AdTrader, Inc. v. Google LLC

District Court, N.D. California·Decided November 1, 2022·No. 5:17-cv-07082·Unknown

Opinion

ADTRADER, INC., et al., Case No. 17-cv-07082-BLF

Plaintiffs, ORDER GRANTING MOTION FOR v. FINAL APPROVAL OF SETTLEMENT AND GRANTING MOTION FOR GOOGLE LLC, ATTORNEY FEES, EXPENSES, AND SERVICE AWARD Defendant. [Re: ECF Nos. 401, 399]

Before the Court are (1) Plaintiffs’ Motion for Final Approval of Settlement (“Final Approval Motion”) and (2) Plaintiffs’ Motion for Attorney Fees, Expenses, and Service Award (“Fee Motion”). See ECF Nos. 401, 399. Seventeen opt-outs have been filed in addition to those who opted out during the first notice period, and there is one objector. The Court held a hearing on the motions on October 27, 2022. For the reasons stated on the record and explained below, the Court GRANTS both motions. I. BACKGROUND Plaintiffs filed a proposed class action on December 13, 2017, alleging that Google wrongfully failed to provide refunds or credits to advertisers who used what was then known as its DoubleClick Bid Manager (“DBM”) platform (now “Display & Video 360”) for invalid activity that Google detected. ECF No. 1. Plaintiffs subsequently extended their claims to include advertisers who used Google’s AdWords platform as well, among others. ECF No. 1, 29, 72 (“SAC”). Google’s DoubleClick Ad Exchange (“AdX”) is a Google-owned and operated advertising exchange serving both advertisers and website publishers. See SAC ¶¶ 23-28. Website publishers using AdX can monetize their inventory and be matched via an auction format with online advertisers looking to bid on that inventory. See id. Google pays publishers a portion of the revenues Google receives for ads displayed on the publisher’s websites. ECF No. 154 (“Answer”) ¶ 23. AdWords is a service that allows advertisers to run both display and search advertising campaigns. AdWords advertisers could buy inventory from AdX publishers under the AdWords default settings. Answer ¶ 27. Plaintiff SCB was an AdWords advertiser. Id. ¶ 57. Google states it attempts to detect invalid ad traffic (“IVT”) and issue credits or refunds to advertisers for such traffic. Id. ¶¶ 41-45. On behalf of itself and the AdWords Class, Plaintiff SCB alleged that Google breached the AdWords Agreement and violated California’s False Advertising Law (“FAL”) and Unfair Competition Law (“UCL”) by failing to fully refund or credit advertisers for invalid ad traffic even though it had contemporaneously withheld payment to AdX publishers for that same traffic. SAC ¶¶ 157-248. Plaintiffs filed the operative Second Amended Complaint on August 13, 2018, as modified by the Court’s order granting in part Google’s motion to dismiss the same. SAC; ECF No. 131. On March 13, 2020, the Court certified under Rule 23(b)(3) Plaintiff’s proposed AdWords Class. ECF No. 278. The Court appointed SCB as class representative and Gaw | Poe LLP as class counsel. Id. Following the Court’s ruling on class certification, Plaintiffs filed an unopposed motion for approval of notice to the litigation class, which the Court granted. ECF Nos. 305, 308. The Court approved Angeion Group as the Administrator. ECF No. 308. Pursuant to the plan, Angeion sent notice to the class, consisting of 651,294 emails and 141,318 mailed postcard notices, which resulted in 34 opt-outs. See ECF No. 346-1. On February 25, 2022, after intensive written and oral discovery and with cross-motions for summary judgment pending, the Parties attended a successful mediation session with the Honorable Jeremy Fogel, Ret. See ECF No. 378. As detailed in the Settlement, the Settlement provides for a non-reversionary sum of $7 million to satisfy these claims, payable on a claims-made basis, under which each claimant with a valid claim will receive a proportional share of the Net Settlement Fund based on its AdWords advertising spend on AdX publishers’ webpages during the relevant limitations period as a percentage of the total such spend for all claimants with valid claims. ECF No. 386-1 On April 28, 2022, SCB filed its Motion for Preliminary Approval, ECF No. 385, which the Court granted on May 13, 2022, ECF No. 393 (“Preliminary Approval Order”). In its Order, the Court acknowledged the benefits of the Settlement and found, on a preliminary basis, that the Settlement “substantially fulfills the purposes and objectives of the class action, and provides substantial relief to the AdWords Class without the risks, burdens, costs, or delay associated with continued litigation, trial, and/or appeal.” Preliminary Approval Order ¶ 5. The Settlement Administrator provided the Court-approved Notice to the AdWords Class and provided notice to regulators. ECF No. 397. The Settlement Administrator likewise updated the class website following preliminary approval, to include updated Settlement Notices, a claim form, an opt-out form, answers to frequently asked questions, a list of important deadlines, and important case documents. ECF No. 401-1 (“Weisbrot Decl.”) ¶¶ 17-20. On June 17, 2022, the Settlement Administrator caused Email Notice to be sent to the 870,509 advertisers for whom e- mail addresses were available, and caused Postcard Notice to be mailed to the 191,154 advertisers for whom only physical addresses were available or for whom emails were returned as undeliverable. Id. ¶¶ 12-13. In total, Direct Notice was achieved with respect to approximately 95.6% of the AdWords Class. Id. ¶ 16. The Settlement Administrator received 84,335 claims. Id. ¶ 23. 4,838 of those (covering 8,503 separate Customer IDs) were determined to be Valid Claims. Id. The great majority of the claims that were initially rejected were submitted by individuals who were either not on the class list, or had not submitted a valid email address or Customer ID. Id. ¶¶ 24-25. For the rejected claims, the Administrator has followed up with an “initial claim deficiency notice” that affords such individuals 30 days to seek to cure their claim. Id. ¶ 26. The Administrator also received 17 exclusions and one objection. Id. ¶¶ 29, 31. Plaintiffs moved for attorneys’ fees, expenses, and service award on July 15, 2022. See Fee Motion. Plaintiffs moved for final approval on October 13, 2022. See Final Approval Motion. Plaintiffs seeks (1) final approval of the proposed class action settlement; (2) approval of Class Counsel’s application for $2,310,000 in attorneys’ fees and $831,186.02 in expenses; and (3) approval of SCB’s request for a service award of $10,000. See Final Approval Motion at 1-2; II. MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT A. Rule 23 Certification Requirements In order to grant final approval of the class action settlement, the Court must determine that (a) the class meets the requirements for certification under Federal Rule of Civil Procedure 23, and (b) the settlement reached on behalf of the class is fair, reasonable, and adequate. See Staton v. Boeing Co., 327 F.3d 938, 952 (9th Cir. 2003). 1. The Class Meets the Requirements for Certification Under Rule 23 A class action is maintainable only if it meets the four requirements of Rule 23(a): (1) the class is so numerous that joinder of all members is impracticable;

(2) there are questions of law or fact common to the class;

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AdTrader, Inc. v. Google LLC, (N.D. Cal. 2022).

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