throbber
Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 1 of 17 PageID #:11254
`
`IN THE UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF ILLINOIS
`EASTERN DIVISION
`
`
`
`IN RE: TIKTOK, INC., CONSUMER PRIVACY
`LITIGATION
`
`
`
`
`This Document Relates to All Cases
`
`)
`)
`)
`)
`)
`)
`)
`
`
`
`MDL No. 2948
`
`Master Docket No. 20-cv-4699
`
`Judge John Z. Lee
`
`Magistrate Judge Sunil R. Harjani
`
`
`
`
`
`
`
`
`
`
`RESPONSE OF MARK S., AS PARENT AND LEGAL GUARDIAN OF HIS MINOR
`SON, A.S., TO MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT
`
`
`
`
`
`
`
`
`
`
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 2 of 17 PageID #:11255
`
`INTRODUCTION
`
`
`
`The Court should deny final approval of the Settlement1 because it is not fair, reasonable
`
`or adequate. Mark S. acknowledges that the Settlement provides for a facially large settlement
`
`value of $92 million. However, that number only tells a portion of the story. Regardless of the
`
`size of the Settlement, the schedule for class members to file their objections in relation to the
`
`date for Class Counsel to file their fee petition was unlawful. Without more, the unlawful
`
`schedule precludes final approval of the Settlement.
`
`
`
`Beyond the unlawful schedule, conflicts of interest resulted in Class Counsel and the
`
`minor class representatives being unable to adequately represent minor class members. The
`
`conflicts result from: (a) the minor class representatives seemingly having not disaffirmed their
`
`agreements with TikTok (they are totally silent on the issue); and (b) Class Counsel negotiating
`
`the claims of minor class members under the age of 13 while in violation of a preliminary
`
`injunction in a related matter. Because of the conflicts, minor class members should have had
`
`separate, conflict-free representation during settlement negotiations.
`
`
`
`Further, the Settlement is not fair, reasonable or adequate because it does not provide fair
`
`value based on the net expected value of the alleged claims if the litigation were to move
`
`forward. Finally, the Notice Program failed to provide the best notice practicable because the
`
`media portion of the plan targeted the wrong people.
`
`PROCEDURAL BACKGROUND
`
`
`
`On February 25, 2021, Plaintiffs filed Plaintiffs’ Motion for Preliminary Approval of
`
`Class Action Settlement. Dkt. 122. On March 1, 2021, Mark S., as parent and legal guardian of
`
`his minor son, A.S., filed his initial objections to the preliminary approval motion. Dkt. 126. In
`
`his objections, Mark S. contended, among other reasons, that the Settlement should not be
`
`1 Capitalized terms have the meaning set forth in the Settlement Agreement and Release (Dkt. 122-1).
`1
`
`
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 3 of 17 PageID #:11256
`
`approved because: (a) it did not account for conflicts between minor and non-minor class
`
`members; (b) the Notice Plan failed to provide notice via the TikTok software application (the
`
`“TikTok App”); and (c) it failed to provide adequate relief to class members. Id. at 2.2 After the
`
`Court held a preliminary approval hearing, TikTok agreed to provide notice via the TikTok App
`
`if ordered to do so by the Court. See Dkt. 139 at 3.
`
`
`
`On September 30, 2021, the Court preliminarily approved the Settlement. Dkt. 161-62. In
`
`its Memorandum and Opinion Order, the Court expressly agreed with Mark S. “that notice
`
`through the App itself would significantly enhance the notice program and that the benefit to
`
`class members of providing in-app notice outweighs any detriment.” Dkt. 161 at 29. Thus, in
`
`granting preliminary approval, the Court accepted TikTok’s offer to provide notice via the
`
`TikTok App. Id.
`
`
`
`In the Preliminary Approval Order, the “Court approve[d], as to form and content, the
`
`proposed Class Notices submitted to the Court.” Dkt. 162 ¶ 14; see also Dkt. 122-4 (proposed
`
`notices). The approved version of the long-form class notice (the “Approved Notice”) contained
`
`a section titled “Your Legal Rights and Options in This Settlement.” See Dkt. 122-4 at 3.
