Klein v. Meta Platforms, Inc.

District Court, N.D. California·Decided July 20, 2021·No. 3:20-cv-08570·Unknown

Opinion

NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION

MAXIMILIAN KLEIN, et al. Case No. 20-CV-08570-LHK

Plaintiffs, ORDER GRANTING MOTION TO DISQUALIFY v. Re: Dkt. No. 93

Defendant. Before the Court is Facebook’s motion to disqualify Keller Lenkner LLC, which was appointed to Plaintiffs’ Executive Committee for the consumer class. ECF No. 93. The hearing on the motion to disqualify was set for September 30, 2021. However, the Court granted the motion to disqualify on July 13, 2021, ECF No. 123, in advance of the July 15, 2021 hearing on Facebook’s motion to dismiss in light of the importance of the issues raised by the motion to disqualify. Id. The Court noted that the Court was focusing on preparation for the motion to dismiss hearing and would issue a written decision on the motion to disqualify shortly. Id. This written decision follows. I. BACKGROUND A. Factual Background Facebook’s motion to disqualify is based on Keller Lenkner’s employment of Albert Pak, who previously worked at Kellogg, Hansen, Todd, Figel & Frederick (“Kellogg Hansen”). Mot. at 3–4. As a fourth-year associate at Kellogg Hansen, Mr. Pak represented Facebook in antitrust investigations brought by the Federal Trade Commission (“FTC”) and a group of state Attorneys General (“the Facebook government investigations”). Pak Decl. ¶ 6. Those antitrust investigations culminated in the filing of FTC v. Facebook, Inc., No. 20-CV-3590-JEB (D.D.C. filed Dec. 9, 2020), and New York v. Facebook, Inc., No. 20-CV-3589-JEB (D.D.C. filed Dec. 9, 2020), which are related to the instant case. See ECF No. 78 at 35 (parties’ joint case management statement, stating that the antitrust lawsuits filed by the FTC and the states are related to the instant case). Between December 11, 2019 and June 24, 2020, Mr. Pak billed 824.5 hours to the Facebook government investigations, which was approximately three-quarters of the time that Mr. Pak billed during this period of his employment at the firm. Panner Decl. ¶ 8. While working on the Facebook government investigations, Mr. Pak was supervised by Aaron Panner, a Kellogg Hansen partner. Id. ¶ 4; Pak Decl. ¶ 12. Mr. Panner “had a leading role in a team of outside lawyers” working with consulting and potential testifying experts for Facebook. Pak Decl. ¶ 12; Panner Decl. ¶ 6. As a part of Mr. Pak’s work, Mr. Pak reviewed and drafted legal memoranda; assisted with a witness interview; helped Facebook respond to an FTC civil investigative demand; worked with consulting and potential testifying experts for Facebook; reviewed Facebook’s documents; attended team meetings; participated in several calls per week, including with Facebook’s in-house counsel; and received hundreds if not thousands of case-related emails. Pak Decl. ¶¶ 13–15; Panner Decl. ¶¶ 5–6. According to Mr. Pak, “a large portion” of these case-related emails “were administrative, ministerial, or otherwise process-focused.” Pak Decl. ¶ 15. Some of the emails that Mr. Pak received were daily emails from Mark Hansen, a Kellogg Hansen partner who serves as lead counsel for Facebook in the litigation against the FTC and state Attorneys General. Panner Decl. ¶ 7. In Mr. Hansen’s daily emails, Mr. Hansen “shared his thinking on legal and trial strategy and forwarded documents and analysis from the client and counsel at other firms assisting Facebook on the investigations and potential litigation.” Id. On June 26, 2020, Mr. Pak left Kellogg Hansen. Pak Decl. ¶ 18. Mr. Pak did not take any case-related documents with him. Id. On June 29, 2020, Mr. Pak began working at Keller Lenkner. Id. ¶ 19. “On that day or shortly thereafter,” Mr. Pak spoke with Warren D. Postman, a partner at Keller Lenkner, about previous matters he had worked on for the purposes of performing a conflicts check. Id. On June 30, 2020, Mr. Pak told Mr. Postman that Mr. Pak had worked on the Facebook matter, but Mr. Pak did not reveal the substance of his work on the