Garon v. Keleops USA, Inc.

CourtDistrict Court, N.D. California
DecidedSeptember 2, 2025
Docket4:25-cv-02124
StatusUnknown

This text of Garon v. Keleops USA, Inc. (Garon v. Keleops USA, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garon v. Keleops USA, Inc., (N.D. Cal. 2025).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 JEFFREY GARON, Case No. 25-cv-02124-DMR

8 Plaintiff, ORDER DENYING DEFENDANT’S 9 v. MOTION TO DISMISS

10 KELEOPS USA, INC., Re: Dkt. No. 16 11 Defendant.

12 13 Plaintiff Jeffrey Garon (“Garon” or “Plaintiff”), individually and on behalf of all others 14 similarly situated, brings this putative class action against Keleops USA, Inc. (“Keleops” or 15 “Defendant”), asserting a single claim under the California Invasion of Privacy Act (“CIPA”), Cal. 16 Penal Code § 638.51(a). Keleops now moves to dismiss the First Amended Complaint (“FAC”) in 17 its entirety pursuant to Federal Rule of Civil Procedure 12(b)(6). 1 [Docket No. 16 (Mot.).] Garon 18 filed an opposition (Docket No. 22 (Opp’n)), and Keleops filed a reply (Docket No. 23 (Reply)). 19 The parties also filed a joint stipulation for leave for Keleops to file a sur-reply. [Docket No. 23 20 (stip.); Docket No. 23-1 (proposed sur-reply).] 21 This matter is suitable for determination without oral argument. Civ. L.R. 7-1(b). For the 22 reasons stated below, the motion to dismiss is denied. 23 24 25 26 1 Defendant filed the Notice of Removal and FAC as a single docket entry. [See Docket No. 1.] 27 Citations to the Notice of Removal refer to ECF pages 1-6, and citations to the FAC refer to ECF 1 I. BACKGROUND 2 A. Factual Allegations2 3 Garon alleges that Keleops owns and operates the website https://gizmodo.com (the 4 “Website”).3 FAC ¶ 1. When users visit the Website, Keleops causes various trackers4—the Steam 5 Rail Tracker, AGKN Tracker, and Crowd Control Tracker (the “Trackers”), which are operated by 6 third parties ironSource, Neustar, and Lotame (the “Third Parties”)—to be installed on the user’s 7 internet browsers. Id. ¶¶ 2, 83. Specifically, to load the Website onto a user’s browser, the browser 8 sends an “HTTP” or “GET” request to Keleops’ server where the Website data is stored. Id. ¶ 28. 9 Keleops’ server then sends an “HTTP response” back to the browser with instructions. Id. These 10 instructions not only include how to properly display the Website, but also cause the Trackers to be 11 installed on the browser. Id. ¶¶ 29-30. 12 The Trackers then cause the browser to send identifying information to the Third Parties. 13 Id. ¶ 30. This includes the user’s IP address, the user-agent string (browser, operating system, and 14 device type), and device capabilities (e.g., supported image formats and compression methods). Id. 15 ¶ 31. A number of elements—such as persistent identifiers and fingerprinting and server-side 16 2 When reviewing a motion to dismiss for failure to state a claim, the court must “accept as true all 17 of the factual allegations contained in the complaint.” Erickson v. Pardus, 551 U.S. 89, 94 (2007) (per curiam) (citation omitted). 18 3 In footnotes, the parties discuss whether Keleops owns or operates the Website. Mot. at 7 n.1; 19 Opp’n at 3 n.4. Keleops contends that it “is the sole member of Gizmodo USA LLC, the American entity owning and operating Gizmodo.com. Gizmodo USA LLC acquired Gizmodo.com in June 20 2024.” Mot. at 7 n.1. As Garon points out, however, Keleops does not move to dismiss on grounds that it is an improperly named party. Opp’n at 3 n.4; see generally Mot. Garon asserts, without 21 citation, that negotiating contracts or integrating code amounts to “installation,” and deriving revenue through trackers constitutes “use.” Opp’n at 3 n.4. The court declines to address such 22 throwaway arguments and bare