Gill v. Caesars Entertainment, Inc.

District Court, D. Nevada·Decided June 12, 2024·No. 2:23-cv-01447·Unknown

Opinion

* * *

Lead Case No. 2:23-cv-01447-ART-BNW

In re: DATA BREACH SECURITY LITIGATION AGAINST CAESARS ORDER

Before the Court are three competing motions for appointment of interim class counsel. ECF Nos. 34–36. Although there are no oppositions to the motions, the Court’s grant of any motion is to the exclusion of others. The motions demonstrate that each proposed team of attorneys possesses exceptional qualities to satisfy Federal Rule of Civil Procedure 23(g)(1)(A), which requires the Court to consider the work counsel has performed, counsel’s knowledge, counsel’s experience, and counsel’s resources. But because the first proposed team of attorneys has shown additional pertinent qualifications—including diversity, majority support, and filing order—that the Court may consider under Rule 23(g)(1)(B), the Court grants their motion. ECF No. 34. As such, the other two motions are denied. ECF Nos. 35, 36. This is a class action data breach case arising from a cyberattack that allowed a perpetrator to glean sensitive, personally identifying information from Caesars Loyalty Program members. See generally ECF No. 1. Plaintiffs allege that they were damaged by Caesars’s purportedly inadequate security protocols. Id. About a month after the initial underlying case was filed, the Court consolidated numerous cases.1 ECF No. 21. Following the initial consolidation order, the parties filed the three subject motions for appointment of interim class counsel. ECF Nos. 34–36. Shortly thereafter, the 1 Rodriguez, 2:23-cv-01447; Garcia, 2:23-cv-01482; Giuffre, 2:23-cv-01483; Lackey, 2:23-cv- Court consolidated even more cases.2 ECF No. 46. The Court then entered its final consolidation order at the beginning of 2024.3 ECF No. 55. In total, 19 cases have been consolidated under this lead case. See ECF Nos. 21, 46, 55. “The court may designate interim class counsel to act on behalf of a putative class before determining whether to certify the action as a class action” when it is “necessary to protect the interests” of class members. FED. R. CIV. P. 23(g)(3); MANUAL FOR COMPLEX LITIGATION (FOURTH) § 21.11 (2004). This typically occurs in cases where “a large number of putative class actions have been consolidated or otherwise are pending in a single court.” In re Nest Labs Litigation, No. 14-cv-01363-BLF, 2014 WL 12878556, at *1 (C.D. Cal. Aug. 18, 2014) (citing Donaldson v. Pharmacia Pension Plan, No. CIV. 06-3-GPM, 2006 WL 1308582, at *1–2 (S.D. Ill. May 10, 2006)). Designation of interim class counsel is also appropriate when there is competition between law firms to represent the class. See Parish v. Nat’l Football League Players, Inc., No. C 07-00943 WHA, 2007 WL 1624601, at *9 (N.D. Cal. June 4, 2007) (declining to designate interim class counsel without a “gaggle of law firms jockeying to be appointed”). Federal Rule of Civil Procedure 23(g)(1)(A) sets out the considerations that courts must weigh when appointing class counsel once a class has been certified, which courts also apply to the appointment of interim class counsel prior to class certification. See, e.g., Wright v. Jacob Transp., LLC, No. 2:15-cv-00056-JAD-GEF, 2015 WL 3916001, at *3 (D. Nev. June 24, 2015) (citing In re Air Cargo Shipping Servs. Antitrust Litig., 240 F.R.D. 56, 57 (E.D.N.Y. 2006)).4 2 Dwek, 2:23-cv-01659; Carrozzella et al., 2:23-cv-01725; Elvidge, 2:23-cv-01662; Gill, 2:23-cv- 01656; Brewster, 3:23-cv-00525; McCusker, 2:23-cv-01799; Katz, 2:23-cv-01836. 3 Cherveny et al., 2:23-cv-01818; Martin et al., 2:23-cv-01865; Williams et al., 2:23-cv-01919; Popp et al., 3:23-cv-00633; Balsamo et al., 2:24-cv-00043; Lassoff et al., 2:24-cv-00127; Blair- Smith, 2:24-cv-00169. 4 The Manual for Complex Litigation provides different approaches to selecting class counsel. First, there is the “private ordering” approach where the attorneys agree who should be lead class counsel and the court approves the selection after a review. MANUAL FOR COMPLEX LITIGATION (FOURTH) § 21.272 (2004). Second, the “selection from competing counsel” where the court selects counsel, who are unable to agree, based on the examination of the factors in The four factors courts must consider when appointing interim class counsel include: 1. the work counsel has done in identifying or investigating potential claims in the action; 2. counsel’s experience in handling class actions, other complex litigation, and the types of claims asserted in the action; 3. counsel’s knowledge of the applicable law; and

4. the resources that counsel will commit to representing the class. FED. R. CIV. P. 23(g)(1)(A)(i)–(iv). Courts can also “consider any other matter pertinent to counsel’s ability to fairly and adequately represent the interests of the class.” FED. R. CIV. P. 23(g)(1)(B). “If more than one adequate applicant seeks appointment, the court must appoint the applicant best able to represent the interests of the class.” FED. R. CIV. P. 23(g)(2). Appointing interim class counsel is appropriate in this case because this is a consolidated action, and three teams of attorneys are competing to represent the putative class. See Nest Labs, 2014 WL 12878556, at *1; Parish, 2007 WL 1624601, at *9. Thus, appointing interim class counsel is necessary to protect the interests of the class. See MANUAL OF COMPLEX LITIGATION (FOURTH) § 21.11 (2004). Three cohorts of attorneys seek appointment: “First Cohort” Interim Class Counsel: (1) John A. Yanchunis, Morgan & Morgan; (2) Douglas J. McNamara, Cohen Milstein; (3) Amy E. Keller, Dicello Leavitt LLP. Plaintiffs’ Steering Committee: (1) Jeff Ostrow, Kopelowitz Ostrow Ferguson Weiselberg Gilbert (Chair); (2) James Pizzirusso, Hausfeld LLP; (3) Gerard Stranch, Stranch, Jennings & Garvey; (4) Gary M. Klinger, Milberg Coleman Bryson Phillips Grossman PLLC; (5) Sabita J. Soneji, Tycko & Zavareei LLP; (6) Linda Nussbaum; Nussbaum Law Group, P.C. Liaison Counsel: Don Springmeyer, Kemp Jones.

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Gill v. Caesars Entertainment, Inc., (D. Nev. 2024).

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