Stuart Force v. Facebook, Inc.
This text of 304 F. Supp. 3d 315 (Stuart Force v. Facebook, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
NICHOLAS G. GARAUFIS, United States District Judge
Plaintiffs in the above-captioned action are the victims, estates, and family members of victims of terrorist attacks in Israel. (1st Am. Compl. ("FAC") (Dkt. 28).) They assert various claims against Facebook, Inc. ("Facebook") based on their contention that Facebook has supported the terrorist organization Hamas by allowing that group and its members and supporters to use Facebook's social media platform to further their aims.
On May 18, 2017, the court dismissed Plaintiffs' first amended complaint without prejudice for failure to state a claim upon which relief may be granted.1 (May 18, 2017, Mem. & Order ("May 18 M & O") (Dkt. 48).) Before the court are Plaintiffs' motions to alter the judgment dismissing the first amended complaint (Mot. to Alter J. ("Recons. Mot.") (Dkt. 50) ) and for leave to file a second amended complaint (Mot. for Leave to File 2d Am. Compl. ("Amendment Mot.") (Dkt. 52) ). For the following reasons, the court DENIES both motions.
I. BACKGROUND
The court assumes familiarity with Plaintiffs' allegations and the court's prior decision granting Facebook's motion to dismiss Plaintiffs' first amended complaint. (See May 18 M & O.) In that opinion, the court specified that the dismissal was without prejudice. (Id. at 28.) On June 15, 2017, Plaintiffs filed two motions: first, a motion to alter the judgment, "retracting [the May 18 M & O] and issuing a modified opinion denying Facebook's motion to dismiss" (Recons. Mot.); and second, a motion for leave to file a second amended complaint, a copy of which Plaintiffs appended to their memorandum in support of that motion (Amendment Mot.; see also Proposed 2d Am. Compl. ("PSAC") (Dkt. 53-1) ).
II. DISCUSSION
A. Motion to Alter the Judgment
Plaintiffs ask the court to reconsider its dismissal of the first amended complaint.
*319The court concluded that all of the claims contained therein were barred by Section 230(c)(1) ("Section 230") of the Communications Decency Act ("CDA"),
Plaintiffs contend that the court erred both in its determination that Section 230 applied to the claims raised in the first amended complaint and that the application of that law to those claims was not impermissibly extraterritorial. They seek reconsideration and rescission of the opinion dismissing their complaint pursuant to Rule 59(e) of the Federal Rules of Civil Procedure. For the reasons that follow, the court sees no reason to reconsider its previous decision dismissing the first amended complaint.
1. Legal Standard
"A motion for reconsideration should be granted only when the [moving party] identifies 'an intervening change of controlling law, the availability of new evidence, or the need to correct a clear error or prevent manifest injustice.' " Kolel Beth Yechiel Mechil of Tartikov, Inc. v. YLL Irrevocable Tr.,
2. Application
Plaintiffs argue that the court erred in (1) determining that the "focus" of Section 230 was on the "limitation of liability;" and (2) applying Section 230 to the claims against Facebook and, particularly, to claims raised under the Anti-Terrorism Act ("ATA") and Israeli law. (See generally Mem. in Supp. of Mot. for Recons. ("Recons. Mem." (Dkt. 51).) ) The court addresses these arguments in turn.
*320a. "Focus" of Section 230
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NICHOLAS G. GARAUFIS, United States District Judge
Plaintiffs in the above-captioned action are the victims, estates, and family members of victims of terrorist attacks in Israel. (1st Am. Compl. ("FAC") (Dkt. 28).) They assert various claims against Facebook, Inc. ("Facebook") based on their contention that Facebook has supported the terrorist organization Hamas by allowing that group and its members and supporters to use Facebook's social media platform to further their aims.
