Jacob v. Lorenz

CourtDistrict Court, S.D. New York
DecidedSeptember 7, 2022
Docket1:21-cv-06807
StatusUnknown

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

Bluebook
Jacob v. Lorenz, (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ARIADNA JACOB and INFLUENCES, INC., Plaintiffs, OPINION & ORDER – against – 21 Civ. 6807 (ER) TAYLOR LORENZ and THE NEW YORK TIMES COMPANY, Defendants. RAMOS, D.J.: Ariadna Jacob and her company, Influences, Inc., brought this libel suit on August 12, 2021 against Taylor Lorenz and her then-employer The New York Times for an allegedly defamatory article written by Lorenz and published by the New York Times. Doc. 1. The plaintiffs filed an amended complaint on November 19, 2021. Doc. 13. Pending before the Court is the defendants’ motion to dismiss for failure to state a claim upon which relief can be granted pursuant to Fed. R. Civ. P. 12(b)(6). Doc. 16. For the reasons set forth below, the motion is granted. I. BACKGROUND The following facts are based on the allegations in the Amended Complaint, which the Court accepts as true for purposes of the instant motion.1 See, e.g., Koch v. Christie’s Int’l PLC, 699 F.3d 141, 145 (2d Cir. 2012). Jacob is domiciled in Nevada and is the founder and CEO of Influences, Inc., a Delaware corporation with its principal place of business in Nevada. ¶¶ 3, 4, 12. Jacob is in the business of managing, counseling, and guiding “influencers,” or people who

1 Unless otherwise noted, all references to ¶ __ refer to the Amended Complaint, Doc. 13. market themselves as well as products and services, on TikTok, the social media platform in which users share short videos. ¶ 13. Jacob is also known to have maintained so-called collaborative houses where young influencers would live and work.2 Jacob is familiar with computer coding, search engine optimization, and social media, and she has a background in

marketing and branding. ¶ 14. At one point, Influences represented over 85 TikTok content creators. The defendant Lorenz, at all relevant times, was a technology columnist for The New York Times. ¶ 19. On August 10, 2020, Lorenz contacted Jacob via text message and requested a call with her. ¶ 20. Prior to the phone call, which ultimately never occurred, Jacob found out that Lorenz was writing a story on allegations of impropriety against Jacob and Influences. ¶ 21. Lorenz then sent an email containing 27 questions at noon and requested that Jacob respond by 9 a.m. the next day. ¶ 22. Jacob and her attorney responded with documentation and offered to provide additional documentation on background. ¶ 24. Lorenz responded with 12 additional questions, to which Jacob promptly responded. ¶ 24. Lorenz responded with an email

purporting to summarize the facts and an additional 12 questions. Id. Jacob again responded with documentation refuting several of the allegations. Id. On August 14, 2020, the defendants published the article entitled, “Trying to Make It Big Online? Getting Signed Isn’t Everything” (the “Article”). ¶ 27; Doc. 18-1. The sub headline read: “Young people come to Los Angeles in droves with dreams of fame and fortune. Once they’re discovered, it’s not always sunny.” Id. Below the headline was a picture of Jacob and a number of influencers she represented. ¶ 28. The caption of the picture says that the influencers’ dreams were turned “into a living nightmare.” Id. The Article includes numerous

2 The three influencer houses mentioned in the Article were known as Girls in the Valley, Kids Next Door, and Drip Crib. statements that Jacob alleges are false and that she had refuted to Lorenz prior to the Article’s publication. These statements include: • Quotes from two former clients, Marcus Olin and Jesse Underhill, who lived in the “Kids Next Door” (“KND”) influencer house. ¶¶ 29–30.

o Statement 13: Olin was quoted as saying: “We went into this thinking we’d have brand deals weekly or monthly . . . We were expecting a quota where we could pay our half of rent through brand deals. But we weren’t getting enough deals to cover our half of rent.” Doc. 18-1 at 2.

o Statement 2: Underhill was quoted as saying: “We didn’t have working Wi-Fi for a month . . . We couldn’t go live because our livestreams would cut out.” Id. at 3.

The plaintiffs allege that Underhill had financial struggles not because of any actions by Jacob, but rather because of his account suspension due to failure to follow user guidelines, a fact about which Lorenz was made aware. ¶ 31.

o Statement 3: “At the end of July, the influencers were told [by plaintiffs] that they would have to cover a larger share of rent [at the KND house]. They all felt the crunch, and the dream of living and working in a mansion with friends turned into a ‘living nightmare,’ Mr. Underhill said. By early August, half of the residents had moved out. The house itself has been re- listed for sale on Zillow.” Doc. 18-1 at 3.

The plaintiffs allege they merely demanded compliance with the influencers’ contractual obligations. ¶ 32.

• Statements regarding Brittany Tomlinson, a TikTok creator who would later become plaintiffs’ client:

o Statement 4: Jacob had messaged Tomlinson, via Twitter direct message, asking “I’m seeing this image of you going around a lot, have you made any money?” Doc. 18-1 at 4.

The plaintiffs allege that messages demonstrate that this was false and defendants did not ask the plaintiffs about this prior to publication. ¶ 34. The plaintiffs allege that this statement “sets the tone” to portray plaintiffs as “unethical and unscrupulous,” demonstrating defendants’ “reckless disregard for the truth.” Id.

3 While the plaintiffs did not number the statements in their complaint, both parties did so in their motion papers. For the sake of clarity, the Court adopts the numbering of the statements adopted by the parties. o Statement 5: Tomlinson flew to Los Angeles in September 2019 and stayed at Jacob’s apartment. The Article states: “‘[Jacob is] buying me lunch and dinner. She claims she’s mentored by Gary Vee,’ said Ms. Tomlinson, referring to the entrepreneur Gary Vaynerchuk. ‘I met all these people who she said will help my career.’ (Mr. Vaynerchuk said he has no affiliation with Influences.)” Doc. 18-1 at 4.

The plaintiffs allege that this was misleading, as mentorship is not the same as affiliation, and Vaynerchuk even offered Tomlinson a spot in a super bowl commercial because of his relationship with Jacob. ¶ 35.

o Statement 6: “‘By January, I realized I hadn’t been paid since Halloween,’ [Tomlinson] said.4 Ms. Tomlinson reached out to the brands she’d worked with and discovered that she was owed tens of thousands of dollars. In April, she filed a complaint with the California Labor Commission, on the grounds that Ms. Jacob had violated California law by operating as a talent agency without a license. In it, she claims Ms. Jacob is withholding $23,683.82 in fees; that Ms. Jacob ‘demanded unconscionable fees’ of up to 20 percent commission; and that Ms. Jacob bought and is squatting on the domain name bittanybroski.com.” Doc. 18- 1 at 4.

The plaintiffs allege that Tomlinson was not signed to Influences, as this statement suggests, but rather to Creator Edge, another company in which Jacob was one-third owner.5 ¶ 37. Further, the fees were not withheld but simply had not yet been paid by the brands. ¶ 38.

o Statement 7: Quotes from other talent managers regarding allegations that Jacob tried to lock creators into contracts, ¶ 39: “‘In an ethical management talent relationship you should be able to part ways at any time,’ said Lisa Filipelli, a partner at Select Management Group, a digital talent management firm. ‘Any management contract with a creator should be at will.

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Jacob v. Lorenz, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacob-v-lorenz-nysd-2022.