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522 F.Supp.3d 617
N.D. Cal.
2021
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Background:

  • Plaintiffs filed a class action under the Illinois Biometric Information Privacy Act (BIPA) challenging Facebook’s Tag Suggestions for creating/storing face templates without consent; a class of Illinois users was certified.
  • The district court held that a statutory BIPA violation suffices for Article III standing; the Ninth Circuit affirmed and the Supreme Court denied certiorari; the Illinois Supreme Court reached a similar conclusion in Rosenbach.
  • After preliminary approval was denied, parties renegotiated: Facebook increased the non‑reversionary fund to $650 million, agreed to change Face Recognition defaults to off (absent express consent), delete templates for nonconsenting or inactive users, and narrowed the release.
  • The notice/claims program used extensive online outreach (email, Facebook notices, web ads, newspapers) and behavioral design input, producing ~1.57 million valid claims (~22% claims rate) and only 109 opt‑outs and three objections.
  • The court granted final approval, awarded class counsel fees and costs (reduced from requested), approved administrator costs, and ordered incentive awards to the three named plaintiffs; all objections were overruled.

Issues:

Issue Plaintiff's Argument Defendant/Objectors' Argument Held
Article III standing (injury in fact) BIPA statutory violation is a concrete injury sufficient for Article III. Statutory violation without concrete harm is not Article III injury. Court held statutory BIPA violation suffices; Ninth Circuit affirmed; cert. denied.
Choice of law / standard for final approval Apply transferee court law (Ninth Circuit) for Rule 23(e) and fee issues. Objectors urged Seventh Circuit approach. Applied Ninth Circuit precedent under Newton; Rule 23(e)(2) factors used.
Adequacy of relief / fairness of $650M settlement $650M fund, injunctive changes, strong notice, high claims rate, and litigation risks justify settlement. Objectors argued settlement undervalues statutory damages and leaves money on table; release scope concerns. Settlement approved as fair, reasonable, adequate given trial/appellate risks, claims rate, injunctive relief, and potential due‑process issues for massive statutory awards.
Attorneys’ fees / percentage vs lodestar Requested $110M (16.9% of $650M; or 20% of prior $550M) justified by results and dataset of comparable megasettlements. Objectors argued benchmark/percentage should be reduced for a megafund; watch for windfall. Court awarded 15% ($97.5M), holding 15% of that pending accounting; lodestar cross‑check supported a 4.71 multiplier.

Key Cases Cited

  • Rosenbach v. Six Flags Entm’t Corp., 129 N.E.3d 1197 (Ill. 2019) (Illinois Supreme Court adopting similar BIPA interpretation on who is an “aggrieved” person)
  • In re Bluetooth Headset Products Liability Litig., 654 F.3d 935 (9th Cir. 2011) (factors for assessing class‑action settlement fairness and fee methodology)
  • Churchill Vill., L.L.C. v. Gen. Elec., 361 F.3d 566 (9th Cir. 2004) (multi‑factor framework for evaluating class settlements)
  • Rodriguez v. West Publishing Corp., 563 F.3d 948 (9th Cir. 2009) (court’s fiduciary role and lodestar/percentage considerations)
  • In re Washington Public Power Supply Sys. Sec. Litig., 19 F.3d 1291 (9th Cir. 1994) (common fund principle and fee‑award methods)
  • In re Optical Disk Drive Products Antitrust Litig., 959 F.3d 922 (9th Cir. 2020) (megafund settlements warrant adjusting percentage benchmarks)
  • Vizcaino v. Microsoft Corp., 290 F.3d 1043 (9th Cir. 2002) (market‑rate expectations and comparative percentage data for fee awards)
  • Staton v. Boeing Co., 327 F.3d 938 (9th Cir. 2003) (common fund fees as equitable substitute for private fee agreements)
  • In re Mercury Interactive Corp. Sec. Litig., 618 F.3d 988 (9th Cir. 2010) (district court’s fiduciary responsibility in fee awards)
  • Parker v. Time Warner Entm’t Co., L.P., 331 F.3d 13 (2d Cir. 2003) (due‑process concerns about very large class statutory damages)
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Case Details

Case Name: In re Facebook Biometric Information Privacy Litigation
Court Name: District Court, N.D. California
Date Published: Feb 26, 2021
Citations: 522 F.Supp.3d 617; 3:15-cv-03747
Docket Number: 3:15-cv-03747
Court Abbreviation: N.D. Cal.
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