On May 18, 2017, the court dismissed Plaintiffs' first amended complaint without prejudice for failure to state a claim upon which relief may be granted.1 (May 18, 2017, Mem. & Order ("May 18 M & O") (Dkt. 48).) Before the court are Plaintiffs' motions to alter the judgment dismissing the first amended complaint (Mot. to Alter J. ("Recons. Mot.") (Dkt. 50) ) and for leave to file a second amended complaint (Mot. for Leave to File 2d Am. Compl. ("Amendment Mot.") (Dkt. 52) ). For the following reasons, the court DENIES both motions.
I. BACKGROUND
The court assumes familiarity with Plaintiffs' allegations and the court's prior decision granting Facebook's motion to dismiss Plaintiffs' first amended complaint. (See May 18 M & O.) In that opinion, the court specified that the dismissal was without prejudice. (Id. at 28.) On June 15, 2017, Plaintiffs filed two motions: first, a motion to alter the judgment, "retracting [the May 18 M & O] and issuing a modified opinion denying Facebook's motion to dismiss" (Recons. Mot.); and second, a motion for leave to file a second amended complaint, a copy of which Plaintiffs appended to their memorandum in support of that motion (Amendment Mot.; see also Proposed 2d Am. Compl. ("PSAC") (Dkt. 53-1) ).
II. DISCUSSION
A. Motion to Alter the Judgment
Plaintiffs ask the court to reconsider its dismissal of the first amended complaint.
*319The court concluded that all of the claims contained therein were barred by Section 230(c)(1) ("Section 230") of the Communications Decency Act ("CDA"),
Plaintiffs contend that the court erred both in its determination that Section 230 applied to the claims raised in the first amended complaint and that the application of that law to those claims was not impermissibly extraterritorial. They seek reconsideration and rescission of the opinion dismissing their complaint pursuant to Rule 59(e) of the Federal Rules of Civil Procedure. For the reasons that follow, the court sees no reason to reconsider its previous decision dismissing the first amended complaint.
1. Legal Standard
"A motion for reconsideration should be granted only when the [moving party] identifies 'an intervening change of controlling law, the availability of new evidence, or the need to correct a clear error or prevent manifest injustice.' " Kolel Beth Yechiel Mechil of Tartikov, Inc. v. YLL Irrevocable Tr.,
2. Application
Plaintiffs argue that the court erred in (1) determining that the "focus" of Section 230 was on the "limitation of liability;" and (2) applying Section 230 to the claims against Facebook and, particularly, to claims raised under the Anti-Terrorism Act ("ATA") and Israeli law. (See generally Mem. in Supp. of Mot. for Recons. ("Recons. Mem." (Dkt. 51).) ) The court addresses these arguments in turn.
*320a. "Focus" of Section 230
Plaintiffs first argue that the court erred in concluding that the presumption against extraterritoriality did not preclude application of Section 230 to the allegations raised in the first amended complaint. Plaintiffs take particular issue with the court's determination that Section 230's "focus" was on that section's "limitation on liability." (Recons. Mem. at 4 (quoting May 18 M & O at 25).) Plaintiffs argue both that the court's identification of the statutory "focus" was based on an overly narrow focus on the provision at issue in this litigation, Section 230(c)(1) (Recons. Mem. at 4-5), and that the court's conclusion that the statute's focus is on liability "wrongly conflates the effect of a statute with its focus," which is on the actions of interactive computer providers (id. at 5-8).
