, 2024
5th Circuit Vacates Ruling In Social Media Standing Suit On Remand From High Court

NEW ORLEANS — In a case on remand from the U.S. Supreme Court that held that plaintiffs who sued to stop the federal government from purportedly coercing social media platforms into censoring disfavored speech do not have standing under Article III of the U.S. Constitution to seek injunctive relief against the governmental defendants, the Fifth Circuit U.S. Court of Appeals on Aug. 26 vacated and remanded a district court’s preliminary injunction to stop certain government officials from censoring speech on social media platforms.
August 27, 2024
U.S. Intervenes In FCA Suit Against Georgia Tech Over Cybersecurity Fraud

ATLANTA — The U.S. government filed a complaint-in-intervention against Georgia Tech, asserting that it violated the False Claims Act (FCA) and federal common law by falsifying that its labs, which had contracts with the U.S. Department of Defense (DoD), were in compliance with DoD cybersecurity requirements.
August 26, 2024
Document Production Motion Denied In Suit Over Amazon ‘Tricking’ Prime Consumers

SEATTLE — A Washington federal judge denied a motion to compel production of documents filed by Amazon.com Inc. and its officers, who were sued by the Federal Trade Commission (FTC) over the defendants allegedly “tricking” customers into enrolling in the Amazon Prime service, finding in part that the documents sought, including internal FTC communications, are not relevant to the FTC’s interpretation of a federal law the defendants are accused of violating.
August 26, 2024
Federal Judge: Artist’s Trademark, Copyright Claims Against Amazon Largely Survive

RIVERSIDE, Calif. — A federal judge in California partly denied a motion from Amazon.com Inc. to dismiss a complaint brought against it by an artist, holding that the artist adequately established that the defendant infringed upon his trademarks by selling counterfeited works, but noted that the artist conceded that he failed to establish other elements of his claims.
August 23, 2024
Justice Department Sues Rental Market Software Company Over Antitrust Violations

GREENSBORO, N.C. — The U.S. Department of Justice and attorneys general of eight states on Aug. 23 filed an antitrust suit against RealPage Inc., a commercial revenue management software company, alleging that RealPage uses nonpublic information obtained from landlords and runs the information through its algorithmic software to align pricing, thereby impeding the free market process.