`
`Therein, was a row titled “Object” that stated as follows:
`
`OBJECT
`
`
`
`
`Write to the Court if you do not like the Settlement
`Deadline: DATE
`
`On November 13, 2021, the Settlement Administrator established a website devoted to
`
`Id.
`
`
`
`the Settlement. See Dkt. 196 ¶ 30. The website contained a downloadable and searchable version
`
`of the Approved Notice. Id. In the “Your Legal Rights and Options in This Settlement” section,
`
`the deadline for objections was (and is) January 31, 2022. See Exhibit 1 (printout of Approved
`
`2 Citations to the page numbers of docketed entries are to the CM/ECF-stamped page numbers unless
`otherwise noted.
`
`
`
`2
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 4 of 17 PageID #:11257
`
`Notice – Apr. 14, 2022) at 3; Exhibit 3 (printout of Approved Notice – Nov. 15, 2021) at 3;
`
`Declaration of Scott R. Drury ¶¶ 2, 4 . The Approved Notice did not provide any other date for
`
`class member objections or others response to subsequent filings. See Exs. 1, 3.
`
`
`
`The Settlement website also reproduces the “Your Legal Rights and Options in This
`
`Settlement” section of the Approved Notice on the website’s homepage. See Exhibit 2
`
`(Settlement website’s homepage – April 14, 2022) at 3-4; Drury Decl. ¶ 3. Prior to January 25,
`
`2022, the objection deadline was listed as January 31, 2022. See Exhibit 4 (printout of pre-
`
`January 25, 2022 Settlement website homepage) at 4; Drury Decl. ¶ 6.
`
`
`
`Beginning on November 14, 2021, the Settlement Administrator sent approximately 81
`
`million class notification emails to email addresses affiliated with class members. See Dkt. 196 ¶
`
`7. The email notice provided a link to the Settlement website. See Dkt. 196 ¶ 10 and pp.16-17.
`
`Beginning on December 30, 2021, the Settlement Administrator resent approximately 33 million
`
`class notification emails to those class members who did not receive the original email because it
`
`bounced back to the sender. See id. ¶ 9.
`
`
`
`On November 15, 2021, TikTok provided notification of the Settlement via the TikTok
`
`App. Id. ¶ 11. That in-app notice provided a link to the Settlement website. Id.
`
`
`
`On or about January 25, 2022, the Settlement website was altered. Specifically, on the
`
`homepage, the row within the “Your Legal Rights and Options in This Settlement” section was
`
`modified to include a date to respond to any fee petition:
`
`OBJECT
`
`
`
`Write to the Court if you do not like the Settlement
`Deadline: DATE
`Deadline for responses to Plaintiffs’ Motion for Final Approval
`and Motion for Attorneys’ Fees: April 14, 2022
`
`See Exhibit 5 (printout of January 25, 2022 Settlement webpage) at 4; Drury Decl. ¶ 6. The
`
`downloadable version of the Approved Notice was not altered. No additional mass emails or in-
`
`
`
`3
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 5 of 17 PageID #:11258
`
`app notices were sent to class members advising them of the alteration or the new date. See Dkt.
`
`196 (not describing any post-January 25, 2022 mass class-member emails or in-app notices).
`
`
`
`On January 30, 2022, Mark S. objected to the Settlement in his capacity as parent and
`
`legal guardian of his minor son, A.S. Dkt. 187. While Mark S. believed that A.S. previously had
`
`disaffirmed any agreement A.S. had with TikTok through his initial objections filed in this case
`
`and his objections in the matter of T.K. v. ByteDance Tech. Co., Ltd. (“T.K.”), No. 1:19-cv-7915
`
`(N.D. Ill.), the January 30, 2022 objections made clear that A.S. disaffirmed any such agreement.
`
`Dkt. 187 at 8.