Plaintiffs' arguments on this point do not come close to meriting reconsideration. The court notes that Plaintiffs at no point attempted to raise either of these arguments in their opposition to Facebook's motion to dismiss; in fact, the portions of Plaintiffs' brief discussing extraterritoriality do not even mention the word "focus." (See Pls. Mem. in Opp'n to Mot. to Dismiss ("Pls. MTD Opp'n") (Dkt. 40) at 30-31.) Plaintiffs provide no reason why they could not have presented such arguments in their initial briefing, and such new arguments have no place in a motion for reconsideration. See, e.g., Schoolcraft,
Moreover, Plaintiffs identify no contrary authority that the court overlooked or misapplied, as is normally required to obtain reconsideration. See Analytical Surveys,
Plaintiffs' second argument-that the court's holding that Section 230's focus is on limiting liability "wrongly conflates the effect of a statute with its focus" (Recons. Mem. at 6-7)-is likewise unsupported by any contrary authority. Plaintiffs wave their hands at two recent Supreme Court decisions contemplating statutes other than the CDA and purport to draw from those decisions the proposition that "no statute's focus can ever be to simply limit liability." (Id. at 6-7 (citing Morrison v. Nat'l Austl. Bank Ltd.,
*321b. The Scope of the CDA
Plaintiffs next argue that the court misapplied Section 230 to their claims against Facebook. (Recons. Mem. at 8-17.) Plaintiffs make two separate arguments: first, that the court failed to consider Plaintiffs' allegations and arguments that Facebook acted as an "information content provider," independent of content provided by Hamas-affiliated users (id. at 11-14); and second, that the court incorrectly extended Section 230's coverage to "valuable services" provided by Facebook (id. at 14-17). The court examines these arguments separately.
i. Facebook's Role as "Information Content Provider"
Plaintiffs first contend that the court failed to address their contention that Facebook acted as an "information content provider" within the meaning of Section 230 and could not claim protection under that section. As noted in the court's original decision, the protection afforded by Section 230 applies only to claims "based on information provided by [an] information content provider" other than the defendant. (May 18 M & O at 18-19 (quoting FTC v. LeadClick Media, LLC,
Plaintiffs' contention is completely disingenuous. In the current motion, Plaintiffs acknowledge in a footnote that "perhaps plaintiffs could have made their reliance on Facebook's productive conduct clearer in their briefing" but attribute this oversight to Facebook's supposed failure to argue that it was not a content provider. (Recons. Mot. at 12 & n.9.) Plaintiffs' contention is flatly refuted by Facebook's briefing on the original motion to dismiss, which clearly argued that all of the offending content cited in Plaintiffs' complaint was "provided by another information content provider, not by Facebook itself." (Def. Mem. in Supp. of MTD (Dkt. 35) at 17-18.) Plaintiffs did not respond to this argument at any point, and in fact began their opposition memorandum by stating that "[t]hese cases do not concern speech or content." (Pls. MTD Opp'n at 1.) For Plaintiffs to now turn around and argue that its allegations are largely about content that Facebook itself created borders on mendacious. More to the point, this entirely new argument in support of liability is not suitably considered on a motion for reconsideration, which "may not be used to advance new facts, issues or arguments not previously presented to the Court." See Montblanc-Simplo GmbH v. Colibri Corp.,
ii. Facebook's Conduct as "Speaker or Publisher"
Plaintiffs next contend that the court "misapprehended" the scope of their claims in failing to consider Plaintiffs' allegation that Facebook "provided ... terrorists with valuable services unrelated to publication ... that do not fall within the traditional role of a publisher." (Recons. Mem. at 16.) In particular, Plaintiffs contend that they are suing Facebook for "developing, encouraging, and facilitating connections between terrorists," and not simply based on its failure to "police its accounts" and remove terrorist-affiliated users. (Id. )
In the court's view, however, it has already addressed Plaintiffs' argument and need not revisit its conclusions on that *322point. It is true that the court's previous opinion focused largely on whether Facebook's provision of accounts to Hamas-affiliated users could meaningfully be separated from its role as a "publisher or speaker" of content produced by users, with the court concluding that "Facebook's choices as to who may use its platform are inherently bound up in its decisions as to what may be said on its platform, and so liability imposed based on its failure to remove users would equally "derive[ ] from [Facebook's] status or conduct as a 'publisher or speaker.' " (May 18 M & O at 21 (quoting LeadClick Media,
c. Interplay Between the CDA and the ATA
Plaintiffs next argue that, even if Section 230 would otherwise apply to the challenged conduct, it cannot apply here because such application "would be in direct conflict with the ATA." (Recons. Mem. at 19.) Though presented in several ways, Plaintiffs' essential argument is two part: (1) the ATA's goal of imposing expansive civil liability for harms resulting from terrorism is at odds with immunity under Section 230 ; and (2) because the ATA was adopted and amended after the CDA, it supersedes Section 230. (Id. at 17-23.)
