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Case: 1:22-cv-02480 Document #: 16 Filed: 08/16/22 Page 1 of 5 PageID #:112
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE NORTHERN DISTRICT OF ILLINOIS
`EASTERN DIVISION
`
`
`ADRIAN COSS and MARIBEL OCAMPO,
`individually and on
`behalf of all others similarly situated,
`
`
`
`
`Case No. 1:22-cv-02480
`
`v.
`
`SNAP INC.,
`
`
`
` Plaintiffs,
`
`
`Defendant.
`
`
`Hon. Robert M. Dow, Jr.
`
`DEFENDANT SNAP INC’S UNOPPOSED MOTION FOR A STAY PENDING THE
`ILLINOIS SUPREME COURT’S DECISION IN COTHRON v. WHITE CASTLE
`
`Defendant Snap Inc. (“Snap”) respectfully seeks a temporary stay of this action pending
`
`the Illinois Supreme Court’s decision in Cothron v. White Castle, Inc., No. 128004. Cothron,
`
`which has already been fully briefed and argued, addresses issues that are key to whether this Court
`
`has subject matter jurisdiction over Plaintiffs’ claims brought under the Illinois Biometric
`
`Information Privacy Act (“BIPA”). Plaintiffs do not oppose the relief requested in this motion. In
`
`support of its motion, Snap states as follows.
`
`1.
`
`Snap is a technology company that developed and operates the “Snapchat” app,
`
`which is a smart phone camera application created to help people communicate through short
`
`videos and images. Snapchat includes popular features called “Lenses” and “Filters,” which allow
`
`users to edit their photos and videos to include real-time special effects and sounds.
`
`2.
`
`On May 11, 2022, Plaintiffs filed a class action against Snap alleging that Lenses
`
`and Filters violate BIPA, and asserting that this Court has jurisdiction over the claims under the
`
`Class Action Fairness Act (“CAFA”), 28 U.S.C. § 1332(d). On July 1, 2022, Snap filed a motion
`
`to dismiss for lack of subject matter jurisdiction, arguing that the number of individuals who opted
`
`
`
`- 1 -
`
`
`
`

`

`Case: 1:22-cv-02480 Document #: 16 Filed: 08/16/22 Page 2 of 5 PageID #:113
`
`out of Snap’s arbitration agreement was too small to support the statutory minimum of $5 million
`
`required under CAFA. Dkt. 11.
`
`3.
`
`In response to Snap’s motion to dismiss, Plaintiffs filed an amended complaint on
`
`August 9, 2022. Dkt. 15. The amended complaint is no longer pleaded as a class action and is
`
`instead brought by 31 plaintiffs individually. Plaintiffs allege subject matter jurisdiction under the
`
`ordinary diversity jurisdiction statute, 28 U.S.C. § 1332(a), and not under CAFA. Under Section
`
`1332(a), each plaintiff must be diverse from each defendant and each plaintiff must plead at least
`
`$75,000 individually. 28 U.S.C. § 1332(a)(1); Clark v. State Farm Mut. Auto. Ins. Co., 473 F.3d
`
`708, 711 (7th Cir. 2007) (“It is well settled that ... the separate claims of multiple plaintiffs against
`
`a single defendant cannot be aggregated to meet the jurisdictional amount.”).
`
`4.
`
`Each of the 31 Plaintiffs alleges he or she is a citizen of Illinois and is therefore
`
`diverse from Snap, which is a citizen of California and Delaware. Am. Compl. ¶ 27. And each
`
`Plaintiff alleges he or she each incurred more than the required minimum of $75,000 in damages.
`
`Id.
`
`5.
`
`BIPA provides for statutory damages of $1,000 per “violation” (if negligent) or
`
`$5,000 per “violation” (if reckless or intentional). 740 ILCS 14/20. To allege an amount in
`
`controversy of more than $75,000, Plaintiffs rely on what is widely referred to as the “per scan”
`
`theory of BIPA liability. Under this theory, a separate violation of BIPA occurs each time a
`
`defendant collects a plaintiff’s biometric data. See Cothron v. White Castle System, Inc., 20 F.4th
`
`1156, 1162 (7th Cir. 2021). Plaintiffs allege they each used the Snapchat app at least 75 times,
`
`Am. Compl. ¶ 28, and that they therefore have satisfied the amount in controversy requirement.
`
`6.
`
`Snap, however, rejects the “per scan” theory and contends that a plaintiff is
`
`“aggrieved” only by the initial collection of his or her biometric data, and a new claim does not
`
`
`
`- 2 -
`
`
`
`

