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

Mealey's Cyber Tech & E-Commerce

April 16, 2024
Epic Games Proposes Injunction To Stop Google’s Monopolistic Practices

SAN FRANCISCO — Four months after a California federal jury found that Google Inc. engaged in anticompetitive conduct, tying and restraint of trade related to distribution of and payment for Android apps, plaintiff Epic Games Inc. filed a proposed permanent injunction in which it suggests that Google be prevented from engaging in various agreements, incentives and downloading and installation practices, among other things, for the purpose of making the relevant app markets competitive.
April 16, 2024
Massachusetts High Court Considers When A Party Is On Notice Of Online Misuse

BOSTON — Requiring a group of models to police even the most obscure portions of the internet for potential misappropriation of their images is “a little bit of a needle in a haystack problem,” the justices of the Massachusetts Supreme Judicial Court said during oral arguments, as they wrestled over a question of whether social media posts are “inherently unknowable” in the context of triggering the statute of limitations of the discovery rule for defamation and publicity rights claims.
April 15, 2024
Corrected Judgment Entered After $525M Awarded In Patent Case

CHICAGO — A federal judge in Illinois on April 12 entered a corrected judgment two days after jurors awarded a plaintiff $525 million in damages for infringement by Amazon Web Services Inc. of three information storage and retrieval patents.
April 12, 2024
23andMe Data Breach Suits Centralized In Northern California MDL

SAN FRANCISCO — The Judicial Panel on Multidistrict Litigation (JPMDL) on April 11 granted a request by genetic testing company 23andMe to consolidate 39 pending lawsuits against it in the U.S. District Court for the Northern District of California, all of which relate to a data breach in which ancestral records for roughly 6.9 million customers were hacked and allegedly sold online.
April 10, 2024
Tribes Sue Social Media Platforms Over Teen Mental Health Crisis

LOS ANGELES — In parallel complaints filed April 9 in the California Superior Court, two Native American tribes bring claims against the operators of Facebook, Instagram, Snapchat, TikTok and YouTube for creating a mental health crisis among their adolescents by designing their social media platforms in such a way that they are addictive, especially to younger users, which they claim leads to a plethora of emotional and psychological problems.
April 09, 2024
After Adverse Federal Verdict, Instagram ‘Influencer’ Cop Files State Complaint

LOS ANGELES — The same day a California federal jury found that a Los Angeles Police Department (LAPD) officer did not experience adverse employment action in retaliation to her social media postings that were deemed “inappropriate” by the chief of police, the officer filed a similar gender discrimination complaint in California state court.
April 08, 2024
Insurer Moves To Reargue Dismissal Of Breach Of Contract Claims In Subrogation Suit

WILMINGTON, Del. — An insurer asked a Delaware court if it can reargue the court’s dismissal of its breach of contract claims for pleading deficiencies and file an amended complaint before dismissal with prejudice is entered on the breach of contract claims in its subrogation lawsuit seeking recovery from an application service provider for the amount paid to nonprofit insureds for investigative and remediation steps arising from a ransomware attack.
April 04, 2024
California Federal Judge Offers Glimpse At Hurdles In TikTok IP Row

SAN FRANCISCO — In advance of a planned April 5 hearing on a motion to dismiss copyright infringement and false advertising claims leveled against TikTok Inc. and others, a federal judge in California has directed the video sharing app to be prepared to defend its position that the registration requirement in federal copyright law extends to copyrights registered abroad.
April 03, 2024
9th Circuit Denies Remand Of Terror-Aiding Suits Against Social Media Firms

SAN FRANCISCO — Citing the U.S. Supreme Court’s recent ruling in Twitter Inc. v. Taamneh, 143 S. Ct. 1206 (2023), a Ninth Circuit U.S. Court of Appeals panel on April 2 denied motions by the family members of terror victims in three suits to remand their cases for the purpose of filing amended complaints, concluding that amendment would be futile because the appellants failed to allege a necessary component in their claims that Twitter Inc., Facebook Inc. and Google LLC violated the Antiterrorism Act (ATA) by permitting terrorists to use their social networks for nefarious reasons.
April 01, 2024
Delaware Judge Tosses Insurers’ Subrogation Suits Arising From Ransomware Attack

WILMINGTON, Del. — A Delaware judge dismissed insurers’ subrogation lawsuits seeking recovery from an application service provider for the amount they paid to their nonprofit insureds for investigative and remediation steps arising from a ransomware attack, finding that the fact that the data breach occurred and the nonprofits incurred expenses alone is not sufficient to state a claim under the policies.
April 01, 2024
9th Circuit Panel Refuses To Rehear Ruling In $40M Commercial Crime Coverage Suit

PASADENA, Calif. — A panel of the Ninth Circuit U.S. Court of Appeals on March 29 voted unanimously to deny insurers’ petition for panel rehearing challenging its reversal of a lower federal court’s dismissal of a financial services company insured’s claim for loss under its commercial crime insurance policy’s “Computer And Funds Transfer Fraud Insuring Agreement” and its claim for tortious breach of the implied covenant of good faith and fair dealing, standing by its finding that the authorized submission of fraudulent electronic data into the insured’s computer system can arguably be described as “fraudulent entry” to trigger coverage.
March 28, 2024
Judge Largely Denies Coinbase’s Bid For Judgment On Pleadings In SEC Enforcement

NEW YORK — A federal judge in New York on March 27 issued a split ruling mostly denying Coinbase Inc.’s motion for judgment on the pleadings because the Securities and Exchange Commission adequately alleged that the company engaged in the unregistered sale of securities but also finding that the commission had not substantiated its claim that Coinbase acts as an unregistered broker.
March 28, 2024
Ankle Monitor Is Potentially A Computer Triggering Professional Liability Coverage