At the outset, the court notes that it is skeptical that this argument is properly raised in the instant motion, as it can hardly be said to have been fully presented previously. Plaintiffs first advanced this argument in a single line in a footnote in their brief opposing Facebook's motion to dismiss. (See Pls. MTD Opp'n at 27 n.6 ("Even if there were a conflict between the limited immunity granted by the CDA and the liability imposed by the ATA, the ATA would control as its later enactment would be a tacit limiting of the CDA.").) Expanding this line to encompass five pages of their present briefing seems to the court to be the very definition of impermissibly "advanc[ing] ... arguments not previously presented to the court." Schoolcraft,
Even if Plaintiffs' argument is not waived, however, it is meritless. Quoting from the preamble to the most recent amendment to the ATA, Plaintiffs contend that immunizing Facebook under Section 230 frustrates Congress's purpose of "provid[ing] civil litigants with the broadest *323possible basis ... to seek relief against entities ... that have provided material support, whether directly or indirectly, to foreign organizations or persons that engage in terrorist activities."3 (Recons. Mem. at 21 (quoting Justice Against Sponsors of Terrorism Act ("JASTA"), § 2(b), Pub. L. No. 114-222,
"When it is claimed that a later enacted statute creates an irreconcilable conflict with an earlier statute, the question is whether the later statute, by implication, has repealed all or, more typically, part of the earlier statute." Garfield v. Ocwen Loans Servicing, LLC,
The court sees no reason to conclude that the ATA impliedly abrogated Section 230, as each statute can be enforced without depriving the other of "any meaning at all." Id. at 662,
In contrast to the direction provided by the Supreme Court and Second Circuit to *324act cautiously in inferring statutory repeal, Plaintiffs urge an approach that would treat any statute that imposes liability and which was enacted after the CDA as implicitly limiting the reach of Section 230 absent an affirmative contrary statement. This approach would effectively reverse the presumption against inferring repeal and is patently inconsistent with the law outlined above.4
Accordingly, the court sees no reason to conclude that the ATA implicitly limited or repealed Section 230 or any other part of the CDA or to reconsider its prior opinion on that basis.
d. Application of the CDA to Plaintiffs' Israeli Law Claims
Plaintiffs' final argument is that the court erred in applying Section 230 to Plaintiffs' Israeli-law claims. (Recons. Mem. at 24-25.) Plaintiffs argue that court should have conducted a conflict-of-laws analysis, which would have demonstrated that Israeli (as opposed to New York) law applied to a number of Plaintiffs' claims. (Id. at 24-25.) From this, Plaintiffs contend that the court should not have applied Section 230 to the Israeli law claims, as the CDA "is a feature of American law that has no corollary in Israel." (Id. at 25.)
Plaintiffs' argument misunderstands the court's prior opinion, which addressed the issue raised. Noting that Plaintiffs contended that Section 230"does not apply to claims based in foreign law," the court assumed that the Plaintiffs' Israeli tort claims were properly presented and concluded those claims were barred in any event. (May 18 M & O at 27 n.14.) In coming to this determination, the court examined the enumerated exceptions to Section 230's grant of immunity, and concluded that the absence of any carve-out for claims based on foreign law indicated that no such exception was intended. (Id. )
To the extent that Plaintiffs argue that a conflict-of-laws analysis prevents the application of federal statutes to foreign-law-based claims, the argument is unsupported in law or logic. Plaintiffs point to no authority for the notion that the decisional rules applied in a conflict-of-laws analysis require courts in this country to ignore governing sources of federal law when applying claims raised under the laws of other nations,5 nor is the court aware of any such authority. Further, Plaintiffs' suggestion appears to be fundamentally at odds with supremacy of federal law over state law. When conducting a conflict-of-laws analysis, federal courts look to the law of the forum state, in this case New York. Cf., e.g., Licci ex rel. Licci v. Lebanese Canadian Bank, SAL,
Accordingly, and again assuming that Israeli law, not New York law, applies to the cited claims, the court is not convinced that its prior decision was erroneous.
