Tatum v. X. Corp.

CourtDistrict Court, E.D. North Carolina
DecidedMay 13, 2024
Docket7:24-cv-00081
StatusUnknown

This text of Tatum v. X. Corp. (Tatum v. X. Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tatum v. X. Corp., (E.D.N.C. 2024).

Opinion

_ IN THE UNITED STATES DISTRICT COURT . FOR THE EASTERN DISTRICT OF NORTH CAROLINA SOUTHERN DIVISION No. 7:24-CV-81-D

ANTHONY TATUM, ) Plaintiff, Vv. ORDER X CORP., et al., Defendants.

On January 5, 2024, Anthony Tatum (“Tatum” or “plaintiff’), proceeding pro se, filed a complaint against X Corp. (“X”) and Elon Musk (“Musk”) in Pender County Superior Court [D.E. 1-1]. On January 16, 2024, Tatum amended his complaint and added five pseudonymous defendants (collectively, with X and Musk, “defendants”) [D.E. 1-2]. Tatum’s amended complaint alleges a products-liability claim in violation of N.C. Gen. Stat. § 99B-5 against X and a negligence claim against Musk. See id. On February 12, 2024, X removed the action to this court [D.E. 1]. On February 20, 2024, X moved to dismiss Tatum’s claim against it for failure to state a claim upon which relief may be granted [D.E. 6] and filed a memorandum in support [D.E. 6-1]. See Fed. R. Civ. P. 12(b)(6).! The same day, X also asked the court to take judicial notice of X’s terms of service [D.E. 7]. On February 22, 2024, the court notified Tatum about the motion to dismiss, the consequences of failing to respond, and the response deadline [D.E. 8]. See Roseboro v. Garrison, 528 F.2d 309, 310 (4th Cir. 1975) (per curiam). On March 5, 2024, Tatum responded

1 X argues Tatum fails to plausibly allege a negligence claim against it. See [D.E. 6-1] 23-25, 27-28. Tatum confirms that he alleges a negligence claim only against Musk. See [D.E. 11] 6. Accordingly, the court does not consider a negligence claim against X.

in opposition [D.E. 11]. On March 12, 2024, Tatum filed a declaration in support of his response [D.E. 13}. On March 19, 2024, X replied [D.E. 14]. As explained below, the court grants X’s motion for judicial notice, grants X’s motion to dismiss, and dismisses with prejudice Tatum’s claim against X.

□ I. X is an American technology company that oem and operates the social media platform formerly known as Twitter. See Am. Compl. [D.E. 1-2] ff] 4, 12. Musk is X’s majority owner, Executive Chairman, and Chief Technology Officer (“CTO”). See id. at 95. At all relevant times, Tatum operated X accounts @anthonytatum69 and @heliosnn. See id. at J 3, 25. Tatum alleges that Musk “tweeted that he was donating $100 million” to the XPrize Gigaton CO2 Removal competition (“XPrize”). Id. at ¢ 28. In September 2021, Tatum left his job to “focus[] entirely on the XPrize.” Id. at 29. In April 2022, “[d]ue to loss of income,” Tatum sold his house and moved to Florida to continue working on the XPrize and find another job. Id. at § 30. Tatum did not win XPrize and could not find another job. See id. at § 31. Tatum’s XPrize partner suggested that Tatum begin writing code to predict the stock market using artificial intelligence (“A.1.”) and machine learning. See id. at 32. Tatum began developing such code and “shared these developments on X.” Id. at 33-34. Tatum used X “to meet people and build relationships and business opportunit[ies}” concerning his code. Id.; see id. at 36. According to Tatum, Musk “encouraged” Tatum’s code development via “sub tweeting,” which is when an X user makes “a post that refers to a particular user without directly mentioning them.” Id. at J] 25, 34. During this time, Tatum alleges he also interacted with the pseudonymous defendants on X. See id. at ¢ 38. At some point, Tatum “began noticing that his computer and some of his remote servers were acting strange.” Id. at 40. For example, “his website was

