Rosenman v. Facebook Inc.

CourtDistrict Court, N.D. California
DecidedAugust 27, 2021
Docket3:21-cv-02108
StatusUnknown

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

Bluebook
Rosenman v. Facebook Inc., (N.D. Cal. 2021).

Opinion

8 UNITED STATES DISTRICT COURT

9 NORTHERN DISTRICT OF CALIFORNIA 10 SAN JOSE DIVISION 11

12 SHARI ROSENMAN, Case No. 21-CV-02108-LHK

13 Plaintiff, ORDER DENYING MOTION TO REMAND 14 v. Re: Dkt. No. 17 15 FACEBOOK INC., 16 Defendant. 17 On February 22, 2021, Plaintiff Shari Rosenman (“Plaintiff”), individually and on behalf 18 of all others similarly situated, sued Defendant Facebook, Inc. (“Facebook”), in the California 19 Superior Court for the County of San Mateo for violations of California’s Unfair Competition 20 Law, Cal. Bus. & Prof. Code §§ 17200, et seq., and unjust enrichment. ECF No. 1 Exh. B. On 21 March 25, 2021, Facebook removed the instant case to federal court based on federal question 22 jurisdiction. See ECF No. 1. Before the Court is Plaintiff’s motion to remand the instant case to 23 the California Superior Court for the County of San Mateo. ECF No. 17. Having considered the 24 submissions of the parties, the relevant law, and the record in this case, the Court DENIES 25 Plaintiff’s motion to remand. 26 I. BACKGROUND 27 A. Factual Background 1 Plaintiff alleges that Facebook “is by far the biggest social network in the United States.” 2 ECF No. 1 Exh. B (“Compl.”) ¶ 1. According to Plaintiff, “Ninety-Nine percent of adults in the 3 U.S. that use social media use Facebook.” Id. ¶ 17. Plaintiff alleges that “Facebook itself boasted 4 in 2011 that ‘Facebook is now 95% of all social media.’” Id. ¶ 15. 5 Plaintiff alleges that “Facebook’s popularity gives it wide latitude to set the terms for how 6 its users’ private information is collected, used, and protected and the privacy protections afforded 7 to its users.” Id. ¶ 19. Plaintiff alleges that, as a result, “[c]onsumers effectively face a singular 8 choice: either to use Facebook and submit to the quality and stipulations of Facebook’s product or 9 forgo all use of the only social network used by most of their friends, family, and acquaintances.” 10 Id. ¶ 17. 11 According to Plaintiff, Facebook initially distinguished itself from other social networks 12 on the basis of its privacy practices. Id. ¶ 20. Facebook allegedly “tried to backslide on its privacy 13 commitments, but it faced discipline from competitors that it still had not cornered.” Id. ¶ 21. 14 However, once Facebook overtook its rivals, Facebook allegedly “leveraged its popularity to 15 successfully degrade privacy to levels unsustainable in the earlier market when Facebook and its 16 competition were subject to consumer privacy demands.” Id. ¶ 20. 17 Plaintiff alleges that, “[w]ith nearly every privacy policy update, Facebook steadily 18 increased the richness of the user data it allowed itself to collect and retain and expanded what it 19 could do with the data.” Id. ¶ 28. For example, “by 2011, Facebook’s privacy policy allowed 20 enhanced third-party tracking, permitting Facebook to collect data when users visited a site with 21 Facebook features.” Id. In addition, “[b]y 2012, Facebook had abandoned a previous pledge to 22 anonymize user data received by Facebook’s advertising partners and customers within 180 days.” 23 Id. ¶ 29. Furthermore, “[b]y 2015, Facebook had abandoned its previous promise to collect 24 payment account numbers only with user consent.” Id. ¶ 30. 25 Plaintiff alleges that “users exchange their time, attention, and personal data for access to 26 Facebook’s services.” Id. ¶ 38. Plaintiff alleges that, rather than raising prices, Facebook harmed 27 1 consumers “by charging them the use of ever-increasing amounts of their personal data to use its 2 platform.” Id. ¶ 39. According to Plaintiff, “Facebook’s conduct has caused consumers to suffer 3 and to continue to suffer substantial economic injury through the degradation of their privacy.” Id. 4 ¶ 40. 