Xianhua v. Oath Holdings, Inc. f/k/a/Yahoo! Inc.

District Court, N.D. California·Decided April 29, 2021·No. 4:20-cv-06185·Unknown

Opinion

SAN JOSE DIVISION

NING XIANHUA, Case No. 20-CV-06185-LHK

Plaintiff, ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND v. Re: Dkt. No. 23 OATH HOLDINGS, INC., et al., Defendants. Plaintiff Ning Xianhua (“Plaintiff”) sues Defendants Oath Holdings, Inc., Altaba, Inc., Terry Semel, Jerry Yang, and individuals whose identities are unknown to Plaintiff (collectively, “Defendants”). Before the Court is Defendants’ motion to dismiss the instant case. ECF No. 23.1 Having considered the parties’ submissions, the relevant law, and the record in this case, the Court GRANTS Defendants’ motion to dismiss with leave to amend. I. BACKGROUND A. Plaintiff’s Alleged Pro-Democracy Activities in China 1 Defendants’ motion contains a notice of motion paginated separately from the memorandum of points and authorities in support of the motion. Civil Local Rule 7-2(b) provides that the notice of motion and points and authorities must be contained in one document with the same pagination. 1 Plaintiff Ning Xianhua is a Chinese national who resides in New York. ECF No. 1 (“Compl.”) ¶ 7. Defendant Oath Holdings, Inc. (“Oath Holdings”), which was formerly known as Yahoo! Inc. and Yahoo! Holdings, Inc., is a Delaware corporation with its headquarters in Sunnyvale, California. Id. ¶ 8. Defendant Altaba, Inc. (“Altaba”), which was formerly known as Yahoo! Inc, is a Delaware corporation with its headquarters in San Francisco, California. Id. ¶ 9. Defendant Jerry Yang (“Yang”) founded Yahoo! Inc. and controlled Yahoo! Inc and its subsidiaries during the time period relevant to the instant case. Id. ¶ 10. Terry Semel served as Yahoo! Inc’s Chief Executive Officer and chairman of Yahoo! Inc’s board of directors during the time period relevant to the instant case. Id. ¶ 11. The Court will refer to Yahoo! Inc. as “Yahoo.” Plaintiff is “a vocal pro-democracy advocate” who advocated for democracy in China. Id. ¶ 29. Plaintiff’s “resistance against China’s communist regime grew from his and his family’s personal suffering.” Id. ¶ 30. “Because [Plaintiff’s] family lacked elevated status in China’s communist regime, Plaintiff’s family . . . barely scraped by financially.” Id. Additionally, Plaintiff’s brother and two sisters were allegedly taken by People’s Republic of China (“PRC”) officials to provide unpaid labor on local farms. Id. ¶ 31. Plaintiff allegedly “began advocating for democracy and workers’ rights as a young man in his hometown of Shenyang.” Id. ¶¶ 32–33. In May 1989, Plaintiff participated in the “pro- democracy, pro-human rights protests at Tiananmen Square.” Id. ¶ 34. The PRC regime, led by the Chinese Communist Party (“CCP”), responded to these protests by “impos[ing] martial law to quell the protests and remove the protesters” and by “firing on [protesters] and driving through and over them with armored vehicles.” Id. ¶ 35. Following the PRC’s response to the Tiananmen Square protests, Plaintiff “began promoting democracy and working-class rights in a manner that could not be detected by the communist regime.” Id. ¶ 36. Plaintiff “took every step he could to prevent the Chinese government from obtaining his confidential correspondence.” Id. ¶ 37. “In order to confidentially express his political opinions and avoid detection by the PRC,” Plaintiff “privately and discretely 2 disseminated pro-democracy, anti-communism messages and writings using his Yahoo! email account.” Id. ¶¶ 29, 37. Plaintiff “kept his Yahoo! account secure with a password” and “encrypted the materials he sent from his Yahoo! account.” Id. ¶ 37. Nevertheless, Plaintiff alleges that PRC officials were able to identify Plaintiff as a pro-democracy dissident through his Yahoo account. Id. ¶ 28. B. Yahoo’s Alleged Disclosure of Plaintiff’s Information to Chinese Authorities Plaintiff alleges that PRC officials were able to identify him because Defendants “entered into a joint venture with the PRC, pursuant to which the Yahoo! Defendants agreed to help identify Chinese nationals who expressed pro-democracy, anti-CCP ideas over the internet.” Id. Plaintiff alleges