`

`Case: 1:22-cv-02480 Document #: 16 Filed: 08/16/22 Page 3 of 5 PageID #:114
`
`accrue with each subsequent collection. Cothron, 20 F.4th at 1162. If this single-violation theory
`
`is correct, Plaintiffs could recover only for Snap’s initial alleged collection of their biometric data,
`
`limiting their damages to $1,000 (or $5,000 for a reckless or intentional violation). Because each
`
`Plaintiff could recover at no more than a maximum of $5,000 in statutory damages, the Court
`
`would lack subject matter jurisdiction.
`
`7.
`
`In Cothron, the Seventh Circuit addressed these competing theories of claim
`
`accrual and statutory damages. After addressing the arguments on both sides, the court found itself
`
`“genuinely uncertain” as to the correct answer to the “novel[] and uncertain[]” question. Id. at
`
`1166. The Seventh Circuit therefore certified the question to the Illinois Supreme Court. Id. The
`
`Illinois Supreme Court accepted the certified question. The appeal is briefed and the court heard
`
`oral argument on May 15, 2022. A decision is expected at any time.
`
`8.
`
`The Illinois Supreme Court’s decision in Cothron likely will resolve (or at least
`
`shed light on) the question of this Court’s subject matter jurisdiction.
`
`9.
`
`In these circumstances, Snap respectfully submits that this Court should stay this
`
`action pending the Illinois Supreme Court’s decision in Cothron, which is expected to issue shortly.
`
`It does not make sense to move forward when the threshold issue of subject matter jurisdiction is
`
`in doubt, and the Cothron decision should soon clarify that issue.
`
`10. Counsel for Snap has conferred with counsel for Plaintiffs, and Plaintiffs do not
`
`oppose a stay pending the Illinois Supreme Court’s decision in Cothron.
`
`WHEREFORE, Snap respectfully requests that the Court enter an order staying this action
`
`pending the Illinois Supreme Court’s decision in Cothron. Within 14 days after Cothron is decided,
`
`the parties will confer and submit to the Court a proposed course of action, depending on the
`
`outcome of Cothron.
`
`
`
`- 3 -
`
`
`
`

`

`Case: 1:22-cv-02480 Document #: 16 Filed: 08/16/22 Page 4 of 5 PageID #:115
`
`
`
`Dated: August 16, 2022
`
`
`
`
`
`
`Respectfully submitted,
`
`SNAP INC.
`
`By: /s/ Elizabeth B. Herrington
`By Its Attorney
`
`
`
`Elizabeth B. Herrington
`Gregory T. Fouts
`Alborz Hassani
`Morgan, Lewis & Bockius LLP
`110 North Wacker Drive, Suite 2800
`Chicago, IL 60606-1511
`(312) 324-1000
`beth.herrington@morganlewis.com
`gregory.fouts@morganlewis.com
`al.hassani@morganlewis.com
`
`Counsel for Defendant Snap Inc.
`
`- 4 -
`
`
`
`

`

`Case: 1:22-cv-02480 Document #: 16 Filed: 08/16/22 Page 5 of 5 PageID #:116
`
`CERTIFICATE OF SERVICE
`
`I, Elizabeth B. Herrington, hereby certify that on this 16th day of August, 2022, I caused a
`
`copy of the foregoing UNOPPOSED MOTION FOR A STAY to be served upon all counsel of
`
`record via the Court’s CM/ECF system.
`
`
`
`
`
`
`/s/ Elizabeth B. Herrington
`Elizabeth B. Herrington
`
`
`
`
`
`
`
`

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