Gill v. Caesars Entertainment, Inc.

CourtDistrict Court, D. Nevada
DecidedJune 12, 2024
Docket2:23-cv-01447
StatusUnknown

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

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

Opinion

1 UNITED STATES DISTRICT COURT

2 DISTRICT OF NEVADA

3 * * *

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

5 In re: DATA BREACH SECURITY LITIGATION AGAINST CAESARS ORDER 6 ENTERTAINMENT, INC.

8 9 Before the Court are three competing motions for appointment of interim class counsel. 10 ECF Nos. 34–36. Although there are no oppositions to the motions, the Court’s grant of any 11 motion is to the exclusion of others. The motions demonstrate that each proposed team of 12 attorneys possesses exceptional qualities to satisfy Federal Rule of Civil Procedure 23(g)(1)(A), 13 which requires the Court to consider the work counsel has performed, counsel’s knowledge, 14 counsel’s experience, and counsel’s resources. But because the first proposed team of attorneys 15 has shown additional pertinent qualifications—including diversity, majority support, and filing 16 order—that the Court may consider under Rule 23(g)(1)(B), the Court grants their motion. ECF 17 No. 34. As such, the other two motions are denied. ECF Nos. 35, 36. 18 I. BACKGROUND 19 This is a class action data breach case arising from a cyberattack that allowed a perpetrator 20 to glean sensitive, personally identifying information from Caesars Loyalty Program members. 21 See generally ECF No. 1. Plaintiffs allege that they were damaged by Caesars’s purportedly 22 inadequate security protocols. Id. 23 About a month after the initial underlying case was filed, the Court consolidated 24 numerous cases.1 ECF No. 21. Following the initial consolidation order, the parties filed the three 25 subject motions for appointment of interim class counsel. ECF Nos. 34–36. Shortly thereafter, the 26 27 1 Rodriguez, 2:23-cv-01447; Garcia, 2:23-cv-01482; Giuffre, 2:23-cv-01483; Lackey, 2:23-cv- 1 Court consolidated even more cases.2 ECF No. 46. The Court then entered its final consolidation 2 order at the beginning of 2024.3 ECF No. 55. In total, 19 cases have been consolidated under this 3 lead case. See ECF Nos. 21, 46, 55. 4 II. LEGAL STANDARD 5 “The court may designate interim class counsel to act on behalf of a putative class before 6 determining whether to certify the action as a class action” when it is “necessary to protect the 7 interests” of class members. FED. R. CIV. P. 23(g)(3); MANUAL FOR COMPLEX LITIGATION 8 (FOURTH) § 21.11 (2004). This typically occurs in cases where “a large number of putative class 9 actions have been consolidated or otherwise are pending in a single court.” In re Nest Labs 10 Litigation, No. 14-cv-01363-BLF, 2014 WL 12878556, at *1 (C.D. Cal. Aug. 18, 2014) (citing 11 Donaldson v. Pharmacia Pension Plan, No. CIV. 06-3-GPM, 2006 WL 1308582, at *1–2 (S.D. 12 Ill. May 10, 2006)). Designation of interim class counsel is also appropriate when there is 13 competition between law firms to represent the class. See Parish v. Nat’l Football League 14 Players, Inc., No. C 07-00943 WHA, 2007 WL 1624601, at *9 (N.D. Cal. June 4, 2007) 15 (declining to designate interim class counsel without a “gaggle of law firms jockeying to be 16 appointed”). 17 Federal Rule of Civil Procedure 23(g)(1)(A) sets out the considerations that courts must 18 weigh when appointing class counsel once a class has been certified, which courts also apply to 19 the appointment of interim class counsel prior to class certification. See, e.g., Wright v. Jacob 20 Transp., LLC, No. 2:15-cv-00056-JAD-GEF, 2015 WL 3916001, at *3 (D. Nev. June 24, 2015) 21 (citing In re Air Cargo Shipping Servs. Antitrust Litig., 240 F.R.D. 56, 57 (E.D.N.Y. 2006)).4 22 2 Dwek, 2:23-cv-01659; Carrozzella et al., 2:23-cv-01725; Elvidge, 2:23-cv-01662; Gill, 2:23-cv- 23 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; 24 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. 25 4 The Manual for Complex Litigation provides different approaches to selecting class counsel. 26 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 27 (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 1 The four factors courts must consider when appointing interim class counsel include: 2 1. the work counsel has done in identifying or investigating potential claims in the action; 3 2. counsel’s experience in handling class actions, other complex 4 litigation, and the types of claims asserted in the action; 5 3. counsel’s knowledge of the applicable law; and