* * * *
For the foregoing reasons, Plaintiffs' motion to alter the judgment pursuant to Federal Rule of Civil Procedure 59(e) is DENIED.
B. Motion to Amend the Complaint
In the alternative, Plaintiffs move to amend their complaint a second time and propose new allegations which, in their account, correct the deficiencies in their prior complaint. (Amendment Mot.; Pls. Mem. in Supp. of Amendment Mot. ("Amendment Mem.") (Dkt. 53); see also PSAC.) After considering the proposed second amended complaint, the court concludes that Plaintiffs fail to allege facts that would support any of the asserted causes of action against Facebook. Their motion to amend is accordingly denied.
Under Federal Rule of Civil Procedure 15(a), a party may amend its complaint either with its opponent's written consent or with leave of the court.6 Fed. R. Civ. P. 15(a)(2). Courts "should freely give leave [to amend] when justice so requires."
Leave to amend may be granted post-judgment. "As a procedural matter, '[a] party seeking to file an amended complaint postjudgment must first have the judgment vacated or set aside pursuant to [ Rules] 59(e) or 60(b).' "
*326Williams v. Citigroup Inc.,
In their proposed second amended complaint ("PSAC"), Plaintiffs propose to add a number of allegations that fall into four primary categories: (1) "[f]actual background and legislative statements involved in the enactment of the federal antiterrorism statutes at issue" (Amendment Mem. at 4); (2) allegations that Facebook violated the ATA by providing material support to Hamas in the form of "personnel" and "expert assistance" (id. at 3-4), and that Facebook's assistance to Hamas "freed-up money and other resources for Hamas and the terrorists to carry out the terrorist acts that severely injured the Plaintiffs" (id. at 7); (3) allegations related to Facebook users' ability to "self-publish" (id. at 4); and (4) Allegations demonstrating that Facebook's actions pertaining to its provision of material support and resources to Hamas occurred" outside of the United States (id. at 6). Additionally, Plaintiffs propose adding a new claim under 18 U.S.C. § 2339C(c) based on Facebook's purported concealment of material resources provided to Hamas, as well as factual allegations related to that claim. The court examines each of these categories of proposed amendments and, for the reasons that follow, denies the motion to amend as futile.
a. Allegations Regarding Antiterrorism Statutes
The first category of new proposed new allegations pertains only to the background of the two antiterrorism statutes at issue here, the ATA and JASTA. (Id. at 4.) These allegations include a history of the ATA's enactment (PSAC ¶¶ 2-7, 18-53), including specifically the act's civil enforcement provisions (id. ¶¶ 38-44). Plaintiffs' evident purpose in introducing this background is to demonstrate that civil claims for material support fall outside of Section 230's grant of immunity based on an exception within that section, which states that "[n]othing in this section shall be construed to impair the enforcement of ... any ... Federal criminal statute."
