In Re: WhaleCo/Potter Handy Data Privacy Mass Actions; In Re: WhaleCo Inc. Privacy Litigation

District Court, E.D. New York·Decided September 9, 2026·No. 1:25-cv-04916·Unknown

Opinion

UEANSITTEEDR NS TDAISTTERS IDCITS TORF INCETW C OYUORRTK ---------------------------------------------------------------

MEMORANDUM & ORDER In Re: Whaleco/Potter Handy Data Privacy Mass 25-CV-4916 (MKB) Actions

---------------------------------------------------------------

25-CV-5854 (MKB) In Re: WhaleCo Inc. Privacy Litigation

--------------------------------------------------------------- MARGO K. BRODIE, United States District Judge: Defendant Whaleco, Inc., doing business as Temu (“Temu”), filed the instant motion1 on June 18, 2026 against Plaintiffs in both In re Whaleco/Potter Handy Data Privacy Mass Actions (25-CV-4916) and In re Whaleco Privacy Litigation (25-CV-5854) (listed in Appendix A this Memorandum and Order) for attorneys’ fees and costs incurred by Temu in securing an order compelling arbitration in the two related actions, (the “Actions”).2 (Def.’s Mem. 1 n.1.) Plaintiffs, who are all Temu users, initially filed complaints in California state court between March and June of 2025, alleging violations of various California privacy, business, and advertising laws by Temu. (Id. at 2–3.) Temu removed these cases to the Central District of

1 (Def.’s Mot., Docket Entry No. 50; Def.’s Mem. in Supp. of Def.’s Mot. (“Def.’s Mem.”), appended to Def.’s Mot., Docket Entry No. 50-1; Pls.’ Mem. in Opp’n to Def.’s Mot. (“Pls.’ Opp’n”), Docket Entry No. 51; Def.’s Reply in Supp. of Def.’s Mot. (“Def.’s Reply”), Docket Entry No. 52.)

2 Plaintiffs in the Actions are represented by Potter Handy, LLP (“Potter Handy”). Temu is represented by Latham & Watkins. The Actions are substantially similar, and Temu provides that Latham & Watkins incurred the alleged fees and costs in connection with their work on both Actions. (Def.’s Mem. 1 n.1.) Temu filed one motion rather than filing a duplicative motion in both cases, (id.), and the parties filed one set of briefing papers. In addition, the Actions contain many identical filings and identical Court orders. Accordingly, the Court addresses Temu’s motion for attorneys’ fees and costs for both cases in a single decision. Unless stated otherwise, the Court refers to the docket entry numbers of the In re Whaleco/Potter Handy Data Privacy California, where they were related and consolidated. (Id.) The cases were then transferred to the Eastern District of New York, and by the end of October of 2025, the cases were consolidated into the two Actions before the Court. (Id. at 6.) In the midst of briefing a motion to compel arbitration, on February 3, 2026, the parties jointly moved to stay the claims for submission to arbitration in the Actions, which the Court granted. (Order dated Nov. 24, 2025; Joint Motion to Stay Claims, Docket Entry No. 46; Order dated Feb. 4, 2026.) Temu now seeks $597,553 in attorneys’ fees and $52,173 in costs pursuant to the Temu’s terms of use, (the “Terms”).3 (Def.’s Mem. 2.) For the reasons explained below, the Court grants Temu’s motion for attorneys’ fees and costs in the amounts of $302,547.60 and $52,173, respectively.

I. Background a. The Terms The Court reviews the pertinent sections of the Terms for the motion.4

3 The Terms set forth policies and procedures that govern the relationship between Temu users and Temu. (Def.’s Mem. 1.) The Terms are hyperlinked on the registration screen for Temu’s applications, products, services, and websites (“Services”). (Terms last updated Nov. 7, 2025, annexed to Decl. of Serrin Turner in Supp. of Def.’s Mot. (“Turner Decl.”) as Ex. L, Docket Entry No. 50-15.) See Hu v. Whaleco, Inc., 779 F. Supp. 3d 265, 274 (E.D.N.Y. 2024). By continuing to use the Services, users agree to the Terms. See Hu, 779 F. Supp. 3d at 274.