that, “[p]rior to entering the Chinese market, [Defendants] knew that PRC communist officials falsely imprisoned and illegally tortured political dissidents.” Id. ¶¶ 39–40. However, Defendants assisted the PRC regime because, if Defendants “did not agree to help the PRC locate and imprison political dissidents using Yahoo! internet products, the PRC would block [Defendants’] access to the Chinese market.” Id. ¶ 40. According to Plaintiff, “Defendants’ decisions to provide the Chinese government confidential communications by pro-democracy activists like [Plaintiff] were made and their implementation closely controlled and directed by Defendants Yang and Semel and the Yahoo managers they directed from Yahoo!’s California headquarters.” Id. ¶ 41. Plaintiff alleges that “Yahoo! employees and Agents received a request from PRC authorities asking for private information relating to [Plaintiff’s] Yahoo! email account, including Protected Information such as [Plaintiff’s] identity, telephone number, physical address, private emails, and the dates, times, and IP addresses from which [Plaintiff] accessed his Yahoo! email account.” Id. ¶ 44. Plaintiff alleges that Defendants “learned of the request at their California headquarters.” Id. Plaintiff alleges that Defendants “knew that the Chinese communist regime was seeking [Plaintiff’s] confidential communications in order to detain, imprison, torture, and potentially execute him.” Id. ¶¶ 44, 46. Regardless, Defendants, from their California 3 headquarters, allegedly ordered or approved the release of Plaintiff’s pro-democracy communications and protected information to PRC authorities. Id. ¶ 44. C. Plaintiff’s Alleged Arrest and Torture Plaintiff alleges that, as a result of Defendants’ actions, Plaintiff was arrested, convicted, and imprisoned by the PRC for criticizing the CCP, for participating in pro-democracy activities, and for disseminating pro-democracy publications. Id. ¶ 27. According to Plaintiff, PRC officers arrested Plaintiff by blindfolding him, handcuffing him, and shackling his legs. Id. ¶ 48. Following Plaintiff’s arrest, PRC officers “deprived [Plaintiff] of sleep, physically beat him about his face and limbs with batons and fists, and repeatedly threatened to kill him.” Id. ¶ 49. Plaintiff was then put in solitary confinement and under 24 hour surveillance. Id. ¶ 50. During his confinement, Plaintiff was interrogated regarding the content of his Yahoo email messages. Id. ¶ 51. Each interrogation lasted about four to six hours and involved torture. Id. For example, Plaintiff, who was wearing a thin shirt, underwear, and plastic slippers, was taken outside when the temperature was less than 13 degrees Fahrenheit, was blindfolded, and was beaten. Id. ¶ 52. Plaintiff was then placed in the Tiger Chair, a high-backed, spiked chair that contorts a person’s body as their handcuffs and shackles are tightened. Id. ¶ 53. When Plaintiff refused to cooperate with the interrogators, the interrogators attached Plaintiff’s handcuffs to the top of the Tiger Chair and then tightened Plaintiff’s handcuffs so that they cut deep into his arms. Id. ¶ 54. “As a result of this interrogation session, [Plaintiff] permanently lost function in his arms and hands and cannot even maintain a grip on a cup of water.” Id. According to Plaintiff, Plaintiff was eventually convicted based on information that Defendants provided to PRC authorities. Id. ¶ 58. Plaintiff alleges that a memorandum submitted by PRC officials to prosecutorial officials and advocating for Plaintiff’s prosecution included pro- democracy writings that Plaintiff had circulated and received using his Yahoo email account. Id. Plaintiff alleges that, “because the memorandum was confidential and not accessible by [Plaintiff] or his defense counsel —and in light of [Defendants’] concealment of their involvement in 4 [Plaintiff’s] arrest

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Xianhua v. Oath Holdings, Inc. f/k/a/Yahoo! Inc., (N.D. Cal. 2021).

Xianhua v. Oath Holdings, Inc. f/k/a/Yahoo! Inc. (Xianhua v. Oath Holdings, Inc. f/k/a/Yahoo! Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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