Plaintiffs' arguments are unpersuasive. The court addressed Section 230's exception for enforcement of federal criminal laws in its previous opinion, noting that "most courts that have examined" that subsection have concluded that it does not "inhibit immunity as to civil liability predicated on federal criminal statutes." (May 18 M & O at 21 n.11.) In this regard, the court finds particularly convincing the First Circuit's conclusion that Section 230(e)(1)'s specific reference to "criminal *327statutes," viewed alongside other exceptions within Section 230 that apply equally to civil and criminal remedies, indicates that Congress only intended to exclude criminal prosecutions through that exception.8 Jane Doe No. 1 v. Backpage.com,
Accordingly, the court finds these new allegations regarding the history and purpose of the ATA and JASTA to be insufficient to overcome previously identified shortcomings in Plaintiffs' first amended complaint.
b. Additional Material Support Allegations and Self-Publication
Plaintiffs' proposed complaint also attempts to refine its allegations that Facebook provided material support to terrorism so as to avoid involving implicating Facebook's role as a publisher or speaker of third-party content. First, Plaintiffs attempt to differentiate Facebook from other websites by stressing that Facebook users register to "design and create their own internet website," from which they are free to "self-publish" content without Facebook purporting to act as "editor, publisher, or speaker" of its users' postings. (PSAC ¶ 127-28.) Second, Plaintiffs add new allegations regarding the types of "material support" that Facebook provides. They characterize Facebook as providing "personnel" to Hamas by "making Hamas leaders, operatives, and recruits available to Hamas to conspire, plan, prepare, and carry out terrorist activity." (PSAC ¶ 223.) Plaintiffs also contend that Facebook provides "expert services" to Hamas-affiliated users by allowing them access to its platform and, through such access, "highly advanced software, algorithms, computer servers and storage, communications devices, [and] computer applications" that Facebook provides to all users. (Id.
*328¶¶ 123-24; see also Amendment Mem. at 5.)
Plaintiffs' additional allegations do nothing to address the shortcomings in their theories of liability identified in the court's previous decision. With respect to the allegations regarding "self-publication," Plaintiffs misinterpret the scope of Section 230's immunity. Plaintiffs repeatedly stress that users' introduction of information onto Facebook's eponymous platform occurs without Facebook "exercis[ing] any editorial discretion when providing registered accounts or over what users publish on their own [ ] accounts." (Amendment Reply at 8.) From this, Plaintiffs appear to suggest that Facebook cannot be exercising any editorial or publication functions protected by Section 230 which, they imply, require some specific selection with respect to the particular users or postings that may appear on its platform. This argument misunderstands the court's prior decision: In the court's view, Facebook's decision to keep its platform as an open forum, available for registration and posting without prior approval from Facebook, is itself an exercise of editorial discretion. (May 18 M & O at 21.) As noted by the First Circuit:
[the plaintiffs-appellants'] well-pleaded claims address the structure and operation of the [defendant-appellee's] website, that is, [defendant's] decisions about how to treat postings. Those claims challenge features that are part and parcel of the overall design and operation of the website (such as the lack of phone number verification, the rules about whether a person may post after attempting to enter a forbidden term, and the procedure for uploading photographs). Features such as these, which reflect choices about what content can appear on the website and in what form, are editorial choices that fall within the purview of traditional publisher functions.