4 Temu provides a copy of the Terms dated November 7, 2025. (See Terms last updated Nov. 7, 2025.) Plaintiffs argue that Temu relies on a version of the Terms from March of 2025 that postdates the commencement of Plaintiffs’ actions, and this “omission alone defeats any claim of contractual fee entitlement.” (Pls.’ Opp’n 16.) Temu contends that Plaintiffs’ argument is meritless because Section 19.8 of the Terms (the provision governing attorneys’ fees and costs) has remained the same “at all relevant times, including when Plaintiffs originally brought their lawsuits and throughout the litigation thereafter.” (Def.’s Reply 10; see Terms last updated Feb. 26, 2025, annexed to Decl. of Serrin Turner in Further Supp. of Def.’s Mot. (“Turner Reply Decl.”) as Ex. M, Docket Entry No. 52-2; Terms last updated July 25, 2025, annexed to Turner Reply Decl. as Ex. N, Docket Entry No. 52-3.) Since the Terms included identical Section 19.8 provisions at all relevant times during Plaintiffs’ actions, the Court is unpersuaded by Plaintiffs’ argument and relies on the i. First page of the Terms On the first page of the Terms, section 1.5 states in relevant part: Please be aware that Section 19 below contains provisions governing how disputes between you and us will be resolved, including without limitation, any disputes that arose or were asserted prior to the effective date of the Terms. Section 19 contains, among other things, an agreement to arbitrate which requires, with limited exceptions, that all disputes between you and us be resolved by binding and final arbitration.5 (Terms § 1.5; see id. § 19.) The provision further provides that: Unless you opt out of the agreement to arbitrate within [thirty] days of the effective date of the agreement: (1) you and we will only be permitted to pursue disputes or claims and seek relief against the other party on an individual basis, not as a plaintiff or class member in any class or representative action or proceeding and each of us waives our right to participate in a class action lawsuit or class-wide arbitration; and (2) each of us is waiving our right to pursue disputes or claims and seek relief in a court of law and to have a jury trial. In some countries you may have additional rights and/or elements of the arbitration agreement may not apply to you as required by law. (Id. § 1.5.) Section 19.1 specifies that the parties “agree that any dispute, claim, or disagreement arising out of or relating in any way to your access to or use of [ ] Services . . . will be resolved by binding arbitration . . . rather than in court . . . .” (Id. § 19.1.) It states further that all disputes are governed by New York law, (id. § 18.3), and all non-arbitrable disputes must be resolved by “a court of competent jurisdiction located in New York, New York,” (id. § 18.4). ii. Section 19.8 attorneys’ fees and costs Section 19.8 of the Terms shifts attorneys’ fees and costs to the other party if the following conditions are met: If you or we need to invoke the authority of a court of competent jurisdiction to compel arbitration, then the party that obtains an order compelling arbitration in such action shall have the right to collect from the other party its reasonable costs, necessary disbursements, and reasonable attorneys’ fees incurred in securing an order compelling arbitration. The prevailing party in any court pacreticoend ernelta ttoin gar btoit rwathioetnh, eirn eciltuhdeirn gp atrhtey ihnafso rsmatails fdieisdp uantey rceosonlduittiioonn process, is entitled to recover their reasonable costs, necessary disbursements, and reasonable attorneys’ fees and costs.

Free access — add to your briefcase to read the full text and ask questions with AI

In Re: WhaleCo/Potter Handy Data Privacy Mass Actions; In Re: WhaleCo Inc. Privacy Litigation, (E.D.N.Y. 2026).

In Re: WhaleCo/Potter Handy Data Privacy Mass Actions; In Re: WhaleCo Inc. Privacy Litigation (In Re: WhaleCo/Potter Handy Data Privacy Mass Actions; In Re: WhaleCo Inc. Privacy Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
Missouri v. Jenkins Ex Rel. Agyei
491 U.S. 274 (Supreme Court, 1989)
Farrar v. Hobby
506 U.S. 103 (Supreme Court, 1992)
Bank of New York v. First Millennium, Inc.
607 F.3d 905 (Second Circuit, 2010)
Green v. City of New York
403 F. App'x 626 (Second Circuit, 2010)
Konits v. Karahalis
409 F. App'x 418 (Second Circuit, 2011)
Fox v. Vice
131 S. Ct. 2205 (Supreme Court, 2011)
Millea v. Metro-North Railroad
658 F.3d 154 (Second Circuit, 2011)
Oliveri v. Thompson
803 F.2d 1265 (Second Circuit, 1986)
Morgan Stanley Group v. New England Ins. Co.
225 F.3d 270 (Second Circuit, 2000)