`
`
`
`On March 31, 2022, Plaintiffs filed their Motion for Final Approval of Class Action
`
`Settlement and Plaintiffs’ Motion for Attorneys’ Fees, Reimbursement of Expenses, and Class
`
`Representative Service Awards. Dkt. 195, 197.
`
`ARGUMENT
`
`I.
`
`
`
`Mark S. Complied with the Approved Notice’s Objection Requirements.
`
`The Approved Notice sets forth three requirements for objecting to the Settlement: (a) “a
`
`detailed statement of the Class Member’s objection(s) . . .”; (b) “the Class Member’s full name,
`
`address and telephone number”; and (c) “information demonstrating the Class Member is entitled
`
`to be included as a member of the class.” Dkt. 187-2 at 8-9. Mark S.’s objections satisfy each of
`
`those requirements. See, generally, Dkt. 187. Indeed, Mark S. provided more information than is
`
`required in the Approved Notice, including: (a) a verification that the factual information in the
`
`objections is true and correct; and (b) a list of any other class action settlements to which his
`
`counsel has objected in the last five years. See id. at 7-8, 18. Mark S. also stated that he would
`
`provide additional information if required by the Court. Id. at 7, n.11.
`
`
`
`4
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 6 of 17 PageID #:11259
`
`
`
`Ignoring their own Approved Notice, Plaintiffs contend that Mark S.’s objections are
`
`deficient because they did not comply with requirements set forth in the Preliminary Approval
`
`Order. See Dkt. 195 at 48, n.19. As set forth in Mark S.’s objections, the Approved Notice and
`
`the Preliminary Approval Order inexplicably contain different requirements. See Dkt. 187 at 7,
`
`n.11. Plaintiffs ignore the discrepancy and the consequences of requiring class members to
`
`adhere to requirements that are different than those set forth in the Approved Notice.
`
`Specifically, if class members are required to abide by requirements different than those set forth
`
`in the Approved Notice, then the Approved Notice is defective because it does not provide the
`
`“best notice that is practicable under the circumstances.” See Fed. R. Civ. P. 23(c)(2)(B). In any
`
`event, Mark S. has provided the information necessary for Plaintiffs to determine whether A.S. is
`
`a class member and has standing to object. To the extent the Court seeks more information, Mark
`
`S. can provide it.
`
`II.
`
`
`
`
`Plaintiffs’ Self-Help Remedy of Altering the Settlement Website Does Not Remedy
`the Unlawful Schedule or Cure the Harm to Class Members.
`
`Mark S. has objected to the Settlement on the grounds that the schedule for objecting to
`
`the Settlement was unlawful because it required objections to be filed before the filing of
`
`Plaintiffs’ fee petition. See Dkt. 187 at 8-9. The law in the Seventh Circuit is clear – a schedule
`
`that requires objections to a class action settlement to be made before the deadline for the filing
`
`of motions seeking attorneys’ fees violates Fed. R. Civ. P. 23(h) and is unlawful. See Fed. R.
`
`Civ. P. 23(h); Redman v. Radio Shack, 768 F.3d 622, 637-38 (7th Cir. 2014); Kaufman v.
`
`American Express Travel Related Services Co., Inc., 877 F.3d 276, 283-84 (7th Cir. 2017); see
`
`also In re: Mercury Interactive Corp. Sec. Litig., 618 F.3d 988, 993-95 (9th Cir. 2010). Absent a
`
`schedule that allows class members to object to filed a fee petition, objectors are handicapped.
`
`See Redman, 768 F.3d at 637-38. Without the details provided in the fee petition, objectors could
`
`
`
`5
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 7 of 17 PageID #:11260
`
`only make generalized arguments about the potential fees class counsel may seek. See id.; see
`
`also Kaufman, 877 F.3d at 283.
`
`
`
`While Plaintiffs only respond to Mark S.’s objection in a cursory footnote (see Dkt. 195
`
`at 53, n.24), in response to a different objector, Plaintiffs seek to sidestep the above-cited
`
`controlling precedent by contending that it does not address a “scenario with separate settlement
`
`and fee objection deadlines.” See id. at 60. However, there are not separate objection deadlines in
`
`this case.
