HADNAGY v. MOSS

CourtDistrict Court, E.D. Pennsylvania
DecidedJanuary 5, 2023
Docket2:22-cv-03060
StatusUnknown

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

Bluebook
HADNAGY v. MOSS, (E.D. Pa. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

CHRISTOPHER J. HADNAGY CIVIL ACTION Individually and on behalf of SOCIAL- ENGINEER, LLC, Plaintiffs,

v. NO. 22-3060

JEFF MOSS and DEF CON COMMUNICATIONS, INC., Defendants.

MEMORANDUM OPINION This suit revolves around Defendants’ publication of a so called “Transparency Report” on their website, which Plaintiff Christopher Hadnagy, individually and on behalf of Social- Engineer LLC, argues is anything but. Plaintiffs sued Jeff Moss and DEF CON Communications, Inc. bringing Defamation, Intentional Interference with Contractual Relations, Invasion of Privacy/False Light, and Intentional Infliction of Emotional Distress claims. Pursuant to Federal Rule of Civil Procedure 12(b)(2), Defendants have moved to dismiss the Complaint on the basis that this Court has no jurisdiction. In the alternative, Defendants move for dismissal for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). For the reasons that follow, Defendants’ motion to dismiss for lack of personal jurisdiction will be granted. Accordingly, their motion under Rule 12(b)(6) will not be addressed. Plaintiffs’ requests for jurisdictional discovery and to amend will, for the reasons below, be denied. FACTUAL BACKGROUND1 DEF CON conducts an annual hacker conference in Las Vegas, Nevada. This conference

1 These facts are drawn from the Complaint and, for the purposes of the motion to dismiss, will be taken as true. See Kost v. Kozakiewicz, 1 F.3d 176, 183 (3d Cir. 1993). is one of the world’s largest hacker conventions, and typically hosts professionals to speak about IT and hacking-related subjects. It hosts break-out sessions, or “villages”, which invite smaller groups of attendees to participate in, for instance, cyber-security challenges, games, or demonstrations. Moss and DEF CON held the first conference in 1993 and every year since it

has grown in size. It is now highly regarded in the tech industry. While DEF CON, through its website, promotes “open discussion between participants, where radical viewpoints are welcome and a high degree of skepticism is expected” it also (as of 2015) posted on its website a Code of Conduct which states, in relevant part, “we do not condone harassment against any participant, for any reason. Harassment includes deliberate intimidation and targeting individuals in a manner that makes them feel uncomfortable, unwelcome, or afraid.” For years, Plaintiffs Hadnagy and Social-Engineer participated in the conference and hosted one of the most attended villages, the SEVillage—focused on Hadnagy’s expertise: human error and the threat it poses to information security as well as applying scientifically proven methods to uncover vulnerabilities, define risk, and provide remediation—which hosted a

hacking competition where teams attempt to attack and defend computers or networks. Although the village was so popular that it had required a 13,000 square foot space to accommodate all those who wished to participate, Plaintiffs chose not to participate in the August 2021 conference. Then, in or around January 2022, Defendants informed Hadnagy that neither he nor Social-Engineer could attend, contribute to, or participate at future conferences. The reasons given were violations of DEF CON’s Code of Conduct. Plaintiffs deny any such violation and repeatedly requested additional, detailed information regarding the alleged violations, but were ignored. Then, on or around February 9, 2022, Moss and DEF CON published an announcement, termed the “Transparency Report”, on the DEF CON website stating, “[w]e received multiple [Code of Conduct] violation reports about a DEF CON Village leader, Chris Hadnagy of the SE Village. After conversations with the reporting parties and Chris, we are confident the severity of the transgressions merits a ban from DEF CON.” This Transparency Report was publicly

accessible on the Internet throughout the United States and abroad. A firestorm on social media followed its publication speculating as to what Hadnagy had done including that he perpetrated sexual assault and/or sexual harassment. Others assumed that Hadnagy’s behavior must have been abhorrent because the conference typically condones extreme or unique behavior. On February 10, 2022, an article titled “DEF CON bans social engineering expert Chris Hadnagy” was published on TechTarget.com, a renowned and well-known news source in the tech community. Plaintiffs’ Complaint alleges that the Transparency Report damaged Hadnagy’s reputation and negatively impacted Social-Engineer’s business. One of Plaintiffs’ leading clients, Northern Trust Corporation, among others, refused to work with Plaintiffs following the publication of the Transparency Report, and specifically referenced the Transparency Report in

refusing to work with them. LEGAL STANDARDS Federal Rule of Civil Procedure 12(b)(2) provides that a party may seek dismissal of a complaint for lack of personal jurisdiction. If a defendant so moves, the court “must accept all of the plaintiff’s allegations as true and construe disputed facts in favor of the plaintiff.” Carteret Sav. Bank, F.A. v. Shushan, 954 F.2d 141, 142 n.1 (3d Cir. 1992). Legal conclusions by a plaintiff that “are no more than conclusions [and] are not entitled to the assumption of truth.” Ashcroft v. Iqbal, 556 U.S. 662, 679 (2009). The burden of proof to establish personal jurisdiction is on the plaintiff. D’Jamoos ex rel. Est. of Weingeroff v. Pilatus Aircraft Ltd., 566 F.3d 94, 102 (3d Cir. 2009) (“D’Jamoos”). DISCUSSION A. Facts Considered on a Motion to Dismiss The allegations found in the Complaint which are relevant to a personal jurisdiction

analysis are: the parties presumed citizenship and principal places of business; that Defendants solicited Plaintiffs to participate in the conference, the Transparency Report; that the DEF CON website was accessible throughout the U.S. and abroad; that the DEF CON conference is one of the world’s largest and is highly regarded in Plaintiffs’ industry; and, that Plaintiffs suffered negative effects following the Transparency Report. Here, both parties make frequent reference to the DEF CON website (https://defcon.org/), specifically the Transparency Report and Code of Conduct pages. Plaintiffs’ Complaint quotes and hyperlinks to website pages on multiple occasions, while Defendants attach as an exhibit to their Motion to Dismiss screenshots of the Transparency Report and Code of Conduct pages from the DEF CON website.

“To decide a motion to dismiss, courts generally consider only the allegations contained in the complaint, exhibits attached to the complaint and matters of public record.” Pension Ben. Guar. Corp. v. White Consol. Indus., Inc., 998 F.2d 1192, 1196 (3d Cir. 1993). “[A] court may [also] consider an undisputedly authentic document that a defendant attaches as an exhibit to a motion to dismiss if the plaintiff's claims are based on the document.” Id. Defendant’s attached screenshots of the Transparency Report and Code of Conduct to their Motion to Dismiss. Neither party raise concerns about these screenshots and Plaintiffs’ claims are based, in part, on these webpages. Accordingly, Defendants’ exhibits to their motion to dismiss will be evaluated in deciding this motion.

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