Rosenow v. Facebook, Inc.

District Court, S.D. California·Decided April 27, 2020·No. 3:19-cv-01297·Unknown

Opinion

CARSTEN ROSENOW, Case No.: 19-cv-1297-WQH-MDD

Plaintiff, ORDER v. FACEBOOK, INC.; and YAHOO, INC., Defendants. HAYES, Judge: The matters before the Court are the Motions to Dismiss Plaintiff’s Complaint filed by Defendants Facebook, Inc. (“Facebook”) (ECF No. 7), and Yahoo, Inc. (“Yahoo”)1 (ECF No. 8). On June 21, 2017, Carsten Rosenow was arrested at the San Diego airport and placed in federal custody. On July 19, 2017, an information was filed charging Rosenow with one

1 Oath Holdings, Inc., asserts that Plaintiff Rosenow erroneously named Yahoo, Inc., as a Defendant. Oath Holdings, Inc., states: Effective June 12, 2017, Defendant Yahoo! Inc. transferred to Yahoo Holdings, Inc. all liabilities relevant to Plaintiff’s claims. Yahoo Holdings Inc. thereafter changed its name to Oath Holdings Inc. Defendant Yahoo! Inc. no longer owns any interest in the past, present, or future liabilities relevant to this lawsuit.

count of travel with intent to engage in illicit sexual conduct in violation of 18 U.S.C. § 2423(b). (USA v. Rosenow, 3:17-cr-01937-WQH, ECF No. 20). On October 19, 2017, a three-count indictment was filed charging Rosenow with one count of attempted sexual exploitation of a child in violation of 18 U.S.C. § 2251(c); one count of travel with intent to engage in illicit sexual conduct in violation of 18 U.S.C. § 2423(b); and one count of possession of images of minors engaged in sexually explicit conduct in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2). (USA v. Rosenow, 3:17-cr-03430-WQH, ECF No. 1). On March 19, 2018, Rosenow filed a Motion to Suppress Evidence in his criminal case. (Id., ECF No. 29). Rosenow moved the Court to suppress all of the evidence against him pursuant to the Fourth Amendment of the United States Constitution, contending that “[u]ltimately, all of the evidence against Mr. Rosenow is the result of warrantless searches of his private communications [by Facebook and Yahoo]—searches that were ‘government action’ on these facts.” (Id., ECF No. 29-1 at 9). On July 27, 2018, and August 8, 2018, the Court held an evidentiary hearing on Rosenow’s Motion to Suppress Evidence. (Id., ECF Nos. 72, 73). On September 10, 2018, Rosenow filed Supplemental Briefing in support of his Motion to Suppress Evidence. (Id., ECF No. 76). On November 20, 2018, the Court issued an Order denying Rosenow’s Motion to Suppress Evidence. (Id., ECF No. 87). The Court found that Yahoo and Facebook were not government actors and that Yahoo and Facebook conducted investigations in their own interest, in accordance with their internal policies and procedures. The Court found that law enforcement conducted an investigation independent of Yahoo and Facebook and utilized the information provided by Yahoo and Facebook in compliance with all applicable laws. The Court further found that “Yahoo and Facebook reported information to NCMEC pursuant to applicable law based upon facts and circumstances supporting an apparent violation of child pornography laws.” (Id., ECF No. 87 at 23). The Court held a jury trial in August 2019. On August 30, 2019, a jury returned a verdict finding Rosenow guilty on counts one and three of the indictment, for attempted sexual exploitation of a child in violation of 18 U.S.C. § 2251(c) and (e) and possession of images of minors engaged in sexually explicit conduct in violation of 18 U.S.C. § 2252(a)(4)(B). (Id., ECF No. 198). On March 3, 2020, the Court sentenced Rosenow to 300 months imprisonment. (Id., ECF No. 247). On February 27, 2020, Rosenow filed a Notice of Appeal. (Id., ECF No. 239). On July 12, 2019, Rosenow, proceeding pro se, filed the civil Complaint against Defendants Facebook and Yahoo. (ECF No. 1). Rosenow brings claims against Defendants for negligence and for violations of the Stored Communications Act, 18 U.S.C. § 2702; the Wiretap Act, 18 U.S.C. § 2520; and the California Invasion of Privacy Act, Cal. Pen. Code § 631. Rosenow seeks general and compensatory damages, civil penalties, and attorneys’ fees and costs. On November 15, 2019, Defendants filed Motions to Dismiss Plaintiff’s Complaint and Requests for Judicial Notice. (ECF Nos. 7-9). On December 9, 2019, Rosenow filed an Opposition to Defendants’ Motions to Dismiss. (ECF No. 12). On December 16, 2019, Defendants filed Replies. (ECF No. 13, 14). In September 2014, internet company “Xoom” advised Defendant Yahoo “that certain Yahoo accounts were potentially involved in illegal activity involving minors.” (ECF No. 1 ¶ 7). Yahoo searched the electronic communications of the accounts identified by Xoom. As a result of these searches, Yahoo “discovered various account holders who allegedly either bought or sold child pornography.” (Id. ¶ 11). In October 2014, Yahoo created a report that identified the account holders Yahoo suspected bought or sold child pornography. The report included the contents of private communications, contact lists, IP information, and metadata. Yahoo provided this report to the National Center for Missing and Exploited Children (“NCMEC”). Rosenow was not identified in the October 2014 report. While the Federal Bureau of Investigation (“FBI”) was serving subpoenas related to the Yahoo accounts identified in the October 2014 report, Yahoo searched Rosenow’s accounts, emails, and chat messages. During this process, Sean Zadig—a Yahoo employee in the E-Crimes Investigation Team and former law enforcement officer—“communicated and worked closely” with the FBI in San Diego. (Id. ¶ 17). After Yahoo and Zadig reviewed Rosenow’s electronic communications, Yahoo submitted a supplemental report to NCMEC that contained “the contents of Plaintiff’s electronic communications and record information, and implicated Plaintiff in traveling internationally for the purpose of soliciting minors.” (Id. ¶ 20). In July 2015, Yahoo gave the FBI notice that it would be performing more account searches. Yahoo “gathered Plaintiff’s entire chat history, and yielded more evidence that allegedly incriminated Plaintiff.” (Id. ¶ 29). In December 2015, Yahoo provided NCMEC with more of Rosenow’s chat messages. The FBI relied on the information Yahoo provided to “attempt to obtain a search warrant for Plaintiff’s Yahoo accounts.” (Id. ¶ 42). The U.S. Attorney’s Office refused to authorize a search warrant. Rosenow’s “Yahoo accounts never contained any evidence of solicitation, receipt, or exchange of child pornography.” (Id. ¶ 36). In early 2017, the FBI sent Defendant Facebook a request to preserve Rosenow’s private Facebook profile. In March 2017, “the FBI in San Diego served an administrative subpoena on Facebook requesting the details of Plaintiff’s Facebook accounts.” (Id. ¶ 45). Facebook searched Rosenow’s Facebook accounts, messages, and communications, even though the FBI did not have a warrant for the search. After this search, Facebook reported to NCMEC that it “had allegedly discovered evidence of child exploitation on Plaintiff’s accounts.” (Id. ¶ 49). The report included Rosenow’s messages and communications. Rosenow’s Facebook accounts “never contained any

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Rosenow v. Facebook, Inc., (S.D. Cal. 2020).

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