`
`
`
`The Preliminary Approval Order contains a single “Objection Deadline” of January 31,
`
`2022. Dkt. 162 at 10 (emphasis added). Below the Objection Deadline, the Preliminary Approval
`
`Order sets forth a separate date for “any responses to Plaintiffs’ Motion and Memorandum in
`
`Support of Final Approval and Motion for Attorneys’ Fees and Service Award.” See id.
`
`(emphasis added). The Preliminary Approval Order’s use of different terms in the two different
`
`sections indicates that it is referring to different things. If the Preliminary Approval Order
`
`intended to allow any class member (whether they previously had objected or not) to object to
`
`Plaintiffs’ fee petition, it would have allowed for “objections” to the fee petition. Cf. Denan v.
`
`Trans Union LLC, 959 F.3d 290, 296 (7th Cir. 2021) (basic statutory construction rule is that
`
`identical words used in different parts of a statute have the same meaning). The Order’s use of
`
`the word “responses” indicates a different meaning than “objection” – likely, the ability for those
`
`who already have appeared in the case to file a response.
`
`
`
`Even if the Preliminary Approval Order could be read to allow new objectors to object to
`
`the fee petition after the objection deadline, Plaintiffs fail to address the fact that the Approved
`
`Notice only sets forth the single objection deadline of January 31, 2022. See Dkt. 187-2 at 3, 8.
`
`That notice was disseminated to millions of class members in November and December 2020.
`
`
`
`6
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 8 of 17 PageID #:11261
`
`
`
`While the Settlement website was later altered to include information about the April 14,
`
`2022 response date (see Ex. 2), that alteration did not cure the unlawful nature of the schedule.
`
`The alteration did not result in new notice being provided to the millions of class members who
`
`were sent email notice in November and December 2020 or who received notice via the TikTok
`
`App in November 2020. Moreover, the alteration was only made to the Settlement website’s
`
`homepage, not to the downloadable the Approved Notice. Thus, the alteration served to create
`
`more confusion because there were now two different versions of important dates without any
`
`indication to lay class members as to which version controlled. To the extent the altered notice
`
`on the Settlement website’s homepage is the controlling notice, that only highlights the defective
`
`and improper nature of the Approved Notice that remains accessible through the Settlement
`
`website. See Fed. R. Civ. P. 23(c)(2)(B) (requiring best notice practicable under the
`
`circumstances).
`
`III. The Settlement Does Not Satisfy the Adequacy Requirement of Rule 23(a)(4).
`
`
`A.
`
`The Minor Class Representatives and Their Counsel Cannot Adequately
`Represent the Interests of Minor Class Members.
`
`
`
`
`
`1.
`
`It Does Not Appear that the Minor Class Representatives Have
`Disaffirmed Their Agreements with TikTok, Resulting in a Conflict
`Between Them (and Their Counsel) and Minor Class Members.
`
`
`Nowhere in the fifty-nine substantive pages of the Motion for Final Approval do
`
`Plaintiffs address a critical issue – whether the minor class representatives have disaffirmed their
`
`agreements with TikTok and whether they did so before the mediation that resulted in the
`
`Settlement. See, generally, Dkt. 195. Given that Mark S. has affirmatively represented that A.S.
`
`has disaffirmed any agreement A.S. had with TikTok, Plaintiffs certainly would have made the
`
`same representation regarding the minor class representatives if the representation were true.
`
`Absent such disaffirmance, the minor class representatives stood in the same position as non-
`
`
`
`7
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 9 of 17 PageID #:11262
`
`minor class members at the time of the mediation – i.e., they were subject to arguments that they
`
`would have to arbitrate their claims again TikTok on an individual basis.