Jane Doe,
Plaintiffs' new allegations regarding Facebook's alleged provision of "personnel" and "expert services" to Hamas and Hamas-affiliated users suffer from the same flaw. Plaintiffs claim that "technological tools" Facebook provided to its users, and that these tools are unrelated to the content of the underlying communications. (Amendment Reply at 8; see also Amendment Mem. at 4-5.) Plaintiffs contend *329these tools provided to users "extend[ ] far beyond providing or performing traditional services of a publisher," and so are not within the scope of the services of a 'publisher.' " (Amendment Reply at 7-8.) At root, however, these theories again derive from a claimed duty on Facebook's part to prevent certain users from using its platform and seek to impose liability based on Facebook's decision to allow free access to, and use of, its platform and forum. Said differently, Facebook is alleged to have violated a duty to prevent certain users from accessing and using its platform. As discussed above and in this court's previous dismissal of Plaintiffs' claims, Section 230 shields Facebook from such claims, as "Facebook's choices as to who may use its platform are inherently bound up in its decisions as to what may be said on its platform, and so liability imposed based on its failure to remove users would equally 'derive[ ] from [Facebook's] status or conduct as a 'publisher or speaker.' " ' (May 18 M & O at 21 (quoting LeadClick Media,
Moreover, like Plaintiffs' first amended complaint, Plaintiffs' new allegations regarding Facebook's claimed provision of "personnel" and "expert services" again "rely on content to establish causation and, by extension, Facebook's liability," a theory already rejected by this court. (May 18 M & O at 22.) As Plaintiffs' proposed amended complaint makes clear, their theory that Facebook makes "personnel" available to Hamas depends on the content of communications on Facebook's website: Plaintiffs seek to hold Facebook liable for providing a publication forum for Hamas and its leaders, operatives, and recruits, "to conspire, plan, prepare, and carry out terrorist activity." (SAC ¶ 223.) This is fundamentally no different than Plaintiffs' prior argument that "Facebook contributed to their harm by allowing Hamas to use its platform to post particular offensive content." (May 18 M & O at 22.) Likewise, both the "personnel" and "expert services" allegations appear to rest in large part on allegations that Facebook's networking algorithms recommend content to account holders. However, as Facebook points out, "the features of Facebook that [P]laintiffs criticize operate solely in conjunction with ... content posted by Facebook users." (See Def. Opp'n to Amendment Mot. ("Amendment Opp'n") (Dkt. 57) at 5 (emphasis in original) ); see also PSAC ¶¶ 611-22 (describing how Facebook's algorithms connect "users to one another and to groups and events that they will be interested in based on the information in their user profiles and online activities"). Plaintiffs' new allegations would again simply seek to hold Facebook liable solely on the basis of the website's role in hosting and re-publishing content generated by Hamas-affiliated users.10 Bound up as they are in the content that Hamas-affiliated users provide, the court concludes that *330these new claims remain subject to the immunity afforded under Section 230 and so cannot provide a basis for liability as to Facebook.11
c. Extraterritoriality Allegations
Plaintiffs' proposed amendments include a number of factual allegations regarding Facebook's conduct outside of the United States, which Plaintiffs contend "support [their] contention that the CDA does not apply to claims involving violation of laws outside of the territorial jurisdiction of the United States." (Amendment Reply at 10; PSAC ¶¶ 629-32.) The court need not dwell on these new allegations. The court concluded in its prior opinion that, for purposes of the extraterritoriality analysis, the relevant territorial relationships are based "where redress is sought and immunity is needed"-the situs of the litigation. (May 18 M & O at 27.) Plaintiffs' new allegations obviously do not suggest that the situs of this litigation has changed, but are better viewed as part of their tenacious effort to convince the court to reconsider its prior extraterritoriality analysis. The court has already declined to do so, and so concludes that these new allegations fail to advance Plaintiffs' claims.
d. "Concealment" of Material Support
Plaintiffs' final set of new allegations relates to their new claim that Facebook "concealed" its provision of material support to Hamas in violation of the ATA. Specifically, Plaintiffs allege that Facebook's "Community Standards," which purport to prevent terrorists and terrorist organizations to use the platform, "conceal" both Facebook's own provision of material support to Hamas and the separate use of the platform by terrorists to provide material support to Hamas. (Amendment Mem. at 6.)
The relevant section of the material support statutes prohibits covered individuals and entities12 from "knowingly conceal[ing] or disguis[ing] the nature, location, source, ownership, or control of any material support or resources, or any proceeds of such funds ... knowing or intending that the support or resources are to be provided, or ... were provided, in violation of section 2339B[.]" 18 U.S.C. § 2339C(c)(2)(A). Thus, in order to violate that provision, the entity must have knowingly "concealed" or "disguised" material support provided to a designated foreign terrorist organization13 but need not necessarily have provided the material support itself.