crashing unexpectedly, program libraries were changing, private SSH keys stopped working[,] and his laptop memory was randomly reaching capacity and changing.” Id. Tatum “suspect[s]” that the pseudonymous defendants hacked him. Id. at { 41. - On May 15, 2023, Orion180, an insurance company, hired Tatum as an accounting analyst. See id. at ¢ 42. During his employment, Tatum “noticed some vulnerability” in Orion180’s software “that could present insurance agents with the potential for fraud.” Id. According to Tatum, because of his “personal security breach,” his “knowledge of the fraud vulnerability at Orion180” presented “a potential for entrapment or a setup.” Id. at ] 43. Tatum notified Orion180 of its potential vulnerability and “requested a signed legal statement releasing [Tatum] from liability due to this knowledge.” Id. at {| 43-44. Orion180 refused Tatum’s request and terminated Tatum’s employment. See id. at J 44. On May 25, 2023, new neighbors moved into the apartment below Tatum’s apartment in Florida. See id. at ] 46. Tatum noticed “extreme mood changes and emotional distress in his wife and children immediately after the new neighbors moved in.” Id. at | 47. Tatum’s wife “exhibited emotional distress for approximately 10 days.” Id, at ¢ 48. Tatum’s two-year old daughter displayed “excessive signs of distress such as pointing to her head and crying, acting confused and depressed, screaming excessively, waking up with night terrors, and more.” Id. at { 49. Afterwards, Tatum alleges that he broke his lease on his Florida apartment and moved back to Pender County, North Carolina, due to his loss of income after Orion180 terminated his employment. See id. at ] 45. Once he returned to North Carolina, Tatum “visited the emergency room regarding his own symptoms of heart pain.” Id. at § 51. Tatum alleges that X and Musk’s actions have caused him damages including lost wages, moving expenses, “payment of outstanding lease,” medical expenses, and “{p]hysical and

emotional harm.” Id. at 60, 63. Tatum seeks compensatory damages to cover lost wages, "compensatory damages “for having to vacate the apartment due to financial and health concerns,” compensatory damages for medical expenses, punitive damages for negligence, and any other relief the court deems “just and proper.” Id. at 11-12. A motion to dismiss under Rule 12(0)(6) tests the complaint’s legal and factual sufficiency. See Ashcroft v. Iqbal, 556 U.S. 662, 677-80 (2009); Bell Atl. Corp. v. Twombly, 550 U.S. 544, □

554-63 (2007); Coleman v. Md. Ct. of Appeals, 626 F.3d 187, 190 (4th Cir. 2010), aff'd, 566 U.S. 30 (2012); Giarratano v. Johnson, 521 F.3d 298, 302 (4th Cir. 2008). To withstand a Rule 12(b)(6) “motion, a pleading “must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Iqbal, 556 US. at 678 (quotation omitted); see Twombly, 550 USS. at 570; Giarratano, 521 F.3d at 302. In considering the motion, the court must construe the facts and reasonable inferences “in the light most favorable to [the nonmoving party].” Massey □□ Ojaniit, 759 F.3d 343, 352 (4th Cir. 2014) (quotation omitted); see Clatterbuck v. City of Charlottesville, 708 F.3d 549, 557 (4th Cir. 2013), abrogated on other grounds by Reed v. Town of Gilbert, 576 U.S. 155 (2015). A court need not accept as true a complaint’s legal conclusions, - “ynwarranted inferences, unreasonable conclusions, or arguments.” Giarratano, 521 F.3d at 302 □

(quotation omitted); see Iqbal, 556 U.S. at 678-79. Rather, a plaintiff's factual allegations must “nudge[] [his] claims,” Twombly, 550 U.S. at 570, beyond the realm of “mere possibility” into “plausibility.” Iqbal, 556 U.S. at 678-79. .

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