Jensen v. Cablevision Sys. Corp.

372 F. Supp. 3d 95
CourtDistrict Court, E.D. New York
DecidedFebruary 27, 2019
Docket2:17-cv-100 (ADS)(AKT)
StatusPublished
Cited by17 cases

This text of 372 F. Supp. 3d 95 (Jensen v. Cablevision Sys. Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jensen v. Cablevision Sys. Corp., 372 F. Supp. 3d 95 (E.D.N.Y. 2019).

Opinion

SPATT, District Judge:

*102Paul Jensen ("Jensen" or the "Plaintiff") commenced this action individually and on behalf of others similarly situated against Cablevision Systems Corporation ("Cablevision"), and Altice N.V. ("Altice") (collectively the "Defendants") for damages stemming from alleged violations of the Computer Fraud and Abuse Act ("CFAA"), 18 U.S.C. § 1030 and New York General Business Law ("GBL") § 349. This case arises from allegations by the Plaintiff that the Defendants used the Plaintiff's wireless router, which was leased from the Defendants, to broadcast a public Wi-Fi network, without the Plaintiff's authorization. In a Memorandum of Decision & Order, dated September 27, 2017 (the "Order"), the Court dismissed the Plaintiff's CFAA claim, leaving the state law claim as the only remaining cause of action.

The Defendants have moved to exclude the reports and testimony of Dr. Jennifer Golbeck and Dr. Mitchell Smooke. In addition, the Plaintiff has moved for class certification, pursuant to Rule 23 of the Federal Rules of Civil Procedure ("Rule" or " FED. R. CIV. P. ") requesting that the Court certify the class.

For the following reasons, the Defendants' motion to exclude the report and testimony of Dr. Mitchell Smooke is granted in part and denied in part and the Defendants' motion to exclude the report and testimony of Dr. Jennifer Golbeck is granted in part and denied in part. The Plaintiff's motion for class certification is denied in its entirety.

I. BACKGROUND

A. THE FACTUAL BACKGROUND

1. The Parties

The Plaintiff is a resident of Brooklyn, New York and a subscriber to Cablevision's private Wi-Fi service, Optimum Online Wi-Fi ("Optimum Residential Wi-Fi"). Cablevision provided Jensen with a router free of charge in conjunction with his purchase of Optimum Residential Wi-Fi.

Cablevision is an American corporation, which is incorporated under the laws of the state of Delaware. Cablevision provides Optimum Residential Wi-Fi, along with other cable and internet services, to customers in New York, New Jersey, Connecticut and Pennsylvania and is registered with the New York Department of State. Its principal place of business is *103located at 1111 Stewart Avenue, Bethpage, New York 11714. In June 2016, Cablevision was acquired by Altice and has since done business in the United States as "Altice USA." Amended Class Action Complaint ("Compl.") ¶ 12.

Altice is a Dutch telecommunications company with an international footprint. Its principal place of business is in Amsterdam. Altice "provides and/or oversees" Optimum Residential Wi-Fi. Id. ¶ 13. Dexter Goei, the President of Altice, also now serves as the CEO of Cablevision.

2. The Public Wi-Fi Network

In July 2013, the Defendants conceived of a public Wi-Fi hotspot network that utilized the Wi-Fi home networks of their customer base ("Optimum Public Wi-Fi"). Declaration of Gillian L. Wade ("Class Cert. Wade Decl."), Feb. 9, 2018, Ex. 2 at 37:10-24. Originally, Cablevision considered providing customers with the opportunity to opt out of participating in Optimum Public Wi-Fi, which at the time was referred to as "Home as a Hotspot." Class Cert. Wade Decl., Ex. 2 at 31:5-16. The Defendants conducted market research, in part to determine customer opinion on this new network. This revealed that customers were concerned about control, security, internet speed and cost. Class Cert. Wade Decl., Ex. 4 at CV00034939. In pertinent part, the study explained:

Subscribers often talked about control and how they want to maintain control over their connections. The fact that the router will be deployed to customers as an upgrade whether requested or not caused some to feel a loss of control, which is problematic.
Security was a major concern. Despite being told that [the public network] operates on a completely separate network and that tech remote-in requires permission, subscribers often worried that their personal data would be compromised. Saying that this is not the case was enough for some, but others needed more convincing.
Many worried that having guests on their network would mean decreased speeds.
...
There was a rather widespread assumption that the smart router would come at a price and/or would increase monthly charges - even after people read through information noting "no extra cost." This was concerning and another potential barrier to the adoption of the device.

Id.

When the service was launched, Cablevision altered its initial concept and revised its "Home as a Hotspot" name to "Optimum Wi-Fi." Class Cert. Wade Decl., Ex. 2 at 37:10-24. The program called for a modification of Cablevision's wireless routers, which were provided to customers free of charge. In addition to providing the Optimum Residential Wi-Fi network, Cablevision's routers were configured to broadcast the separate, publically accessible Optimum Public Wi-Fi. This network is only available to active Optimum subscribers. Declaration of Matthew Ingber ("Ingber Decl."), Ex.10 at 35:18-24. Cablevision provides one of four models of wireless routers: Sagemcom 5260, Sagemcom 3965, D-Link DIR-868L and Netgear 3400. Each router became a component, along with other Cablevision wireless routers provided to other customers, of a large-scale, public Wi-Fi network. Compl. ¶¶ 16, 46. Optimum Public Wi-Fi is accessible to any active Optimum subscriber within range of the wireless router and is not password protected. Customers are not able to detect or monitor any of the individuals who utilize their wireless router to access Optimum Public Wi-Fi. However, customers *104may elect not to use the Cablevision-provided router and instead, purchase their own. Ingber Decl., Ex. 11 at 75:22-76:6. Allegedly, this large-scale, public network is part of a concerted effort by the Defendants to utilize their customer base to compete with cellular networks. Jensen claims that the Defendants are "externaliz[ing] much of the capital and operating costs" of such a network, in order to compensate for the lack of their own network infrastructure. Compl. ¶ 16.

3. Cablevision's Alleged Conduct

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Bluebook (online)
372 F. Supp. 3d 95, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jensen-v-cablevision-sys-corp-nyed-2019.