`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE NORTHERN DISTRICT OF ILILNOIS
`EASTERN DIVISION
`
`
`IN RE: TIKTOK, INC.,
`CONSUMER PRIVACY
`LITIGATION
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`This Document Relates
`to All Cases
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`
`MDL No. 2948
`
`Master Docket No. 20 C 4699
`
`Judge John Z. Lee
`
`
`
`Magistrate Judge Sunil R. Harjani
`
`MEMORANDUM OPINION AND ORDER
`
`In August 2018, the Beijing-based technology company ByteDance, Ltd.
`
`
`
`(“ByteDance”) launched a social media platform and entertainment application
`
`known today as TikTok (“TikTok” or “the App,” formerly known as Musical.ly) in the
`
`United States and elsewhere abroad. The App, which allows users to share relatively
`
`short homemade videos, quickly became one of the most ubiquitous in the world, and
`
`boasts more than 800 million active users across the globe today.
`
`
`
`Soon after the App exploded in popularity across the United States, however,
`
`so too did concerns, and litigation, about its handling of user data. The lead plaintiffs
`
`(“Plaintiffs”) in this multidistrict litigation (“MDL”) are United States residents who
`
`allege that the subsidiaries of ByteDance—TikTok, Inc. (formerly Musical.ly, Inc.),
`
`TikTok, Ltd., ByteDance Inc., and Beijing ByteDance Technology Co., Ltd.
`
`(collectively, “Defendants”)—have been flouting U.S. privacy law by surreptitiously
`
`harvesting and profiting from Plaintiffs’ private information, including their
`
`biometric data, geolocation information, personally identifiable information, and
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 2 of 33 PageID #:3085
`
`unpublished digital recordings, through the App. Following months of negotiations,
`
`Plaintiffs have reached a settlement agreement with Defendants that would provide
`
`$92 million in monetary relief and an array of injunctive relief for the putative
`
`settlement class.
`
`
`
`Before the Court is Plaintiffs’ motion for preliminary approval of the
`
`settlement agreement, as well as various objections from putative class members.
`
`For his part, Objector Dennis Litteken contends that the settlement agreement is not
`
`fair, reasonable, and adequate, because it does not reflect the net expected value of
`
`continued litigation to the class, and that the proposed notice plan is deficient.
`
`Objector Mark S., as parent and legal guardian of his minor son, A.S., echoes these
`
`contentions and adds that the settlement does not account for conflicts between minor
`
`and non-minor class members and that the proposed release is overly broad vis-à-vis
`
`the proposed settlement in a somewhat related case pending in this judicial district.
`
`Finally, Objectors Brian Behnken and Joshua Dugas insist that the proposed opt-out
`
`procedure is so onerous as to violate due process and the Federal Arbitration Act. For
`
`the reasons set forth below, the objections are overruled, and Plaintiffs’ motion for
`
`preliminary approval is granted.
`
`I.
`
`Background
`
`A.
`
`Procedural History
`
`
`
`The first of the twenty-one putative class actions comprising this MDL was
`
`filed in the Northern District of California in November 2019. See Hong v. ByteDance,
`
`Inc., No. 19 C 7792 (N.D. Cal.) (Koh, J.). Led by one of the future members of
`
`
`
`2
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 3 of 33 PageID #:3086
`
`Plaintiffs’ Interim Co-Lead Counsel team, the parties in Hong first engaged in
`
`mediation in April 2020. The mediation was facilitated by Layn R. Phillips, a former
`
`United States District Judge for the Western District of Oklahoma and founder of
`
`Phillips ADR Enterprise, an experienced and well-respected alternative dispute
`
`resolution firm.
`
`
`
`Beginning in late April 2020, the other twenty putative class actions were filed
`
`in four separate federal districts: the Northern District of California, the Central
`
`District of California, the Southern District of Illinois, and the Northern District of
`
`Illinois. On May 15, 2020, counsel from one of these cases filed a motion with the
`
`Judicial Panel on Multidistrict Litigation (“JPML”) to consolidate the then-nineteen
`
`related actions and to transfer them to one district court for pretrial proceedings
`
`pursuant to 28 U.S.C. § 1407. After some contentious litigation, the JPML selected
`
`this district, and specifically this Court, on August 12, 2020. See 8/12/20 JPML
`
`Transfer Order, MDL No. 2948, ECF No. 2.
`
`
`
`The next day, on August 13, 2020, Defendant’s counsel and Plaintiffs’ counsel
`
`from eleven of the MDL member cases participated in a second round of mediation
`
`with Judge Phillips. Spearheaded by another future member of Plaintiffs’ Interim
`
`Co-Lead Counsel team, this mediation had been months in the making. By that time,
`
`extraordinary political pressure had mounted against TikTok’s U.S. operations,
`
`culminating in an August 6, 2020, executive order by then-President Trump declaring
`
`that TikTok presented “a national emergency” that “threaten[s] the national security,
`
`
`
`3
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 4 of 33 PageID #:3087
`
`foreign policy, and economy of the United States.” Exec. Order No. 13,942, 85 Fed.
`
`Reg. 48,637 (Aug. 6, 2020).
`
`The executive order gave ByteDance forty-five days to sell TikTok’s U.S.
`
`operations to a U.S. company before the App would be banned in this country,
`
`although the White House later extended the deadline. See Proclamation No. 10,061,
`
`85 Fed. Reg. 51,297 (Aug. 14, 2020). In light of this ultimatum, Defendants were
`
`motivated at the second mediation session to resolve this litigation in order to shed
`
`TikTok’s existing liabilities and maximize its value in preparation for sale.1 After
`
`more than twelve hours of negotiation, this mediation session ended in an agreement
`
`in principle for class-wide resolution. The terms were later memorialized in a signed
`
`agreement on September 4, 2020, although it remained confidential, even from the
`
`Court, for some time thereafter.
`
`
`
`On September 28, 2020, the Court appointed three attorneys to serve as
`
`Plaintiffs’ Co-Lead Counsel, one to serve as Plaintiffs’ Liaison Counsel, and five to
`
`serve as members of the Plaintiffs’ Steering Committee (collectively, the “Plaintiffs’
`
`Leadership Group”). See Case Management Order No. 3, ECF No. 94. In making
`
`these selections, the Court drew upon the attorneys’ efforts “in identifying or
`
`investigating potential claims in the action”; their “experience in handling class
`
`actions, other complex litigation, and the types of claims asserted in the action”; their
`
`
`Although ByteDance initially agreed to sell its U.S. operations of TikTok to Oracle
`1
`and Walmart later in September 2020, a final agreement never materialized, and
`negotiations have since stalled as the Biden administration has shelved Trump’s threat to
`blacklist the App. See, e.g., Bobby Allyn, Biden Administration Pauses Trump’s TikTok Ban,
`Backs Off Pressure
`to Sell App, National Public Radio, Feb. 10, 2021,
`https://www.npr.org/2021/02/10/966584204/ (last accessed Sept. 29, 2021).
`
`
`
`4
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 5 of 33 PageID #:3088
`
`“knowledge of the applicable law”; and the resources that they would “commit to
`
`representing the class”; as well as among other factors pertaining to their “ability to
`
`fairly and adequately represent the interests of the class.” See Fed. R. Civ. P.
`
`23(g)(1)(A)–(B). The Court also was driven by a desire to diversify the members of
`
`the Plaintiffs’ Leadership Group in terms not only of their individual experiences,
`
`locations, attributes, and qualifications, but also of their relationship to and
`
`involvement in the settlement efforts thus far, in hopes that such diversity would
`
`promote more robust efforts to represent the interests of the putative class as a whole.
`
`
`
`Once the Court designated the members of the Plaintiffs’ Leadership Group,
`
`they engaged in an extensive effort to evaluate the September 4, 2020, settlement
`
`agreement. Members were tasked with analyzing an array of legal, factual, and
`
`strategic issues; evaluating confirmatory discovery, including interrogatories,
`
`document requests, depositions by written question; reviewing the results of a weeks’-
`
`long, on-site inspection of TikTok’s source code conducted by a world-renowned
`
`expert; and engaging in further negotiations with Defendants. See Pls.’ Mot. Prelim.
`
`Approval Class Action Settlement (“Pls.’ Mot.”), Ex. F, Carroll Decl. ¶¶ 29–37, ECF
`
`No. 122-6. Through these efforts, the Plaintiffs’ Leadership Group achieved an
`
`addendum to the settlement agreement that strengthens many of its terms, especially
`
`with regard to injunctive relief, as well as a consensus amongst Plaintiffs on the terms
`
`now presented before the Court.
`
`
`
`Amid these settlement efforts, Plaintiffs filed a consolidated amended class
`
`action complaint on December 18, 2020. See Consolidated Am. Class Action Compl.
`
`
`
`5
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 6 of 33 PageID #:3089
`
`(“Compl.”), ECF No. 114. The complaint identifies a Nationwide Class, defined as all
`
`United States residents who have used the App prior to preliminary approval, and
`
`an Illinois Subclass, defined as all Illinois residents who have used the App to create
`
`one or more videos prior to preliminary approval, which is premised on alleged
`
`violations of Illinois’s Biometric Information Privacy Act (“BIPA”), 740 Ill. Comp.
`
`Stat. 14/1 et seq. Compl. ¶ 322.
`
`In addition to the BIPA claim (brought on behalf of the putative Illinois
`
`Subclass), the complaint asserts nine counts on behalf of the putative Nationwide
`
`Class: violation of the Computer Fraud and Abuse Act (“CFAA”), 18 U.S.C. § 1030;
`
`violation of the Video Privacy Protection Act (“VPPA”), id. § 2710; violation of
`
`California’s Comprehensive Computer Data Access and Fraud Act (“CCDAFA”), Cal.
`
`Penal Code § 502; violation of California’s Unfair Competition Law (“UCL”), Cal. Bus.
`
`& Prof. Code § 17200 et seq.; violation of California’s False Advertising Law (“FAL”),
`
`id. § 17500 et seq.; violation of the right to privacy under the California Constitution,
`
`see Cal. Const. art. I, § 1; intrusion upon seclusion under California common law;
`
`unjust enrichment under California common law; and violation of consumer
`
`protection statutes in various other states. Compl. ¶¶ 338–427.2
`
`
`
`After five months of vetting and working to improve upon the original
`
`settlement agreement, Plaintiffs moved for preliminary approval on February 25,
`
`
`According to the complaint, California substantive law (unlike Illinois substantive law
`2
`under BIPA) should apply to every member of the putative Nationwide Class, regardless of
`the member’s state of residence, because California’s substantial contacts with the asserted
`claims—Defendants’ U.S. headquarters and principal place of business are located there, and
`the alleged misconduct emanated from there—give it a substantial interest in regulating
`Defendants’ U.S. operations. Compl. ¶¶ 334–37.
`
`
`
`6
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 7 of 33 PageID #:3090
`
`2021, at which time its terms were first unveiled. See Pls.’ Mot., Ex. A, Settlement
`
`Agreement and Release (“Settlement Agreement”), ECF No. 122-1. In brief, the
`
`Settlement Agreement provides as follows.
`
`B.
`
`Terms of the Settlement Agreement
`
`
`
`First, the Settlement Agreement provides for monetary relief in the form of a
`
`$92 million escrow account that Defendants would fund within 90 days for the benefit
`
`of Settlement Class members. Settlement Agreement § 4.1. After deducting all
`
`Court-approved settlement-related costs and fees, including reasonable attorneys’
`
`fees, the fund would be divided into a total number of pro rata shares equal to the
`
`sum of (1) the number of Nationwide Class members (an estimated 89 million
`
`persons) who submit a valid claim and (2) five times the number of Illinois Subclass
`
`members (an estimated 1.4 million persons, all members of the Nationwide Class as
`
`well) who submit a valid claim. Id. §§ 4.5, 5.2–5.3, 13.1; id., Ex. C, Plan of Allocation
`
`and Distribution of Settlement Funds at 2, ECF No. 122-3. In this way, members of
`
`the Nationwide Class would each receive one share, while members of the Illinois
`
`Subclass would each receive one share (for being members of the National Class) plus
`
`five additional shares, for six shares overall.3
`
`Members selected as class representatives also may be eligible for a service
`
`award of up to $2,500 each. Settlement Agreement § 13.2. And any residual funds
`
`
`In order to arrive at the multiplier for the Illinois Subclass, Plaintiffs’ Leadership
`3
`Group designated separate independent counsel to represent the interests of the Nationwide
`Class and the interests of the Subclass. After evaluating the strength and weaknesses of the
`respective claims, the attorneys then engaged in arms-length negotiations to arrive at the
`multiple. Pls.’ Mot., Ex. J, Rotter Decl. ¶¶ 7–9, ECF No. 122-10; id., Ex. K, Zouras Decl. ¶¶
`6–12, ECF No. 122-11.
`
`
`
`7
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 8 of 33 PageID #:3091
`
`would be redistributed to class members to the extent feasible or otherwise
`
`distributed on terms approved by the Court. Id. §§ 5.4.1–5.4.2. Nothing would revert
`
`to Defendants. Id. § 4.5.
`
`
`
` In addition to monetary relief, the Settlement Agreement provides for broad
`
`injunctive relief. Specifically, Defendants agree to refrain from using the App to
`
`collect or store a domestic user’s biometric data, geolocation information, or ‘clipboard’
`
`content; from storing or transmitting a domestic user’s data outside of the United
`
`States; and from pre-uploading domestic user-generated content; unless expressly
`
`disclosed in TikTok’s privacy policy and in compliance with all applicable laws. Id. §
`
`6.1. Defendants also would delete all pre-uploaded user-generated content collected
`
`from domestic users who did not ‘save’ or ‘post’ the content, and would require a newly
`
`designed annual training program for their employees and contractors on compliance
`
`with data privacy laws. Id. §§ 6.2–6.3.
`
`What is more, Defendants agree to hire a third-party firm at their own expense
`
`to review their data privacy training for a period of three years and to provide a
`
`written verification of that review. Id., Attach., Addendum No. 1 to Settlement
`
`Agreement § 4.3, ECF No. 122-1. Defendants would not share users’ personally
`
`identifiable information with any third party to the extent prohibited by the Video
`
`Privacy Protection Act and would disclose the extent to which they share any user
`
`data with third parties in TikTok’s privacy policy. Id. § 4.1.
`
`
`
` In exchange for such monetary and injunctive relief, members of the
`
`Settlement Class agree to release Defendants from any and all claims that were or
`
`
`
`8
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 9 of 33 PageID #:3092
`
`could have been asserted in this MDL relating to the collection and use of user data.
`
`Id. §§ 2.30, 12.1–12.5.4 To opt out of this bargain, a member of the Settlement Class
`
`must timely complete, sign, and mail a request for exclusion using a designated form
`
`to a designated settlement administrator, setting forth: (i) the name of this matter;
`
`(ii) the person’s or entity’s full name, address, email address and telephone number;
`
`(iii) a specific statement of the person’s or entity’s intention to be excluded from the
`
`settlement; (iv) the identity of the person’s or entity’s counsel, if represented; and (v)
`
`the date on which the request was signed. Id. § 10.1.
`
`
`
`The parties propose to provide notice of the Settlement Agreement to members
`
`of the Settlement Class through a program led by an experienced third-party
`
`administrator. See id. § 9.1; id., Ex. L, Weisbrot Decl., ECF No. 122-12. The program
`
`will include direct notice to all class members whose email addresses the
`
`administrator is able to identify and validate from an analysis of class data records
`
`as well as a national media campaign consisting of targeted advertisements via the
`
`internet, Facebook, Instagram, Twitter, and various search engines, with specific
`
`emphasis on reaching Illinois Subclass members. Weisbrot Decl. ¶¶ 12, 19, 24, 36,
`
`40. The digital media campaign alone is anticipated to reach over 95% of class
`
`members more than five times each, while at least one-third of class members are
`
`
`At the same time, Defendants agree to waive their right to enforce the release to the
`4
`extent that the release would prevent class members from participating in the pending
`settlement in T.K. v. ByteDance Tech. Co., No. 19 C 7915 (N.D. Ill.) (Blakey, J.). Settlement
`Agreement § 2.4; see also 4/28/21 Min. Entry, T.K., ECF No. 68 (noting that Defendants “do
`not object to an ostensible ‘double recovery’ by members of the settlement class” in both that
`case and this case). For this reason, the Court overrules Mark S.’s objection that the release
`in this case is overbroad by making class members choose between the proposed settlement
`in this case and in T.K.
`
`
`
`9
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 10 of 33 PageID #:3093
`
`expected to receive direct email notice. Id. ¶¶ 15, 18, 47. The proposed notice plan
`
`also calls for a dedicated settlement website and a toll-free telephone line. Id. ¶ 14.
`
`Furthermore, while Defendants were initially reluctant to provide notice via
`
`the TikTok App’s ‘inbox’ feature for a variety of reasons, they have since agreed to do
`
`so at their own cost. Pls.’ Suppl. Mem. Supp. Mot. Prelim. Approval Class Action
`
`Settlement at 25, ECF No. 137.
`
`II.
`
`Legal Standard
`
`
`
`“Federal Rule of Civil Procedure 23(e) requires court approval of any
`
`settlement that effects the dismissal of a class action.” Reynolds v. Beneficial Nat’l
`
`Bank, 288 F.3d 277, 279 (7th Cir. 2002) (cleaned up). When parties seek preliminary
`
`approval of a class-action settlement agreement under Rule 23(e), the district court
`
`must undertake three essential inquiries.
`
`
`
`First, the court must determine whether it “will likely be able” to certify the
`
`putative class for purposes of judgment on the proposed settlement. Fed. R. Civ. P.
`
`23(e)(1)(B)(ii); see Am. Int’l Grp., Inc. v. ACE INA Holdings, Inc., Nos. 07 C 2898, 09
`
`C 2026, 2011 WL 3290302, at *3 (N.D. Ill. July 26, 2011). The criteria for class
`
`certification “demand undiluted, even heightened attention” in the Rule 23(e) context
`
`given that “a court asked to certify a settlement class will lack the opportunity,
`
`present when a case is litigated, to adjust the class, informed by the proceedings as
`
`they unfold.” Amchem Prods., Inc. v. Windsor, 521 U.S. 591, 620 (1997); see also Uhl
`
`v. Thoroughbred Tech. & Telecomms., Inc., 309 F.3d 978, 985 (7th Cir. 2002).
`
`Second, the district court must determine whether the proposed settlement is
`
`10
`
`
`
`
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 11 of 33 PageID #:3094
`
`“within the range of possible approval” with regard to the criteria set forth in Rule
`
`23(e)(2). Gautreaux v. Pierce, 690 F.2d 616, 621 n.3 (7th Cir. 1982) (cleaned up); see
`
`Fed. R. Civ. P. 23(e)(1)(B)(i). Under Rule 23(e)(2), the court may finally approve a
`
`proposal settlement “only after a hearing and only on finding that it is fair,
`
`reasonable, and adequate.” Fed. R. Civ. P. 23(e)(2). At the preliminary approval
`
`stage, however, the purpose of the inquiry is only “to ascertain whether there is any
`
`reason to notify the class members of the proposed settlement and to proceed with a
`
`fairness hearing,” Gautreaux, 690 F.2d at 621 n.3, “not to conduct a full-fledged
`
`inquiry into whether the settlement meets Rule 23(e)’s standards,” Am. Int’l Grp.,
`
`2011 WL 3290302, at *6. “Thus, although neither the Federal Rules of Civil
`
`Procedure nor binding case law requires it,” courts in this district have tended to
`
`perform “a more summary version of the final fairness inquiry” at the preliminary
`
`approval stage. Id. (collecting cases); see In re Gen. Motors Corp. Engine Interchange
`
`Litig., 594 F.2d 1106, 1132 (7th Cir. 1979) (stating that preliminary approval
`
`hearings are preferable but not mandatory).
`
`
`
`The Seventh Circuit’s “longstanding guidance” on Rule 23(e)(2) instructs
`
`district courts to consider the following factors in conducting a fairness inquiry: “(1)
`
`the strength of the case for plaintiffs on the merits, balanced against the extent of
`
`settlement offer; (2) the complexity, length, and expense of further litigation; (3) the
`
`amount of opposition to the settlement; (4) the reaction of members of the class to the
`
`settlement; (5) the opinion of competent counsel; and (6) stage of the proceedings and
`
`the amount of discovery completed.” Wong v. Accretive Health, Inc., 773 F.3d 859,
`
`
`
`11
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 12 of 33 PageID #:3095
`
`863 (7th Cir. 2014) (quoting Gautreaux, 690 F.2d at 631); see also Fed. R. Civ. P.
`
`23(e)(2) (listing factors for final approval). “The most important factor relevant to the
`
`fairness of a class action settlement is the strength of plaintiff’s case on the merits
`
`balanced against the amount offered in the settlement.” In re Gen. Motors, 594 F.2d
`
`at 1132 n.44. At the same time, courts “do not focus on individual components of the
`
`settlements, but rather view them in their entirety in evaluating their fairness.” Isby
`
`v. Bayh, 75 F.3d 1191, 1199 (7th Cir. 1996) (cleaned up).
`
`
`
`Third, if the district court finds that it will likely be able to certify the putative
`
`class and that the proposed settlement is within the range of possible approval, the
`
`court must then direct the plaintiffs to provide notice “in a reasonable manner to all
`
`class members who would be bound” by the proposed settlement agreement. Fed. R.
`
`Civ. P. 23(e)(1). For any Rule 23(b)(3) class proposed to be certified for purposes of a
`
`settlement under Rule 23(e), “the court must direct to class members the best notice
`
`that is practicable under the circumstances, including individual notice to all
`
`members who can be identified through reasonable effort.” Fed. R. Civ. P. 23(c)(2)(B).
`
`This notice requirement “is designed to guaranty that those bound by the ruling in a
`
`class action were accorded their due process rights to notice and an opportunity to be
`
`heard.” Chaffee v. A&P Tea Co., Nos. 79 C 2735 and 79 C 3625, 1991 WL 5859, at *2
`
`(N.D. Ill. Jan. 16, 1991).
`
`
`
`Before proceeding to this three-part inquiry, it bears emphasizing the Seventh
`
`Circuit’s recognition that, due to “the built-in conflict of interest in class action suits,”
`
`the law “quite rightly requires more than a judicial rubber stamp when the lawsuit
`
`
`
`12
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 13 of 33 PageID #:3096
`
`that the parties agreed to settle is a class action.” Redman v. RadioShack Corp., 768
`
`F.3d 622, 629 (7th Cir. 2014). On the contrary, the ever-present problem in class
`
`action litigation of lawyers who “may . . . place their pecuniary self-interest ahead of
`
`that of the class . . . . requires district court judges to exercise the highest degree of
`
`vigilance in scrutinizing proposed settlements of class actions.” Reynolds, 288 F.3d
`
`at 280. The appellate court has even “gone so far as to term the district judge in the
`
`settlement phase of a class action suit a fiduciary of the class, who is subject therefore
`
`to the high duty of care that the law requires of fiduciaries.” Id. At the same time, it
`
`has recognized that “[f]ederal courts naturally favor the settlement of class action
`
`litigation.” Isby, 75 F.3d at 1196.
`
`III. Analysis
`
`A. Whether the Putative Class Is Likely To Be Certified
`
`
`
`The first issue is whether the Court “will likely be able” to certify the putative
`
`Settlement Class for purposes of a judgment on the proposed settlement. Fed. R. Civ.
`
`P. 23(e)(1)(B)(ii). This inquiry focuses on two rules: Rule 23(a) and Rule 23(b)(3).
`
`
`
`
`
`
`
`1.
`
`Rule 23(a)
`
`First, under Rule 23(a), the Court must determine whether it is likely to find
`
`that: “(1) the class is so numerous that joinder of all members is impracticable; (2)
`
`there are questions of law or fact common to the class; (3) the claims or defenses of
`
`the representative parties are typical of the claims or defenses of the class; and (4)
`
`the representative parties will fairly and adequately protect the interests of the
`
`class.” Fed. R. Civ. P. 23(a).
`
`
`
`13
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 14 of 33 PageID #:3097
`
`
`
`The first three of these prerequisites are readily satisfied in this case. Given
`
`its estimated 89 million members nationwide, the Class is plainly too numerous for
`
`joinder to be practicable. Cf. McCabe v. Crawford & Co., 210 F.R.D. 631, 643 (N.D.
`
`Ill. 2002) (“Although there is no ‘bright line’ test for numerosity, a class of forty is
`
`generally sufficient to satisfy Rule 23(a)(1).”). And there are abundant questions of
`
`law and fact arising from the “nucleus of operative fact” common to those 89 million
`
`class members, including, to name some of the key examples:
`
`• Whether Defendants improperly collected, stored, disseminated, or
`otherwise used class members’ biometric data and personally
`identifiable information;
`
`• Whether Defendants exceeded the scope of their authorized access to
`class members’ electronic devices;
`
`• Whether Defendants were unjustly enriched through their alleged
`misconduct;
`
`• Whether class members consented to Defendants’ alleged misconduct by
`agreeing to TikTok’s terms of service;
`
`• Whether class members suffered actual damages; and
`
`• Whether class members are entitled to monetary and injunctive relief.
`
`
`Cf. Parker v. Risk Mgmt. Alternatives, Inc., 206 F.R.D. 211, 213 (N.D. Ill. 2002) (“[A]
`
`common nucleus of operative fact is usually enough to satisfy the [commonality]
`
`requirement.”). Similarly, because each class member is a user of the App who
`
`confronted the same alleged misconduct in much the same manner, the claims of the
`
`proposed class representatives typify those of the absent class members. Cf. id.
`
`(“Typicality is satisfied if a plaintiff’s claims arise from the same event, practice or
`
`
`
`14
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 15 of 33 PageID #:3098
`
`course of conduct that gives rise to the claim of the other class members, and if the
`
`claims are based on the same legal theory.”).
`
`
`
`The Court also finds that the proposed representative parties will fairly and
`
`adequately protect the interests of the Nationwide Class and Illinois Subclass as a
`
`whole, and have done so thus far. This prerequisite of Rule 23(a) has two components:
`
`(1) “the representatives must not possess interests which are antagonistic to the
`
`interests of the class,” and (2) “the representatives’ counsel must be qualified,
`
`experienced and generally able to conduct the proposed litigation.” CV Reit, Inc. v.
`
`Levy, 144 F.R.D. 690, 698 (S.D. Fla. 1992); see also Retired Chi. Police Ass’n v. City of
`
`Chi., 7 F.3d 584, 598 (7th Cir. 1993).
`
`Here, the proposed Nationwide Class representatives’ interests are aligned
`
`with, not antagonistic to, those of the absent Nationwide Class members, because
`
`they all want to use the App without having their privacy rights violated and to
`
`receive compensation for their allegations that Defendants have previously violated
`
`those rights under law that applies nationwide. The same goes for the proposed
`
`Illinois Subclass representatives’ interests in vindicating the privacy rights of Illinois
`
`users of the App under BIPA. And especially given that the proposed class counsel
`
`are the same attorneys whom the Court vetted and selected to serve as Plaintiffs’
`
`Interim Co-Lead Counsel, the Court is confident that they possess the qualifications,
`
`experience, and capabilities needed to champion these interests.
`
`
`
`Disagreeing with this conclusion, Mark S. objects that the proposed settlement
`
`does not satisfy Rule 23(a)(4) because, in his view, it omits additional subclasses
`
`
`
`15
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 16 of 33 PageID #:3099
`
`needed to account for two conflicts that exist between minor and non-minor putative
`
`class members. First, Mark S. contends that minor class members should receive
`
`greater compensation because, unlike non-minor class members, they are able to
`
`disaffirm the purported arbitration agreements and class action waivers found in
`
`TikTok’s terms of service, which are among the primary litigation risks Plaintiffs
`
`face. But Mark S. overlooks that disaffirmance would seem to require individual
`
`minor class members, at the very least, to stop using the App, which may not be
`
`worthwhile. Cf., e.g., C.M.D. ex rel. De Young v. Facebook, Inc., 621 F. App’x 488, 489
`
`(8th Cir. 2015) (“By continuing to use facebook.com after bringing their action,
`
`Plaintiffs manifested an intention not to disaffirm the contract.”). And Mark S. does
`
`not contend that any minor class members have disaffirmed these agreements to
`
`date. In any event, twenty-eight of the thirty-five proposed class representatives are
`
`themselves minors and have an interest in ensuring that their rights (and those of
`
`other minor class members) are aggressively pursued. And, indeed, the proposed
`
`class counsel, all of whom represent minor Plaintiffs, represent that they studied this
`
`issue while negotiating the settlement.
`
`
`
`Second, Mark S. posits that minors under the age of thirteen require unique
`
`injunctive relief in order to ensure that Defendants delete all of their personal
`
`information and disclose the identities of the entities with whom Defendants
`
`previously shared this information. But Mark S. fails to explain why this is so, and
`
`the Court discerns no reason why minor class members under thirteen would suffer
`
`
`
`16
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 17 of 33 PageID #:3100
`
`harms that are different than those of older minor class members, after the
`
`settlement is implemented.
`
`
`
`
`
`2.
`
`Rule 23(b)(3)
`
`Because Plaintiffs seek to certify the Class under Rule 23(b)(3), the Court also
`
`must consider whether it is likely to conclude that: “the questions of law or fact
`
`common to the class members predominate over any questions affecting only
`
`individual members”; and “a class action is superior over other available methods for
`
`fairly and efficiently adjudicating the controversy.” Fed. R. Civ. P. 23(b)(3). Factors
`
`particularly pertinent to these issues here “include: (A) the class members’ interests
`
`in individually controlling the prosecution . . . of separate actions” and “(B) the extent
`
`and nature of any litigation concerning the controversy already begun.” See id.
`
`
`
`These prerequisites are satisfied as well. Predominance is met because many
`
`of the issues of law and fact common to members of the Nationwide Class and Illinois
`
`Subclass, respectively, may be resolved “through generalized proof”—namely, by
`
`examining Defendants’ uniform data collection and privacy practices against their
`
`legal obligations. And these issue “are more substantial” than any issues that may
`
`be “subject only to individualized proof.” See Roach v. T.L. Cannon Corp., 778 F.3d
`
`401, 405 (2d Cir. 2015).
`
`The requirement of superiority also is met because, given the relatively modest
`
`amounts that class members would stand to recover in individual actions, it is
`
`improbable that many “would possess the initiative to litigate individually.” See
`
`Haynes v. Logan Furniture Mart, Inc., 503 F.2d 1161, 1165 (7th Cir. 1974); cf.
`
`
`
`17
`
`
`
`Case: 1:20-cv-04699 Document #: 161 Filed: 09/30/21 Page 18 of 33 PageID #:3101
`
`Amchem, 521 U.S. at 617 (“The policy at the very core of the class action mechanism
`
`is to overcome the problem that small recoveries do not provide the incentive for any
`
`individual to bring a solo action prosecuting his or her rights.” (cleaned up)). Indeed,
`
`as the procedural history of this MDL illustrates, this is precisely the kind of matter
`
`in which “a class suit is the best, an