`
`
`
`Consistent with Plaintiffs’ position throughout the case, the Motion for Final Approval
`
`makes clear that the primary litigation risk herein stems from a purported arbitration agreement
`
`and class action waiver that class members allegedly agreed to. See Dkt. 195 at 12-13, 36; see
`
`also Dkt. 122 at 9-10, 12-13, 29; Dkt. 137 at 17. According to Plaintiffs, the purported arbitration
`
`and class action waiver provisions “would moot Plaintiffs’ class case as a threshold matter even
`
`before a motion to dismiss is considered, effectively valuing all asserted claims at $0 (absent
`
`individual pursuit of those claims in arbitration).” Dkt. 137 at 17 (emphasis added). This “sky is
`
`falling” view of the case may have been true for non-minor class members and minor class
`
`members who had not disaffirmed their agreement with TikTok at the time of the mediation.
`
`However, it was not true for the millions of minor class members with the ability to disaffirm
`
`their agreements with TikTok.
`
`
`
`Plaintiffs’ silence regarding disaffirmance by any of the minor class representatives, as
`
`well as the lack of any verified statement from any minor class member or representative thereof
`
`acknowledging any such disaffirmance, is a tacit admission that the minor class members failed
`
`to timely disaffirm their agreements with TikTok. As a result, at the mediation, Class Counsel
`
`and the minor class representatives could not have represented the best interests of the millions
`
`of minor class members who had viable, non-arbitrable claims and, as to minor class members
`
`under the age of 13, the need for different injunctive relief. This is because Class Counsel were
`
`necessarily handicapped by their obligation to obtain the best deal for their clients, whose claims
`
`were subject to an arbitration agreement that Class Counsel believed would make the claims
`
`worthless absent a deal.
`
`
`
`8
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 10 of 17 PageID #:11263
`
`
`
`Due to the conflict, it was and is necessary for minor class members with the ability to
`
`disaffirm their agreements to be represented by a class representative (and his/her counsel) who
`
`has disaffirmed his/her agreement with TikTok. When a court is confronted with a request for
`
`settlement-only class certification, as is the case here, it must give “undiluted, even heightened,
`
`attention” to Rule 23 protections “designed to protect absentees by blocking unwarranted or
`
`overbroad class definitions.” Amchem Products v. Windsor, 521 U.S. 591, 620 (1997). Included
`
`in this analysis is the adequacy inquiry under Rule 23(a)(4). See id. at 625. This inquiry “serves
`
`to uncover conflicts of interest between named parties and the class they seek to represent.” Id. A
`
`conflict arises where the interests of those within a single class are not aligned. See id. at 626.
`
`
`
`Here, a conflict unquestionably exists between non-minor class members and minor class
`
`members – and between the minor class members who have not disaffirmed their agreements
`
`with TikTok and those minor class members who have or could disaffirm. While Class Counsel
`
`claim that they “vetted” the issue of disaffirmance and considered arguments related thereto (see
`
`Dkt. 195 at 50), their words cannot overcome the inexorable fact that at all times they stood in a
`
`conflicted position.
`
`
`
`In the Motion for Final Approval, Plaintiffs state in cursory fashion that TikTok contends
`
`that disaffirmance purportedly presents individualized issues. Id. at 13. To the extent the
`
`statement is an argument, it is waived due to its perfunctory and undeveloped nature. See White
`
`v. United States, 8 F.4th 547, 552 (7th Cir. 2021). On the merits, the argument fails. As to minor
`
`class members, common issues predominate over any individualized questions. See Fed. R. Civ.
`
`P. 23(b)(3); see also Arenson v. Whitehall Convalescent and Nursing Home, Inc., 164 F.R.D.
`
`659, 666 (N.D. Ill. 1996). Those common questions include whether TikTok unlawfully profited
`
`from its use of class members’ unique identifying information, whether TikTok unlawfully
`
`
`
`9
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 11 of 17 PageID #:11264
`
`collected class members’ biometric data, whether TikTok unlawfully transferred class members’
`
`personally identifiable user data to servers in China, whether TikTok surreptitiously took class
`
`members’ private draft videos without notice or consent, and whether TikTok violated various
`
`state and federal statutes and common law.
