Hernandez v. Noom, Inc.

CourtDistrict Court, D. Maryland
DecidedDecember 27, 2023
Docket1:23-cv-00641
StatusUnknown

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

Bluebook
Hernandez v. Noom, Inc., (D. Md. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

MARILYN HERNANDEZ, individually and on behalf of all others similarly * situated, * Plaintiff, Case No. 1:23-cv-00641-JRR * v. * NOOM, INC., * Defendant. *

* * * * * * * * * * * * *

MEMORANDUM OPINION This matter comes before the court on Defendant Noom, Inc.’s Motion to Dismiss Plaintiff’s Complaint. (ECF No. 18; the “Motion.”) The parties’ submissions have been reviewed and no hearing is necessary. Local Rule 105.6 (D. Md. 2023). For the reasons that follow, by accompanying order, the Motion will be granted. I. BACKGROUND1 Plaintiff Marilyn Hernandez, individually and on behalf of all others similarly situated, brings this action against Defendant for allegedly wiretapping the electronic communications of visitors to its website, www.noom.com, in violation of Maryland statutory and common law.2 (ECF No. 1.) Plaintiff is citizen and resident of the State of Maryland. Id. ¶ 5.

1 For purposes of this memorandum, the court accepts as true the well-pled facts set forth in the Complaint. (ECF No. 1, titled “Complaint – Class Action” and referred to herein as the “Complaint.”) 2 Plaintiff brings this action pursuant to Federal Rule of Civil Procedure 23 and alleges numerosity, commonality, typicality, adequacy of representation, superiority for certification, predominance, and ascertainability. (ECF No. 1 ¶¶ 63-71.) At this stage of the litigation, the court need not address the factors set forth in Rule 23. Defendant is a Delaware corporation with its principal place of business in New York, New York. Id. ¶ 6. Defendant is a digital health and wellness platform, and operates the website www.noom.com and all of its subpages. Id. ¶ 42. Plaintiff alleges that the court has personal jurisdiction over Defendant because it directed purposeful and tortious acts towards Maryland

citizens. Id. ¶ 8. Plaintiff further alleges that “Defendant chose to avail itself of the business opportunities of marketing and selling its services in Maryland and collecting real-time data from website visit sessions initiated by Maryland citizens while located in Maryland.” Id According to Plaintiff, Defendant procures third-party vendors to embed computer code (“Session Replay Code”) which enables Noom to intercept and record website visitors’ electronic communications with Noom’s website, including “mouse movements, clicks, keystrokes (such as text being entered into an information field or text box), URLs of web pages visited, and/or other electronic communications in real-time.” (ECF No. 1 ¶¶ 1, 25.) Website operators can then access the recordings and view a visual reenactment of the user’s visit through the Session Reply Provider. Id. ¶ 27. Plaintiff alleges that Defendant does not notify users that Defendant utilizes Session

Replay Code or that users’ electronic interactions with the website are recorded. Id. ¶ 60. On March 8, 2022, Plaintiff filed the Complaint, which sets forth two counts: (1) Violation of the Maryland Wiretapping and Electronic Surveillance Act (“MWESA”), MD. CODE ANN., CTS. & JUD. PROC. §§ 10-401, et seq. (Count I); and (2) Invasion of Privacy — Intrusion Upon Seclusion (Count II). (ECF No. 1 at 18–22.) The prayer for relief seeks an order: (i) certifying the Class and appointing Plaintiff as the Class representative; (ii) appointing Plaintiff’s counsel as class counsel; (iii) declaring that Defendant’s alleged past conduct was unlawful; (iv) declaring Defendant’s alleged ongoing conduct is unlawful; (v) enjoining Defendant from continuing the alleged unlawful practices, and awarding such injunctive and other equitable relief as the court deems just and proper; (vi) awarding Plaintiff and the Class members statutory, actual, compensatory, consequential, punitive, and nominal damages, as well as restitution and/or disgorgement of profits allegedly unlawfully obtained; (vii) awarding Plaintiff and the Class members pre-judgment and post-judgment interest; (viii) awarding Plaintiff and the Class members reasonable attorneys’ fees,

costs, and expenses; and (ix) granting such other relief as the court deems just and proper. Id. at 22–23. Defendant moves to dismiss the Complaint on several grounds: (1) Plaintiff fails to allege facts that allow the court to exercise personal jurisdiction over Defendant; (2) Plaintiff fails to sufficiently allege that she suffered an injury-in-fact for Article III standing; and (3) Plaintiff fails to state a claim under MWESA and for common law intrusion upon seclusion. (ECF No. 18-1 at 9-32.) II. LEGAL STANDARDS A. Federal Rule of Civil Procedure 12(b)(1) “Rule 12(b)(1) governs motions to dismiss for mootness and for lack of standing, which

pertain to subject matter jurisdiction.” Stone v. Trump, 400 F. Supp. 3d 317, 333 (D. Md. 2019); see Barnett v. United States, 193 F. Supp. 3d 515, 518 (D. Md. 2016) (“Rule 12(b)(1) of the Federal Rules of Civil Procedure authorizes dismissal for lack of subject matter jurisdiction.”). “The plaintiff bears the burden of proving, by a preponderance of evidence, the existence of subject matter jurisdiction.” Mayor & City Council of Balt. v. Trump, 416 F. Supp. 3d 452, 479 (D. Md. 2019). Subject matter jurisdiction challenges may proceed in two ways: a facial challenge or a factual challenge. Id. A facial challenge asserts “that the allegations pleaded in the complaint are insufficient to establish subject matter jurisdiction.” Id. A factual challenge asserts “that the jurisdictional allegations of the complaint [are] not true.” Id. (quoting Kerns v. United States, 585 F.3d 187, 192 (4th Cir. 2009)). “In a facial challenge, ‘the facts alleged in the complaint are taken as true, and the motion must be denied if the complaint alleges sufficient facts to invoke subject matter jurisdiction.’” Trump, 416 F. Supp. 3d at 479 (quoting Kerns, 585 F.3d at 192 (instructing that in a facial challenge to subject matter jurisdiction the plaintiff enjoys “the same procedural

protection as . . . under a Rule 12(b)(6) consideration.”)). “[I]n a factual challenge, ‘the district court is entitled to decide disputed issues of fact with respect to subject matter jurisdiction.’” Id. Defendant’s 12(b)(1) arguments attack Plaintiff’s pleadings (a facial challenge) and do not present a factual challenge to subject matter jurisdiction. (ECF No. 18-1 at 12-15.) Accordingly, Defendant’s 12(b)(1)-based challenge will be evaluated in accordance with the procedural protections afforded under Rule 12(b)(6), which is to say that the facts alleged in the Complaint will be taken as true per Trump and Kerns. B. Federal Rule of Civil Procedure 12(b)(2) “When a court’s power to exercise personal jurisdiction over a nonresident defendant is challenged by a motion under Federal Rule of Civil Procedure 12(b)(2), ‘the jurisdictional question

is to be resolved by the judge, with the burden on the plaintiff ultimately to prove grounds for jurisdiction by a preponderance of the evidence.’” CoStar Realty Info., Inc. v. Meissner, 604 F. Supp. 2d 757, 763 (D. Md. 2009) (quoting Carefirst of Md., Inc. v. Carefirst Pregnancy Ctrs., Inc., 334 F.3d 390

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Hernandez v. Noom, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/hernandez-v-noom-inc-mdd-2023.