In the court's view, allegations brought under that section against Facebook, if *331plausibly pled, would escape Section 230's coverage. In its opposition to the amendment, Facebook argues strenuously that the "concealment claim boils down to a challenge to who may use Facebook and what content they share" and so seeks to impose liability on the same basis already rejected by the court. (Def. Suppl. Opp'n to Amendment Mot. (Dkt. 60) at 3.) It may be true that a concealment claim based only on Facebook's own purported provision of material support would fail: As noted, Section 2339C(c) requires a predicate violation of Section 2339B, 18 U.S.C. § 2339C(c)(2)(A), and the court has already held that Facebook cannot be held liable under that statute based on Plaintiffs' theories. Plaintiffs also contend, however, that Facebook's statements in the Community Standards "conceal" acts by Hamas members and supporters that provide material support to Hamas using Facebook's platform. (Amendment Mem., at 6 ("By its actions and deceptions, Facebook also conceals the Hamas leaders' and affiliates' own provision of personnel (themselves) via their Facebook accounts." (emphasis in original) ); PSAC ¶¶ 222-24.) Said differently, unlike the other theories of liability proposed by Plaintiffs, the "concealment" claim does not seek to hold Facebook liable for failing to prevent Hamas and its affiliates from obtaining accounts or posting offensive content. (See May 18 M & O, at 21-22.) Instead, Plaintiffs argue that Facebook's own actions conceal or disguise material support to Hamas provided by others. The court agrees that, thus construed, the concealment cause of action does not fall within the coverage of Section 230, as it does not "inherently require[ ] the court to treat [Facebook] as the publisher or speaker of content provided by another," or "derive[ ] from [Facebook's] status or conduct as a 'publisher or speaker.' " (Id. at 20 (quoting LeadClick Media,
This does not end the inquiry, however, as Plaintiffs must still set forth sufficient allegations "to state a claim to relief that is plausible on its face." Iqbal,
After examining the allegations set forth in the proposed amended complaint, the court concludes that Plaintiffs fail to set forth a plausible claim that Facebook "concealed" or "disguised" the use of its platform by Hamas and its member and supporters. As noted, Plaintiffs' claims that Facebook conceals Hamas's presence on its platform are based solely on allegedly false claims in Facebook's "Community Standards" and public statements by the company that it does not permit terrorists or terrorist organizations to use the website. (See Pls. Suppl. Mem. in Supp. of Amendment Mot. (Dkt. 61) at 5-6; see also, e.g., PSAC ¶¶ 172-74, 583-89.) Plaintiffs do not allege, however, that such false statements had the effect of preventing anyone from discovering that Hamas or its members were using Facebook's platform. At most, the policy statements and public pronouncements to which Plaintiffs point have the effect of concealing or disguising Facebook's factual willingness to abide such use, but not the fact of the use itself. To the contrary, the complaint is replete with allegations that "HAMAS, its leaders, spokesmen, and members have openly maintained and used official Facebook accounts" (PSAC ¶ 9), use those accounts to draw attention to their activities (PSAC ¶ 165), and that this use of the platform by Hamas and other, similar groups has been widely recognized by the public (id. ¶¶ 590-98). Against these allegations, the court sees no plausible claim that Facebook's statements-or any other action by the company, for that matter-did anything to "prevent disclosure or recognition" or "obscure the existence or true ... character of" the use of its platform to support Hamas.15
Accordingly, Plaintiffs' motion to amend their complaint is pursuant to Federal Rules of Civil Procedure 15(a), 59(e), and 60(b) is denied. Moreover, as the proposed amendments fail to correct the deficiencies identified by the court's decision dismissing Plaintiffs' first amended complaint, the court concludes that it is appropriate to deny the motion with prejudice. See, e.g., Curtis v. Citibank, N.A.,
III. CONCLUSION
For the foregoing reasons, Plaintiffs' motions to amend the judgment (Dkt. 50) and to file a second amended complaint (Dkt. 52) are DENIED WITH PREJUDICE.
SO ORDERED.
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