Gabrielli v. Insider, Inc.

CourtDistrict Court, S.D. New York
DecidedFebruary 18, 2025
Docket1:24-cv-01566
StatusUnknown

This text of Gabrielli v. Insider, Inc. (Gabrielli v. Insider, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gabrielli v. Insider, Inc., (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK JONATHAN GABRIELLI, individually and on behalf of all others similarly situated, Plaintiff, OPINION & ORDER – against – 24-cv-01566 (ER) INSIDER, INC., Defendant. RAMOS, D.J.: Jonathan Gabrielli brings suit against Insider, Inc. (“Insider”), alleging that Insider violated California’s Invasion of Privacy Act (“CIPA”) by installing software on his computer that shared his IP address with a third-party. Doc 19 ¶ 2–4; California Penal Code § 638.51. Before the Court is Insider’s motion to dismiss for lack of subject matter jurisdiction and failure to state a claim upon which relief can be granted. Doc. 23. For the reasons discussed below, the motion is GRANTED. I. BACKGROUND A. Factual Background Parties Insider is an online business news site that allows users to access published content on its website, https://businessinsider.com (the “Website”). Doc 19 ¶ 1. Gabrielli is a California resident. Id. ¶ 6. Insider’s Alleged IP Address Collection Gabrielli alleges that he visited Insider’s Website on his personal computer multiple times between March 2020 and December 2023. Id. ¶ 57. In order for Gabrielli and other users to access Insider’s Website, the user must send an “HTTP request” to Insider’s Website. Id. ¶ 20. In response to the request, Insider’s Website server sends an “HTTP response” back to the user’s browser which installs code that allows the Website content to be displayed on the user’s computer. Id. ¶ 21. Gabrielli alleges that in addition, the HTTP response from Insider installed a third-party tracker operated by Audiencerate (the “Tracker”) on his browser. Id. ¶ 22. �ird-party trackers like the one alleged here are sometimes installed or integrated into a website’s code for the purpose of collecting user data. Id. ¶ 43. Gabrielli alleges that he never consented to Insider’s installation or use of the Tracker. Id. ¶ 49. Gabrielli alleges that after visiting Insider’s Website, the Tracker sent his IP address to Audiencerate. Id. ¶ 75. Gabrielli does not allege that the Tacker captured any information other than his IP address. Id. ¶ 76. An IP address is a unique identifier for a device that is expressed as four sets of numbers separated by periods. Id ¶ 23. �e first two sets of numbers indicate the network the device is connected to, and the second two sets of numbers identify the specific device. Id. By identifying the network and device from which Gabrielli’s internet request is sent, the IP address allows his device to communicate with Insider’s Website server. Id. ¶ 24. Although Insider needs Gabrielli’s IP address to communicate the Website information to him, Insider does not need to install the Tracker to do so. �rough an IP address, the specific location of the device, including the state, city, and zip code, can be determined. Id. ¶ 25. Gabrielli alleges that Insider uses the Tracker to collect the IP addresses of visitors to the Website which Audiencerate then provides to Insider and other clients. Id. ¶ 48. Specifically, Gabrielli alleges that the geographic information gathered by Audiencerate is used to target customers in specific geographic areas for more effective advertising and marketing. Id. ¶¶ 27, 59. For example, “businesses who are trying to reach college-aged demographics can target devices on college campuses by sending advertisements to IP addresses associated with college-wide Wi-Fis.” Id. ¶ 28. Gabrielli alleges that Insider’s installation of the Tracker that sent his IP address to Audiencerate is a violation of the CIPA, California Penal Code § 638.51(a). Doc. 19 ¶ 4. Section 638.51(a) prohibits “a person” from “install[ing] or us[ing] a pen register … without first obtaining a court order.” California Penal Code § 638.51 (“Section 638.51”). A pen register is “a device or process that records or decodes dialing, routing, addressing, or signaling information transmitted by an instrument or facility from which a wire or electronic communication is transmitted, but not the contents of a communication.” California Penal Code § 638.50(b); Doc. 29 at 16. Gabrielli also alleges that Insider’s collection of his IP address in violation of the CIPA constitutes an invasion of privacy. Doc. 19 ¶ 50. B. Procedural History Gabrielli filed the instant suit on February 29, 2024, Doc. 1, and filed an amended complaint on June 11, 2024. Doc. 19. On August 1, 2024, Insider filed its motion to dismiss for lack of subject matter jurisdiction and failure to state a claim pursuant to Rules 12(b)(1) and 12(b)(6). Doc. 23. II. LEGAL STANDARDS A. Rule 12(b)(1) Pursuant to Rule 12(b)(1), a court must dismiss an action for lack of subject matter jurisdiction if it “lacks the statutory or constitutional power to adjudicate it.” Makarova v. United States, 201 F.3d 110, 113 (2d Cir. 2000) (citing Fed. R. Civ. P. 12(b)(1)). In 12(b)(1) motions, the party who is claiming subject matter jurisdiction bears the burden of proving it exists by a preponderance of the evidence. Makarova, 201 F.3d at 113. To resolve 12(b)(1) disputes over subject matter jurisdiction, a court may reference evidence outside of the pleadings to make a determination. Gonzalez v. Inn on the Hudson LLC, No. 20-cv-9196 (ER), 2022 WL 974384, at *2 (S.D.N.Y. Mar. 30, 2022). B. Rule 12(b)(6) When considering a motion to dismiss pursuant to Rule 12(b)(6), a court accepts all factual allegations in the complaint as true and draws all reasonable inferences in the plaintiff’s favor. Koch v. Christie’s International PLC, 699 F.3d 141, 145 (2d Cir. 2012). But “[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Iqbal, 556 U.S. at 678 (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A claim is facially plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. �is standard “is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Id. (quoting Twombly, 550 U.S. at 556). To state a plausible claim, the plaintiff must “ ‘raise a reasonable expectation that discovery will reveal evidence’ of the wrongdoing alleged, ‘even if it strikes a savvy judge that actual proof of those facts is improbable.’ ” Citizens United v. Schneiderman, 882 F.3d 374, 380 (2d Cir. 2018) (quoting Twombly, 550 U.S. at 556). If the plaintiff has not “nudged [the] claims across the line from conceivable to plausible, [the] complaint must be dismissed.” Twombly, 550 U.S. at 570. III. DISCUSSION Insider moves to dismiss the action for lack of subject matter jurisdiction pursuant to Rule 12(b)(1), and failure to state a claim pursuant to Rule 12(b)(6). When a defendant moves to dismiss a case pursuant to rules 12(b)(1) and 12(b)(6), the Court must consider the 12(b)(1) motion first before it makes a decision on the merits. See Baldessarre v. Monroe-Woodbury Century School Dist., 820 F. Supp. 2d 490, 499 (S.D.N.Y. 2011), aff’d sub nom. Baldessarre ex rel. Baldessarre v.

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