6 4. the resources that counsel will commit to representing the class. 7 FED. R. CIV. P. 23(g)(1)(A)(i)–(iv). 8 Courts can also “consider any other matter pertinent to counsel’s ability to fairly and 9 adequately represent the interests of the class.” FED. R. CIV. P. 23(g)(1)(B). “If more than one 10 adequate applicant seeks appointment, the court must appoint the applicant best able to represent 11 the interests of the class.” FED. R. CIV. P. 23(g)(2). 12 III. ANALYSIS 13 Appointing interim class counsel is appropriate in this case because this is a consolidated 14 action, and three teams of attorneys are competing to represent the putative class. See Nest Labs, 15 2014 WL 12878556, at *1; Parish, 2007 WL 1624601, at *9. Thus, appointing interim class 16 counsel is necessary to protect the interests of the class. See MANUAL OF COMPLEX LITIGATION 17 (FOURTH) § 21.11 (2004). 18 Three cohorts of attorneys seek appointment: 19 “First Cohort” 20 Interim Class Counsel: (1) John A. Yanchunis, Morgan & Morgan; (2) Douglas J. McNamara, Cohen Milstein; (3) Amy E. Keller, Dicello Leavitt LLP. 21 Plaintiffs’ Steering Committee: (1) Jeff Ostrow, Kopelowitz Ostrow Ferguson 22 Weiselberg Gilbert (Chair); (2) James Pizzirusso, Hausfeld LLP; (3) Gerard Stranch, Stranch, Jennings & Garvey; (4) Gary M. Klinger, Milberg Coleman 23 Bryson Phillips Grossman PLLC; (5) Sabita J. Soneji, Tycko & Zavareei LLP; (6) Linda Nussbaum; Nussbaum Law Group, P.C. 24 Liaison Counsel: Don Springmeyer, Kemp Jones. 25

27 experimental and has been used for antitrust and securities cases. Id. As the parties do not agree who should be lead counsel, the Court uses the factors in Rule 23(g)(1)(A) and considerations in 1 “Second Cohort” Interim Class Counsel: (1) Ben Barnow, Barnow and Associates, P.C.; (2) Todd 2 S. Garber, Filkelstein, Blankinship, Frei-Pearson & Garber, LLP. 3 Liaison Counsel: David C. O’Mara; The O’Mara Law Firm, P.C. 4 “Third Cohort” 5 Interim Class Counsel: (1) Gary F. Lynch, Lynch Carpenter, LLP; (2) Erin G. Comite, Scott + Scott Attorneys at Law LLP. 6 Liaison Counsel: Jennifer A. Fornetti, Bourassa Law Group. 7 8 The Court discusses each cohort’s qualifications in light of the Rule 23(g)(1)(A) factors 9 and additional Rule 23(g)(1)(B) considerations below. 10 A. Interim Co-Lead Class Counsel 11 Each cohort’s motion contains a discussion of the four factors the Court must consider. 12 See ECF Nos. 34–36. “Thus, the question is not whether either team is qualified, but which team 13 has the best chance of effectively representing the putative class and ensuring that this case 14 proceeds in an efficient manner.” In re Folgers Coffee, Mktg. Litig., No. 21-2984-MD-C-BP, 15 2021 WL 7906854, at *2 (W.D. Mo. June 7, 2021). The Court discusses each of the 16 Rule 23(g)(1)(A) factors and Rule 23(g)(1)(B) considerations in turn. 17 1.

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