Sebastian Rako v. VMware LLC, et al.

CourtDistrict Court, N.D. California
DecidedNovember 25, 2025
Docket5:25-cv-05142
StatusUnknown

This text of Sebastian Rako v. VMware LLC, et al. (Sebastian Rako v. VMware LLC, et al.) 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
Sebastian Rako v. VMware LLC, et al., (N.D. Cal. 2025).

Opinion

1 2 3 UNITED STATES DISTRICT COURT 4 NORTHERN DISTRICT OF CALIFORNIA 5 6 SEBASTIAN RAKO, Case No. 25-cv-05142-SVK

7 Plaintiff, ORDER ON MOTIONS TO DISMISS 8 v. Re: Dkt. Nos. 17, 18, 44 9 VMWARE LLC, et al., 10 Defendants.

11 I. INTRODUCTION AND BACKGROUND 12 This background discussion is taken primarily from the allegations of the Complaint. 13 Dkt. 1 – “Complaint”. Plaintiff Sebastian Rako, appearing pro se, worked as a sales professional 14 for Defendant VMware LLC (“VMware”) from approximately August 2021 until June 2022. 15 See id. ¶¶ 1, 16, 40. Plaintiff claims that VMware suspended and then terminated his employment 16 after he reported that Defendant Kaiser Aluminum Corporation (“Kaiser”) had defrauded VMware 17 under a license issued by VMware to Kaiser. See id. ¶¶ 1, 33-40. 18 Plaintiff filed the Complaint in this case on June 18, 2025. The Defendants are VMware 19 and its employees Michael Brewster and Jeremy Hoke, and Kaiser and its employees Mike Wood 20 and Tami Mills. The Complaint contains four causes of action: (1) retaliation in violation of the 21 False Claims Act (31 U.S.C. § 3730(h)); (2) retaliation in violation of California Labor Code 22 § 1102.5; (3) civil conspiracy to retaliate against whistleblower and facilitate wire fraud; and 23 (4) wrongful termination in violation of public policy. The first, second, and fourth causes of 24 action are asserted against VMware only. The third cause of action is asserted against all other 25 Defendants. All Parties have consented to the jurisdiction of a magistrate judge. Dkt. 4, 11, 14, 26 46. 27 Now before the Court are three fully-briefed motions to dismiss the Complaint: (1) the 1 dismiss”); (2) the motion to dismiss filed by Kaiser and Wood (Dkt. 18 – “Kaiser motion to 2 dismiss”); and (3) the motion to dismiss filed by Mills (Dkt. 44 – “Mills motion to dismiss”). 3 These motions are suitable for determination without a hearing. Civ. L.R. 7-1(b). For the reasons 4 discussed below, VMware’s motion to dismiss the first cause of action for retaliation in violation 5 of the False Claims Act (“FCA”) is GRANTED WITH LEAVE TO AMEND. VMWare’s 6 motion to dismiss the third (civil conspiracy) and fourth (wrongful termination in violation of 7 public policy) causes of action is also GRANTED WITH LEAVE TO AMEND to the extent 8 those causes of action are based on Plaintiff’s deficient FCA retaliation claim. Because Plaintiff 9 bases his assertion that this Court has original subject matter jurisdiction solely on his FCA 10 claims, the Court does not reach Defendants’ other arguments as to the other causes of action at 11 this time and therefore DENIES WITHOUT PREJUDICE the remaining portions of VMware’s 12 motion to dismiss as well as the motions to dismiss filed by Kaiser and Mills. Defendants may re- 13 assert those arguments as appropriate if Plaintiff files a First Amended Complaint. 14 II. LEGAL STANDARD 15 Federal Rule of Civil Procedure 12(b)(6) authorizes a district court to dismiss a complaint 16 if it fails to state a claim upon which relief can be granted. In ruling on a motion to dismiss, courts 17 may consider only “the complaint, materials incorporated into the complaint by reference, and 18 matters of which the court may take judicial notice.” Metzler Inv. GmbH v. Corinthian Colls., 19 Inc., 540 F.3d 1049, 1061 (9th Cir. 2008). In deciding whether the plaintiff has stated a claim, the 20 court must presume the plaintiff’s allegations are true and draw all reasonable inferences in the 21 plaintiff’s favor. Usher v. City of L.A., 828 F.2d 556, 561 (9th Cir. 1987). However, the court is 22 not required to accept as true “allegations that are merely conclusory, unwarranted deductions of 23 fact, or unreasonable inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 24 2008) (citation omitted). 25 To survive a motion to dismiss, the plaintiff must allege “enough facts to state a claim to 26 relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). This 27 “facial plausibility” standard requires the plaintiff to allege facts that add up to “more than a sheer 1 If a motion to dismiss is granted, the court must grant leave to amend unless it is clear that 2 the complaint’s deficiencies cannot be cured by amendment. Eminence Capital, LLC v. Aspeon, 3 Inc., 316 F.3d 1048, 1052 (9th Cir. 2003). 4 III. DISCUSSION 5 A. COURT ORDER re Plaintiff’s “Notices of Errata” With Regard to Opposition Briefs 6 On September 10, 2025, Plaintiff filed “Notices of Errata” in connection with the briefs he 7 filed in opposition to the VMware and Kaiser motions to dismiss, stating that those opposition 8 briefs contained “inadvertent citation errors.” Dkt. 55, 56. The Notices of Errata were filed 9 almost six weeks after Plaintiff filed the relevant opposition briefs and only after VMware and 10 Kaiser noted in their reply briefs that Plaintiff’s opposition briefs cited non-existing caselaw. 11 See Dkt. 37 at 1; Dkt. 38 at 4-5. Plaintiff’s Notices of Errata provided “corrected” citations, which 12 in most instances differed substantially from the original citations, including the case names, 13 issuing courts, and dates. Id. 14 Although the Court recognizes that Plaintiff came forward and attempted to correct the 15 record, it is concerned that Plaintiff may have relied on Artificial Intelligence (“AI”) to identify 16 legal authorities without checking that the authorities exist and were accurately characterized. 17 Under the circumstances of this case, the Court finds it appropriate to ORDER as follows: 18 Parties, including pro se parties, and counsel shall not file or otherwise present to the Court 19 any briefs, pleadings, materials, other documents, or argument which contain AI-hallucinated 20 citations to law, case or legal citations which are fictitious or non-existent, or any assertions of law 21 or fact that cannot be corroborated. The failure of a pro se party or counsel to confirm or double- 22 check the accuracy, veracity, or even existence of a case or legal citation (or assertion of fact) 23 created by an AI tool is grounds for potential sanctions. In light of Plaintiff’s previous citations to 24 non-existent cases in this litigation, IN ALL FUTURE FILINGS IN THIS CASE, PLAINTIFF 25 MUST INCLUDE A FOOTNOTE FOR EACH CITATION LOCATED THROUGH AI 26 CONFIRMING THAT THE CITED AUTHORITY WAS LOCATED THROUGH AI AND 27 THAT PLAINTIFF HAS VERIFIED THE EXISTENCE AND ACCURACY OF THE 1 CITATION BEFORE INCLUDING IT IN HIS FILING. This information shall appear in a 2 footnote for each such citation, as follows: “Located through AI; Checked.” This requirement 3 applies to any cited authority Plaintiff locates using any tool labelled as AI, generative AI, 4 language model, natural language processing tool, machine learning tool, artificial neural network, 5 deep learning neural network, or any other automated generator of text. 6 B. First Cause of Action: Retaliation in violation of False Claims Act (31 U.S.C. § 3730

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