matter. Id.; Postman Decl. ¶ 13. On July 1, 2021, Mr. Pak asked Kellogg Hansen for a list of clients he had represented. Pak Decl. ¶ 19. That same day, Mr. Pak received the list and forwarded it to Mr. Postman. Id. Mr. Pak states that, “[s]ome time after I began working at Keller Lenkner—I do not recall an exact date,” Mr. Postman told Mr. Pak that Keller Lenkner was evaluating a potential antitrust lawsuit against Facebook. Pak Decl. ¶ 20; Postman Decl. ¶ 15. Mr. Pak and Mr. Postman confirmed that Mr. Pak would not discuss Mr. Pak’s prior work for Facebook and would not discuss Keller Lenkner’s potential new case against Facebook with anyone at Keller Lenkner. Id. On November 11, 2020, a firm-wide email was sent from Keller Lenkner’s managing partner stating that Mr. Pak was screened from, and could not have any involvement in, Keller Lenkner’s potential antitrust case against Facebook. Id. ¶ 21; Postman Decl. ¶ 17. All attorneys were directed not to: speak to Mr. Pak about the potential case or any related issues, save any Facebook-related documents outside of the Facebook workspace on the document management system, or leave physical case materials in open or unlocked areas. Postman Decl. ¶ 17. On November 11, 2020, access to all documents related to Facebook was restricted to exclude Mr. Pak. Id. During an all-firm meeting conducted on December 4, 2020, all attorneys and staff were reminded of this screen and others in place. Id. All attorneys who join Keller Lenkner are informed of this screen and others in place. Id. The main Intranet page for Keller Lenkner attorneys lists this screen and others in place. Id. Mr. Pak has never worked on the instant case. Id. ¶ 22. Mr. Pak has never accessed Keller Lenkner’s internal files on the instant case. Id. Mr. Pak has never discussed the instant case with anyone at Keller Lenkner. Id.; Dravillas Decl. ¶ 2; Ethridge Decl. ¶ 2; Hanna Decl. ¶ 2; Heinz Decl. ¶ 2; Keller Decl. ¶ 2; Longtin Decl. ¶ 2; Postman Decl. ¶ 18; Whiting Decl. ¶ 2; Zweig Decl. ¶ 2. Although Mr. Pak spoke with Mr. Postman about the general nature of his prior work for Facebook for the purpose of Keller Lenkner’s conflicts analysis, Mr. Pak never discussed the substance of that work with anyone at Keller Lenkner. Id. B. Procedural History On December 3, 2020, Quinn Emanuel Urquhart & Sullivan (“Quinn Emanuel”) and Keller Lenkner filed the complaint in the instant case. ECF No. 1. Subsequently, 11 other cases were filed by consumers or advertisers against Facebook. The Court related and consolidated these cases. ECF Nos. 47, 50, 68, 85. On March 18, 2021, the Court held a hearing on motions for appointment as interim class counsel. ECF No. 77. That same day, the Court appointed Stephen A. Swedlow of Quinn Emanuel and Shana A. Scarlett of Hagens Berman Sobol Shapiro LLP as Interim Class Counsel for the consumer class and appointed Warren Postman of Keller Lenkner and Brian D. Clark of Lockridge Grindal Nauen P.L.L.P. to serve on Plaintiffs’ Executive Committee for the consumer class. ECF No. 73. On March 19, 2021, Keller Lenkner gave notice to Facebook regarding Mr. Pak’s prior representation of Facebook in the Facebook government antitrust investigations. Mehta Decl. Exh. B. Specifically, Keller Lenkner emailed Facebook’s counsel and described the screening procedure that was used with respect to Mr. Pak. Id. On April 22, 2021, Plaintiffs filed a Consolidated Consumer Complaint (“CC”) and a Consolidated Advertiser Complaint (“AC”). CC; AC. The CC alleges five causes of action: (1) monopolization of the Social Network Market in violation of § 2 of the Sherman Act; (2) attempted monopolization of the Social Network Market in violation of § 2 of the Sherman Act; (3) monopolization of the Social Medial Market in violation of § 2 of the Sherman Act; (4) attempted monopolization of the Social Media Market in violation of § 2 of the Sherman Act; and (5) unjust enrichment under California common law. CC ¶¶ 260–317. The AC alleges three causes of acti

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