Wysocki v. ZoomInfo Technologies Inc

District Court, W.D. Washington·Decided March 15, 2024·No. 3:22-cv-05453·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT TACOMA JENNIFER WYSOCKI, CASE NO. 3:22-cv-05453-DGE Plaintiff, ORDER ON MOTION TO STRIKE v. CLASS ALLEGATION AND MOTIONS TO DISMISS (DKT. ZOOM TECHNOLOGIES INC et al., NOS. 21, 22, 78) Defendants.

This matter comes before the Court on Defendants’ Motion to Strike Class Allegations (Dkt. No. 21) and Motion to Dismiss (Dkt. No. 22) which Defendants renewed (Dkt. No. 78). Upon review of those motions, the Plaintiffs’ responses (Dkt. Nos. 37, 38, 91), Defendants’ replies (Dkt. Nos. 45, 46, 97), and the remainder of the record, the Court finds as follows. This class action alleges violations of the Wiretap Act (18 U.S.C. § 2510, et seq.), the Stored Communications Act (18 U.S.C. § 2701 et seq.), and various consumer fraud and privacy laws in Washington, California, Florida, New York, Illinois, Connecticut, and Georgia. (Dkt. No. 19 at 29–63.) The dispute arises from the alleged unauthorized obtaining of Plaintiffs’ personal and professional contact information. Defendants are ZoomInfo Technologies Inc., ZoomInfo Technologies LLC, ZoomInfo Holdings LLC, and ZoomInfo Intermediate Inc. (collectively, “ZoomInfo”). ZoomInfo is a

public company offering for sale access to its proprietary database of information and analytic tools. (Dkt. No. 19 at 3.) ZoomInfo’s database contains intelligence about business entities and individuals, including personnel moves, organizational charts, intent signals, decision-maker contact information, hierarchy information and other financial details. (Id.) ZoomInfo claims its database contains more than 50 million contact details, which are updated daily by artificial intelligence, as well as a team of over 300 human researchers and analysts. (Id.) There are two ways users can access ZoomInfo’s database: through a paid subscription, or via ZoomInfo’s Community Edition Program (“CEP”). (Id.) CEP offers users free access to the database in exchange for the users’ participation in the program. The user agrees to certain

terms and conditions, then downloads and installs a local software application called Contact Contributor (“CC”) which integrates into the user’s mail software. (Dkt. No. 22 at 11.) Once installed, CC will scan the user’s address books, email headers, and signature blocks of email messages for business contact information, like the company and office address, phone number, email address, and the position or title of the person. (Id.) CC “scrapes” for contact information not only from the person who installed CC, but also persons who have emailed the user who installed CC. (Dkt. No. 19 at 3.) For example, Plaintiffs Wysocki and Sidhu have not subscribed to the CEP and have not installed CC. (Id.) Yet Wysocki and Sidhu’s details—their full name, title, years of experience, employment history, names of work colleagues, geographical information—have been displayed in the database without their knowledge or consent. (Id. at 3–4.) Plaintiffs allege ZoomInfo intercepts, views, reads, and accesses users’ electronic email communications and subsequently discloses, disseminates, sells, and otherwise uses individual personal information CC “scraped” off their personal email correspondence without informing

them. (Id. at 5.) Plaintiffs also believe ZoomInfo fails to meaningfully disclose its use of “hundreds of human researchers and analysts to cleanse, organize, and verify personal information” collected, “which it then sells to third parties, such as marketers, recruiters, and advertisers.” (Id.) According to Plaintiffs, “[e]ach such interception and disclosure constitute[s] an egregious breach of social privacy norms and is a violation of federal and state law.” (Id. at 6.) ZoomInfo sends to non-users an email (the “Privacy Notice”) notifying them of the “collection, processing, and sale of certain personal information or personal data.” (Id. at 18.) According to Plaintiffs, the Privacy Notice “is designed to never reach its recipients.” (Id. at 19.)

While ZoomInfo sends their regular communication through a domain name that reaches 95% of its audience, the Privacy Notice is sent from a different domain name, reaching as little as 5% of the recipients’ inboxes, which Plaintiff alleges is by design. (Id.) Users are permitted to opt out of the database by clicking a hyperlink, providing their email address, and completing a verification via email. (Id.) ZoomInfo states it “cannot guarantee that other data providers will see or honor your opt-out request.” (Id.) ZoomInfo filed a motion to dismiss arguing Plaintiffs’ theory seems to be based on an unsupported inferential leap that ZoomInfo “reads” the emails just because Plaintiffs’ information appears in ZoomInfo’s database; ZoomInfo believes its Terms of Use and other public disclosures describe exactly what it does—and exactly what Plaintiffs are complaining of—and Plaintiffs’ factual allegations thus entirely fail to support their theory of the case. (Dkt. No. 22 at 10.) Additionally, ZoomInfo points out the complaint makes claims under the laws of several states for which there is no named plaintiff representative, requiring dismissal of the California,

Florida, New York, and Illinois claims. (Id.) According to ZoomInfo, each claim fails as a matter of law because Plaintiffs have not alleged (and cannot allege) the elements of any of the claims they assert. (Id.) Finally, ZoomInfo argues the complaint fails to specify which of the four Defendants stands accused of each of the alleged acts, depriving Defendants of notice under Rule 8. (Id.) Later, ZoomInfo filed a “renewed” motion to dismiss, asserting in depth an argument made only briefly in the original motion: Plaintiffs’ lack of standing. (See Dkt. Nos. 22 at 29, 78 at 5.) ZoomInfo argues Plaintiffs lack standing because they have no injury as the same information posted on the database is publicly available elsewhere on the internet, including LinkedIn, attorney directory websites, government websites, and company websites.

(Dkt. No. 78 at 10–13.) Filed simultaneously with the original motion to dismiss was Defendants’ motion to strike class allegations pursuant to Rules 12(f) and 23(c). (Dkt. No. 21.) ZoomInfo argues Plaintiffs are not adequately represented due to a divergence of interests. (Id. at 4.) Plaintiffs include two classes: subscribers who participate in CEP and download and authorize CC (“Subscribers”), and people who have not subscribed to CEP nor authorized CC (Non- Subscribers). (Id.) Because the complaint alleges ZoomInfo obtained Non-Subscribers’ information from Subscribers, ZoomInfo argues the two classes are pitted against each other, and each class therefore lacks adequate representation under Rule 23. (Id. at 5.) ZoomInfo’s motion to strike asserts again the same argument in their motion to dismiss: there is no named plaintiff to represent the subclasses required for certain state law claims. (Id.) Because classes (and subclasses) must be represented by a named plaintiff who is part of that class (or subclass), ZoomInfo requests those allegations brought on behalf of subclasses for which there is no named plaintiff be stricken. (Id.)

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Wysocki v. ZoomInfo Technologies Inc, (W.D. Wash. 2024).

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