5 B. Procedural History 6 On December 14, 2020, Plaintiff sued Facebook in the California Superior Court for the 7 County of San Mateo for violation of California’s Unfair Competition Law (“UCL”), Cal. Bus. & 8 Prof. Code §§ 17200, et seq., and unjust enrichment. See Rosenman v. Facebook, Case No. 21- 9 CV-00336-LHK, ECF No. 1 Exh. B. Plaintiff’s class was defined as “[a]ll persons or entities who 10 maintained a Facebook profile at any time within four years of the date of the filing of this action.” 11 Id. ¶ 47. 12 On January 13, 2021, Facebook removed Plaintiff’s case to this Court. See Rosenman v. 13 Facebook, Case No. 21-CV-00336-LHK, ECF No. 1. Facebook asserted that this Court had 14 jurisdiction based on the Class Action Fairness Act and federal question jurisdiction. Id. 15 On February 9, 2021, this Court granted Facebook’s motion to relate Rosenman v. 16 Facebook to Klein v. Facebook. See Klein v. Facebook, Case No. 20-CV-8570-LHK, ECF No. 47. 17 On February 11, 2021, Plaintiff voluntarily dismissed her case without prejudice. See Rosenman v. 18 Facebook, Case No. 21-CV-00336-LHK, ECF No. 17. 19 On February 22, 2021, Plaintiff filed the instant case against Facebook in the California 20 Superior Court for the County of San Mateo for violations of the UCL and unjust enrichment. ECF 21 No. 1 Exh. B. Plaintiff seeks to represent a class of “[a]ll California citizens who, while citizens of 22 the State of California, maintained a Facebook profile at any time within four years of the date of 23 the filing of this action.” Id. ¶ 50. 24 On March 25, 2021, Facebook removed the instant case to federal court based on federal 25 question jurisdiction. See ECF No. 1. On April 9, 2021, the Court granted Facebook’s motion to 26 relate the instant case to Klein v. Facebook. See Klein v. Facebook, Case No. 20-CV-8570-LHK, 27 ECF No. 47. 1 On April 26, 2021, Plaintiff filed the instant motion to remand. ECF No. 17 (“Mot.). On 2 May 26, 2021, Facebook filed an opposition. ECF No. 20 (“Opp’n”). On June 25, 2021, Plaintiff 3 filed a reply. ECF No. 21 (“Reply”). 4 II. LEGAL STANDARD 5 A suit may be removed from state court to federal court only if the federal court would 6 have had subject matter jurisdiction over the case. 28 U.S.C. § 1441(a); see Caterpillar Inc. v. 7 Williams, 482 U.S. 386, 392 (1987) (“Only state-court actions that originally could have been filed 8 in federal court may be removed to federal court by the defendant.”). If it appears at any time 9 before final judgment that the federal court lacks subject matter jurisdiction, the federal court must 10 remand the action to state court. 28 U.S.C. § 1447(c). 11 The party seeking removal bears the burden of establishing federal jurisdiction. Provincial 12 Gov’t of Marinduque v. Placer Dome, Inc., 582 F.3d 1083, 1087 (9th Cir. 2009). “The removal 13 statute is strictly construed, and any doubt about the right of removal requires resolution in favor 14 of remand.” Moore-Thomas v. Alaska Airlines, Inc., 553 F.3d 1241, 1244 (9th Cir. 2009) (citing 15 Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992)). 16 III. DISCUSSION 17 “Absent diversity of citizenship, federal-question jurisdiction is required.” Caterpillar, 482 18 U.S. at 392. Under 28 U.S.C. § 1331, federal courts have original jurisdiction over civil actions 19 “arising under the Constitution, laws, or treaties of the United States.” Federal question 20 jurisdiction “is determined (and must exist) as of the time the complaint is filed and removal is 21 effected.” Strotek Corp. v. Air Transp.

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