`
`
`
`On the other hand, no evidence has been presented that any class member, let alone any
`
`minor class member, is subject to arbitration. Thus, at this time, the undeveloped argument
`
`regarding arbitration is wholly speculative. See Fischer v. Instant Checkmate LLC, No. 19 C
`
`4896, 2022 WL 971479, at *9 (N.D. Ill. Mar. 31, 2022). Further, merely because class members
`
`may be subject to arbitration is not a bar to class certification. See id. Moreover, should a time
`
`come when it is necessary to learn whether minor class members have or seek to disaffirm their
`
`agreements with TikTok, this can be done via a claim form.3 In that same form, disaffirming
`
`minor class members could also authorize TikTok to disable their TikTok accounts.
`
`
`
`TikTok’s alternative argument that even if minors could disaffirm their agreements, some
`
`of the minors have released their claims in this case due to the settlement in T.K. (Dkt. 195 at 13)
`
`is at direct odds with the understanding of the court in T.K. See T.K. Dkt. 94 at 44. In its final
`
`approval order, the court in T.K. stated with respect to the release in the settlement agreement in
`
`that case that “in light of representations by the parties, members of the Proposed Settlement
`
`Class remain free to pursue their BIPA claims in the pending MDL.” Id. While the court’s order
`
`solely referenced BIPA claims, there is no logical reason that it would not cover all of the claims
`
`in this case. Such an interpretation would be consistent with this Court’s statement at the
`
`preliminary approval hearing regarding any impact the Settlement release in this case would
`
`have on T.K.:
`
`
`3 Mark S. notes that the lack of evidence regarding class members who may wish to disaffirm results from
`a lack of discovery on the issue. To the extent the Court want additional information regarding
`disaffirmance, Mark S. respectfully submits the Court should allow limited discovery on the topic.
`10
`
`
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 12 of 17 PageID #:11265
`
`And the last one I had here on my list was the release excluding TikTok. But I
`think that Mr. Weibell’s statement is sufficient, and certainly if the settlement gets
`approved, it would count as judicial estoppel . . . . I think that at this point I’m
`satisfied that the release in this case would not encompass the claims that class
`members set forth in the T.K. class action.
`
`Dkt. 138-5 at Tr. 47:6-14 (emphasis added).
`
`
`
`Mark S. has always feared that TikTok’s strategy of litigating in two forums would result
`
`in TikTok later trying to play one case off of the other. See, e.g., Dkt. 59-1 (motion to enforce
`
`T.K. preliminary injunction). With TikTok’s present argument, the fear has come true. In an
`
`effort to strong-arm the Court into approving the Settlement, TikTok is taking the position that
`
`the failure to do so will result in T.K. class members being stuck with the paltry settlement in that
`
`case. However, based on the above-quoted statements of the court in T.K. and this Court, it is
`
`clear that TikTok’s position is not consistent with the understanding of either court. That there is
`
`any ambiguity is the direct consequence of Class Counsel and TikTok negotiating the Settlement
`
`here in violation of the T.K. preliminary injunction that precluded minor class members from
`
`asserting the claims in this case. See T.K. Dkt. 13 ¶ 16; see also Dkt. 59-1.
`
`2.
`
`Class Counsel’s Violation of the Preliminary Injunction Created a
`Conflict.
