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Google Wins Dismissal of Buzz Class Action Settlement Dispute
By Courtney Coren
A New York federal judge on Friday dismissed a proposed class action lawsuit against Google Inc. concerning the Internet company’s $8.5 million Google Buzz settlement agreement, saying the company could enforce a forum selection clause to allow such cases to be held in the Northern District of California where its headquarters are located.
The Google Buzz settlement was reached in November 2010 over allegations that the social networking program violated the privacy rights of email users. Several Class Members sued Google in January 2013 over allegedly “confusing” discrepancies between the class action settlement agreement and the subsequent Class Notices that were mailed to Class Members, including different deadline information and inconsistent requirements for proof of leadership.
Due to some of the apparent notice inconsistencies cited by the plaintiffs, Class Members were allegedly kept from opting out even though they had issued a request. Other Class Members said they would have opted out if they had known about the inconsistencies.
Under the $8.5 million settlement agreement, Google agreed to give the money to privacy education groups, not to users, in addition to agreeing to make sure users were properly educated about the privacy options available in Google’s Buzz social networking program. The Internet giant also agreed to address any violations of the Stored Communications Act, the Federal Wiretap Act, the Computer Fraud and Abuse Act and California common law that the company allegedly violated by sharing pictures, videos and other data that customers posted on various websites such as YouTube.
On Nov. 15, U.S. District Judge I. Leo Glasser of the Eastern District of New York dismissed the proposed class action lawsuit without prejudice, meaning that the matter may still be litigated if either of the parties should decide to do so. The judge ruled that Google gave customers enough time to view the forum selection clause, which is provided in the terms of use that email account holders must agree to before accounts are established.
“The forum-selection clause is enforceable,” Judge Glasser wrote. “First, the forum-selection clause was reasonably communicated to the plaintiffs. Google requires all users, after seeing a screen listing the terms or a link to the terms, to agree to the terms of use before creating an email account.
He added: “Second, the forum-selection clause is plainly mandatory. It states that Santa Clara County is the ‘exclusive jurisdiction’ for bringing actions arising from the agreement. The clause therefore requires — rather than simply permits — suits to be brought in the selected forum and venue.”
The senior federal judge did not agree with Google’s argument for dismissal that the class action lawsuit lacked standing and that the plaintiffs failed to state a claim, but added that the court is not ruling on those issues with its decision on venue.
The plaintiffs are represented by the Law Office of Todd C. Bank.
The Google Privacy Settlement Class Action Lawsuit is Rudgayzer, et al. v. Google Inc., Case No. 1:13-cv-00120, in the U.S. District Court for the Eastern District of New York.
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