Lin v. TipRanks, Ltd.

CourtDistrict Court, D. Massachusetts
DecidedNovember 21, 2019
Docket1:19-cv-11517
StatusUnknown

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

Bluebook
Lin v. TipRanks, Ltd., (D. Mass. 2019).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

CHING-YI LIN, * * Plaintiff, *

* Civil Action No. 1:19-cv-11517-ADB v. *

*

TIPRANKS, LTD., * * Defendant. *

MEMORANDUM AND ORDER ON DEFENDANT’S MOTION TO DISMISS

BURROUGHS, D.J. In this defamation suit, Plaintiff Ching-Yi Lin (“Lin”) alleges that Defendant TipRanks, Ltd. (“TipRanks”) wrongfully ranked her extremely low on its financial analyst performance website, which prevented her from obtaining employment as an analyst for almost three years. [ECF No. 1-1 (“Complaint” or “Compl.”) at 8–11]. Lin brought this suit in the Massachusetts Superior Court for Suffolk County on April 17, 2019 and on July 11, 2019, TipRanks removed the case to this Court. [ECF No. 1 at 1]. TipRanks then moved to dismiss for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2). [ECF No. 10]. Lin opposed the motion to dismiss. [ECF No. 14]. For the reasons stated below, TipRanks’ motion to dismiss [ECF No. 10] is GRANTED. I. BACKGROUND This summary draws from allegations in the Complaint and attestations in the affidavits submitted by the parties. Lin was domiciled in Massachusetts from October 2015 until August 2016, although she now resides in New York. [ECF No. 14-2 ¶¶ 1, 3, 4].1 Lin is an equity

1 There are two paragraphs numbered (3) in Lin’s Affidavit. research analyst who advises investors on whether to purchase or sell shares of biotech companies. [Id. ¶ 2]. TipRanks is an Israeli technology company that operates its website exclusively from Israel. [ECF No. 11 at 1]. TipRanks “aggregates and analyzes the financial data that is publicly available online to provide a data-driven measure of accuracy based on the

statistical ability of an expert to generate profits from investment recommendations.” [ECF No. 12 ¶ 2]. TipRanks uses this information to rank financial analysts based on their performance. These rankings are then “ma[de] available for free on its website,” where they can be accessed anywhere and viewed by anyone, including in Massachusetts and by Massachusetts residents. [Id. ¶ 3]. Visitors accessing TipRanks’ website also have the option to subscribe to TipRanks’ premium services for an annual fee, which provides full access to TipRanks’ stock market research tools. [ECF No. 14-1 ¶ 6]. TipRanks is not registered to do business in Massachusetts, has no employees in Massachusetts, does not maintain an office or own any personal or real property in Massachusetts, and does not derive “substantial revenue” from business in Massachusetts. [ECF No. 11 at 3].

As of 2018, Lin was ranked 4,771 out of 4,832 analysts on TipRanks’ website. [Compl. at 9]. Lin contends that her ranking was “erroneous” because it was based on two stocks that she had never covered and on stock at a company that did not yet exist at the time her ranking was published. [ECF No. 14-2 ¶ 9].2 Between November 2015 and August 2016, Lin “applied to at least 100 jobs in the Boston area,” with no success. [Id. ¶¶ 4–8]. She “would have a series of favorable interviews and then, mysteriously, find herself dropped by companies to which she had tendered applications.” [Compl. at 9]. In 2018, she learned of her poor ranking on TipRanks and shortly thereafter requested that TipRanks remove her ranking. [Id. at 10]. TipRanks agreed

2 There are two paragraphs numbered (9) in Lin’s Affidavit. to remove Lin’s ranking from its website. [Id.]. Once Lin’s ranking no longer appeared in a Google search for her name, she received a job offer within a month. [ECF No. 14-2 ¶ 9]. Lin now claims that “the erroneous statements on the TipRanks website . . . damage[d] [her] reputation in the stock analyst community” and were “sufficient to deter potential employers

from hiring [her].” [Compl. at 10]. This, in turn, “caused [her] economic loss, and prejudiced her profession, all to her damage.” [Id.]. II. STANDARD OF REVIEW Lin bears the burden of establishing that specific jurisdiction exists over TipRanks. A Corp. v. All Am. Plumbing, Inc., 812 F.3d 54, 58 (1st Cir. 2016) (citing Phillips v. Prairie Eye Ctr., 530 F.3d 22, 26 (1st Cir. 2008)). “When a district court rules on a motion to dismiss for lack of personal jurisdiction without holding an evidentiary hearing . . . , the ‘prima facie’ standard governs its determination.” United States v. Swiss Am. Bank, Ltd., 274 F.3d 610, 618 (1st Cir. 2001). Under the prima facie standard, the plaintiff must proffer “evidence which, if credited, is sufficient to support findings of all facts essential to personal jurisdiction.” A Corp.,

812 F.3d at 58 (quoting Prairie Eye Ctr., 530 F.3d at 26). “[P]laintiffs may not rely on unsupported allegations in their pleadings,” and are instead “obliged to adduce evidence of specific facts” supporting jurisdiction. Platten v. HG Berm. Exempted Ltd., 437 F.3d 118, 134 (1st Cir. 2006) (first quoting Boit v. Gar-Tec Prods., Inc., 967 F.2d 671, 675 (1st Cir. 1992), then quoting Foster-Miller, Inc. v. Babcock & Wilcox Can., 46 F.3d 138, 145 (1st Cir. 1995)). The Court takes as true whatever properly documented facts a plaintiff proffers, construes those facts in the light most favorable to the plaintiff, and considers facts put forward by the defendant to the extent they are uncontradicted. See Prairie Eye Ctr., 530 F.3d at 26; Platten, 437 F.3d at 134. III. DISCUSSION “To establish personal jurisdiction in a diversity case, a plaintiff must satisfy both the forum state’s long-arm statute and the Due Process Clause of the Fourteenth Amendment.” C.W. Downer & Co. v. Bioriginal Food & Sci. Corp., 771 F.3d 59, 65 (1st Cir. 2015) (citing

Ticketmaster-N.Y., Inc. v. Alioto, 26 F.3d 201, 204 (1st Cir. 1994)). The Due Process Clause of the Fourteenth Amendment allows a state court to exercise personal jurisdiction over a nonresident only where the exercise of jurisdiction “does not offend ‘traditional notions of fair play and substantial justice.’” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945) (citations omitted). Massachusetts also articulates requirements for when courts may exercise personal jurisdiction over nonresidents through its long-arm statute. Because “the long-arm statute imposes specific constraints on the exercise of personal jurisdiction that are not coextensive with the parameters of due process . . . a determination under the long-arm statute is to precede consideration of the constitutional question.” SCVNGR, Inc. v. Punchh, Inc., 85 N.E.3d 50, 52 (Mass. 2017); see also Cossart v. United Excel Corp., 804 F.3d 13, 18 (1st Cir. 2015) (“The

requirements of the Massachusetts long-arm statute are similar to—although not necessarily the same as—those imposed by the Due Process Clause.”). A. Massachusetts Long-Arm Statute Section 3(c) of the Massachusetts long-arm statute allows for the exercise of “personal jurisdiction over a person, who acts directly or by an agent, as to a cause of action in law or equity arising from the person’s . . . causing tortious injury by an act or omission in this commonwealth.” Mass. Gen. Laws ch.

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