`
`
`As discussed above, when Class Counsel negotiated the settlement, they were acting in
`
`violation of the T.K. preliminary injunction. That violation necessarily precluded Class Counsel
`
`from advocating for T.K. class members in the same manner that they would had they not
`
`violated the preliminary injunction. This is because at any time during negotiations, TikTok
`
`could have informed Class Counsel that it was seeking to enforce the T.K. preliminary
`
`injunction, which would have precluded any participation of any T.K. class members in the
`
`MDL, absent transfer of T.K. into the MDL or vice versa. As a result, throughout the
`
`negotiations, Class Counsel was in a severely disadvantaged and conflicted position – i.e., should
`
`
`
`11
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 13 of 17 PageID #:11266
`
`Class Counsel push to obtain the true value of the T.K. class members’ claims (which claims
`
`were not hindered by an arbitration agreement) and risk TikTok enforcing the injunction, or
`
`should Class Counsel seek to maximize fees by taking what they could get for the T.K. class
`
`members? See Eubank v. Pella Corp., 753 F.3d 718, 720 (7th Cir. 2014). Because of the conflict,
`
`even if Class Counsel believed they were acting in the best interests of the T.K. class members,
`
`the Court cannot be certain of that.4 Further, because Class Counsel has not provided any
`
`information about what portion of the Settlement is attributable to the addition of the T.K. class
`
`members, there is no way to evaluate Class Counsel’s efforts on behalf of those class members.5
`
`Plaintiffs contend that Mark S. has failed to identify the conflict caused by the T.K.
`
`preliminary injunction and further contend that there could not have been a conflict because
`
`Plaintiffs asserted enjoined claims in this case. Dkt. 195 at 51. As discussed above, it is
`
`Plaintiffs’ assertion and pursuit of enjoined claims in this case that created the conflict.6 While
`
`Plaintiffs note that the court in T.K. did not enforce the preliminary injunction (id. at 52), they
`
`ignore that the court’s decision was based on the various representations in this case and in T.K.
`
`that T.K. class members would not be harmed if both cases were allowed to proceed
`
`simultaneously. See, supra; see also T.K. Dkt. 68. Based on those representations, the court in
`
`T.K. did not believe it was necessary to enforce the preliminary injunction. T.K. Dkt. 68.
`
`Through his efforts, Mark S. put TikTok in the position of having to make the representations.
`
`
`4 Mark S. recognizes that in his counsel’s fee petition, they argued that TikTok had its own reasons for
`wanting to settle T.K. class members’ claims in the MDL. See Dkt. 201 at 11-12. TikTok’s motivations
`have no bearing on Class Counsel’s conflict.
`5 As a matter of simple math, Mark S.’s counsel has attributed a pro rata share of the $92 million
`common fund to the T.K. class members. See Dkt. 201 at 2. That figure underestimates the value that
`should have been obtained, given that T.K. class members are not necessarily bound by any arbitration
`agreement.
`6 Plaintiffs state that Mark S. argued that T.K. did not involve BIPA claims. Dkt. 195 at 52, n.22. It is
`undisputed that the plaintiffs in T.K. did not allege BIPA claims. However, the T.K. settlement sought to
`release BIPA claims without providing fair value. Indeed, that was a major part of Mark S.’s objections in
`T.K.
`
`
`
`12
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 14 of 17 PageID #:11267
`
`Plaintiffs also assert that Mark S. contends that T.K. class members should get nothing
`
`from the Settlement because they released their claims in T.K. Id. at 52. The record belies the
`
`assertion. Mark S. has continuously sought to best position the T.K. class members, as
`
`demonstrated by his efforts to negate the broad release in T.K., obtain a higher settlement value
`
`in T.K., and obtain independent representation for T.K. class members (and all minors) in this
`
`case.
`
`IV.
`
`
`
`
`The Suspicious Circumstances Surrounding the Settlement Require a Calculation of
`the Net Expected Value.
`
`In his objections, Mark S. raised serious concerns regarding the suspicious circumstances
`
`surrounding the Settlement, which require calculation of the net expected value of continued
`
`litigation. See Dkt. 187 at 12-15. Unable to address the full scope of Mark S.’s argument,
`
`Plaintiffs contend that Mark S. merely stated that it was suspicious that there was “no basis for
`
`the $92 million settlement amount.” Dkt. 195 at 52. However, Mark S. set forth numerous
`
`circumstances that make the settlement suspicious and require calculation of the net expected
`
`value of continued litigation. While Plaintiffs claim that the Court already rejected this argument
`
`(see id.), they ignore the authority cited by Mark S. that provides that where suspicious
`
`circumstances surround a settlement, the Court should calculate the net expected value. See Dkt.