CHICAGO — An Illinois appeals panel held March 27 that an ankle monitor, at the very least, is potentially computer hardware triggering professional services liability coverage, reversing a lower court’s summary judgment ruling in favor of an insurer in its declaratory judgment lawsuit disputing coverage for an underlying personal injury lawsuit.
March 27, 2024
Judge Allows UCL, Negligence Claims Against Roblox In Mothers’ ‘Gambling’ Suit

SAN FRANCISCO — A California federal judge on March 26 granted in part and denied in part a motion by Roblox Corp. to dismiss a putative class action brought against it by two mothers who accuse it of being liable for their minor children’s engagement in illegal gambling games on the Roblox platform.
March 27, 2024
Spyware Suit Judge Partly Denies Issuing Letter Rogatory On Canadian Lab

OAKLAND, Calif. — An Israeli spyware firm that is fending off computer fraud and trespass allegations by WhatsApp Inc. saw its motion to issue a letter rogatory on a third-party Canadian watchdog lab partly denied March 26 by a California federal judge who deemed some of the information sought to be duplicative of discovery already received from the plaintiff.
March 26, 2024
Panel Says Sex Toy Maker’s ‘Inconspicuous’ Arbitration Agreement Not Binding

LOS ANGELES — A California appellate panel on March 25 affirmed a trial court’s denial of a sex toy maker’s motion to compel arbitration of a putative class action filed against it by a consumer who claimed that the company deceptively marketed one of its products in violation of California’s unfair competition law (UCL), finding that the company’s “browsewrap” arbitration agreement could be viewed only by clicking a “tiny, inconspicuous link.”
March 25, 2024
Publishers Ask 2nd Circuit To Find Internet Archive’s EBook Lending Infringing

NEW YORK — The “wholly manufactured” practice of “controlled digital lending” in which Internet Archive (IA) digitizes books and lends them online “is radical and unlawful,” book publishers tell the Second Circuit U.S. Court of Appeals in their appellee brief, seeking affirmance of a trial court’s finding that the practice infringed their copyrights.
March 22, 2024
Meta, Spotify Back Epic’s Motion To Enforce Injunction In App Store Antitrust Row

OAKLAND, Calif. — Agreeing with plaintiff Epic Games Inc. that Apple Inc. has not complied with an injunction requiring it to permit app developers to inform users of methods of making in-app purchases (IAPs) outside of the App Store, Meta Platforms Inc., Spotify USA Inc. and others moved to file amicus curiae briefs in California federal court supporting Epic’s motion to enforce the injunction.
March 21, 2024
DOJ, States Sue Apple For Anticompetitive, Exclusionary Conduct, In Apps, Phones

NEWARK, N.J. — Apple Inc. was hit with allegations of monopolization under the Sherman Act on March 21, as the U.S. Department of Justice (DOJ) and the attorneys general for 16 states, on behalf of the United States and the corresponding states, filed a complaint in New Jersey federal court accusing the tech giant of years of “respond[ing] to competitive threats . . . by making it harder or more expensive for its users and developers to leave than by making it more attractive for them to stay” while “wrap[ping] itself in a cloak of privacy, security, and consumer preferences to justify its anticompetitive conduct.”
March 20, 2024
4th Circuit Stands By Contributory Copyright Liability Findings For ISP

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on March 19 denied dual petitions for rehearing or rehearing en banc, leaving in place a panel decision one month earlier that vacated a $1 billion award for vicarious copyright infringement by an internet service provider (ISP) while also upholding findings that the ISP is liable for contributory infringement.
March 19, 2024
Coronavirus Tracing App Creator Again Denied Writ Of Injunction By High Court

WASHINGTON, D.C. — A month and a half after U.S. Supreme Court Justice Elena Kagan denied its application for a writ of injunction, a software company on March 18 saw its application to enjoin Apple Inc.’s purported “censorship of software” rejected a second time, this time by the entire court.
March 18, 2024
High Court Hears Arguments On State Action, Government Coercion Of Social Media

WASHINGTON, D.C. — In oral arguments on March 18 over claims that the federal government violated the First Amendment to the U.S. Constitution by purportedly coercing social media platforms into removing disfavored speech, the U.S. Supreme Court justices sought clarification on such issues as state action, traceability and redressability as they grapple with the respondents’ standing and the scope of an injunction against the government.
March 15, 2024
Judge OKs Arbitral Review Of Esports Players’ $120M Monopoly Claims

LOS ANGELES — A California federal judge dismissed a putative class action brought by two professional players of the video game “Call of Duty” (CoD) and one affiliated business entity against developer Activision Blizzard Inc. after the parties filed a stipulation agreeing that an international arbitral tribunal will decide the arbitrability of claims that Activision monopolized CoD-related esports.
March 15, 2024
High Court: State Action On Social Media Requires Exercise Of Actual Authority

WASHINGTON, D.C. — Vacating and remanding two lawsuits in which public officials were accused of violating the First Amendment to the U.S. Constitution by blocking naysayers on social media, the U.S. Supreme Court on March 15 established a two-step test for determining whether such activity by an official constitutes state action, making it susceptible to legal action under U.S. Code Title 42 Section 1983, or is merely their own private, protected speech.
March 15, 2024
Snap Waives Response To Assault Victim’s Certiorari Petition Over CDA Immunity

WASHINGTON, D.C. — Snap Inc., owner of the popular Snapchat social media app, declined to file a response to a petition for certiorari in which a minor sexual assault victim asks the U.S. Supreme Court to decide the scope of immunity from liability to which service providers are entitled under Section 230 of the Communications Decency Act (CDA), related to the minor having been groomed by an adult through Snapchat.