assertions made only in passing. See Christian Legal Soc. Chapter of Univ. of California v. Wu, 626 F.3d 483, 487 (9th Cir. 2010) (“[W]e’ve refused to address claims 23 that were only argued in passing . . . , or that were bare assertions . . . with no supporting argument[.]”) (cleaned up); Guatay Christian Fellowship v. Cnty. of San Diego, 670 F.3d 957, 987 24 (9th Cir. 2011) (declining to consider argument unsupported by any argument or legal authority). If the parties want an adjudication on an issue, they need to queue it up at an appropriate stage and 25 state their positions along with supporting legal authority. 26 4 The FAC alleges that “[w]hen users visit the Website, Defendant causes four Trackers—the Steamrail Tracker, AGKN Tracker, and Crowd Control Tracker ( collectively, the ‘Trackers’)—to 27 be installed on Website visitors’ internet browsers.” FAC ¶ 2. It is unclear how many Trackers are 1 matching (“device identifier information”)—remain and allow users to be identified even after 2 clearing standard session data, such as cookies. Id. This device identifier information forms a 3 detailed, unique fingerprint that allows for cross-site tracking and behavioral profiling. Id.; see also 4 see id. ¶¶ 84-114 (alleging functionality of Trackers). 5 Garon alleges that these Trackers constitute a “pen register” within the meaning of CIPA 6 section 638.50(b), and that Keleops has violated CIPA section 638.51(a) by installing the Trackers 7 absent Garon’s consent and a court order. FAC ¶¶ 3, 33, 155, 157, 159. He further alleges that 8 Keleops has long incorporated the Trackers’ code into the Website’s code. Id. ¶ 32. Thus, when 9 Garon and other putative class members visited the Website, Trackers were installed on their 10 browsers, which allowed the Third Parties to collect users’ IP addresses and other device 11 information to be used by Keleops and the Third Parties for marketing, advertising, and analytics 12 purposes. Id. ¶ 32, 131-41. 13 B. Procedural History 14 Garon initiated this action in the Superior Court of California, County of Marin on 15 January 28, 2025, on behalf of “all California residents who accessed the Website while in 16 California and had their IP address collected by the Trackers.” Id. ¶ 143. The FAC asserts a single 17 claim for violation of CIPA section 658.1(a). Id. ¶¶ 150-59. On February 28, 2025, Keleops 18 removed to this court based on diversity jurisdiction. See Not. of Removal. 19 II. LEGAL STANDARD 20 A motion to dismiss under Rule 12(b)(6) tests the legal sufficiency of the claims alleged in 21 the complaint. See Parks Sch. of Bus., Inc. v. Symington, 51 F.3d 1480, 1484 (9th Cir. 1995). When 22 reviewing a motion to dismiss for failure to state a claim, the court must “accept as true all of the 23 factual allegations contained in the complaint,” Erickson, 551 U.S. at 94, and may dismiss a claim 24 “only where there is no cognizable legal theory” or there is an absence of “sufficient factual matter 25 to state a facially plausible claim to relief,” Shroyer v. New Cingular Wireless Servs., Inc., 622 F.3d 26 1035, 1041 (9th Cir. 2010) (citing Ashcroft v. Iqbal, 556 U.S. 662, 677-78 (2009); Navarro v. Block, 27 250 F.3d 729, 732 (9th Cir. 2001)) (internal quotation marks omitted). A claim has facial 1 inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678 (citation 2 omitted). In other words, the facts alleged must demonstrate “more than labels and conclusions, 3 and a formulaic recitation of the elements of a cause of action will not do.” Bell Atl. Corp. v. 4 Twombly, 550 U.S. 554, 555 (2007). 5 Under Federal Rule of Civil Procedure

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Garon v. Keleops USA, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/garon-v-keleops-usa-inc-cand-2025.