`
`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