`
`187 at 12-15; see also Reynolds v. Beneficial Nat’l Bank, 288 F.3d 277, 284 (7th Cir. 2002); see
`
`also Wong v. Accretive Health, Inc., 773 F.3d 859, 864 (7th Cir. 2014).
`
`V.
`
`
`
`The Notice Plan Does Not Provide the Best Notice Practicable.
`
`In his objections, Mark S. demonstrated why the target audience of the media notice
`
`portion of the Notice Plan was not the best notice practicable under the circumstances. See Dkt.
`
`187 at 15-16. Ignoring the demographics of TikTok users, the median age of the targeted
`
`audience was 33.7. Even if Plaintiffs’ argument that they sought to target parents of users
`
`
`
`13
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 15 of 17 PageID #:11268
`
`because the parents are the ones who should get the notice is taken as true, Plaintiffs fail to
`
`explain at what age a person is old enough to be able to responsibly receive notice. Certainly, the
`
`age is well below 33.7 years old.
`
`VI.
`
`
`
`
`There Is No Inconsistency Between Mark S.’s Objections and His Counsel’s Fee
`Petition.
`
`
`Plaintiffs take issue with the fact that Mark S.’s counsel sought fees in T.K. for all of his
`
`efforts on behalf of T.K. class members in that case and here. See Dkt. 195 at 48-49. Mark S.
`
`notes that since Plaintiffs filed their Motion for Final Approval, Mark S.’s counsel has filed a fee
`
`petition in this case. Dkt. 201. In that fee petition, Mark S.’s counsel set forth the work
`
`performed on behalf of T.K. class members and the benefits obtained for T.K. class members. See
`
`id.
`
`
`
`Plaintiffs disagree with Mark S.’s claim that his work on behalf of T.K. class members
`
`resulted in T.K. class members being able to participate in the Settlement here. See Dkt. 195 at
`
`48-49. As set forth in the fee petition of Mark S.’s counsel, which Mark S. incorporates here,
`
`Mark S.’s efforts prevented the T.K. class members from quickly releasing their claims in T.K.
`
`before this case settled. Moreover, Mark S.’s efforts put TikTok in the position of not knowing if
`
`it ever would obtain the release in T.K., thereby incentivizing TikTok to try to resolve the T.K.
`
`class members’ claims here.
`
`
`
`Plaintiffs further take issue with Mark S. both objecting to the Settlement here and
`
`seeking attorneys’ fees for the additional benefits obtained for T.K. class members. See id. Mark
`
`S.’s positions are not inconsistent. As discussed throughout this memorandum and elsewhere,
`
`Mark S. does not believe the Settlement is fair, reasonable or adequate and does not believe that
`
`the Court should approve it. At the same time, Mark S. recognizes that the Court may approve
`
`the Settlement. While Mark S. does not believe that T.K. class members received fair value for
`
`
`
`14
`
`

`

`Case: 1:20-cv-04699 Document #: 214 Filed: 04/14/22 Page 16 of 17 PageID #:11269
`
`their claims in T.K. and does not believe that the Settlement here provides them with fair value,
`
`Mark S. has increased the value of their claims. Thus, Mark S.’s counsel has sought fees for the
`
`benefits they have obtained for the T.K. class members.
`
`
`
`While Plaintiffs try to cast Mark S. as seeking fees for the benefits Plaintiffs obtained in
`
`the Settlement (see Dkt. 195 at 49), that is not the case. As a result of Mark S.’s efforts, the value
`
`that TikTok has agreed to pay for the T.K. class members’ claims has increased from $1.1
`
`million to over $7.3 million. The amount should be more. But if the Court approves the
`
`Settlement in its current form, Mark S.’s counsel is entitled to attorneys’ fees for the increased
`
`value of the T.K. class members’ claims.
`
`CONCLUSION
`
`
`
`For the foregoing reasons, the Court should not grant final approval to the Settlement.
`
`Dated: April 14, 2022
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Mike Kanovitz
`Scott R. Drury
`LOEVY & LOEVY
`31

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket