Opinion

The State Of Texas v. Google, LLC

Court
District Court, S.D. New York
Filed
Jun 12, 2023
Cited by
0 cases
Authority
More cited than 27.6%

The opinion

Freshfields Bruckhaus Deringer us LLP

Via ECF Washington

700 13th Street, NW

10th Floor

Washington, DC 20005-3960

The Honorable P. Kevin Castel T +1 202 777 4500 (Switchboard)

United States District Judge F □ 00 a □□□ (Direct)

Southern District of New York E eric.mahr@freshfields.com

500 Pearl Street www.freshfields.com

New York, NY 10007-1312

June 12, 2023

Re: In re Google Digital Advertising Antitrust Litigation, No. 1:21-md-03010 (PKC);

State of Texas, et al. v. Google LLC, No. 1:21-cv-06841 (PKC)

Dear Judge Castel:

On behalf of Defendant Google LLC (“Google”), we write to respectfully request entry of

an order that would stay transfer of State Plaintiffs’ case to allow Google to seek appellate review

of the Judicial Panel on Multidistrict Litigation’s (“JPML’s”) June 5, 2023 Order remanding the

above-captioned case to the Eastern District of Texas. See Exhibit A. Absent such an order, the

Clerk may transfer the case as soon as tomorrow morning, which may deprive Google of judicial

review of the JPML’s decision. No conference is scheduled at this time.

On December 29, 2022, President Biden signed the State Antitrust Enforcement Venue Act

(“Venue Act”) into law as part of a consolidated appropriations bill. The Venue Act amended 28

U.S.C. § 1407(g) to exempt antitrust actions brought by state attorneys general from inclusion in

multidistrict litigations. See Consolidated Appropriations Act, 2023, Pub. L. No. 117-328, Div.

GG, Title III, § 301, 136 Stat. 4459, 5970. As amended, section 1407(g) now reads: “Nothing in

this section shall apply to any action in which the United States or a State is a complainant arising

under the antitrust laws.”

Nearly two months later, on February 27, 2023, State Plaintiffs filed a motion with the

JPML seeking remand of this case to the Eastern District of Texas. See Dkt. 478. On June 5,

2023, the JPML granted the motion. See Exhibit A. Google respectfully disagrees with the

JPML’s decision and intends to petition the Second Circuit on or before June 20, 2023 for a writ

of mandamus reversing the remand order, along with a motion to expedite review.

Under Local Civil Rule 83.1, the Clerk of this Court, “unless otherwise ordered, shall upon

the expiration of seven (7) days effectuate the transfer of the case to the transferee court.” Asa

result, this case could be transferred as soon as tomorrow morning, Tuesday, June 13. If the case

is transferred, the Second Circuit risks losing jurisdiction to grant a writ of mandamus reversing

the JPML’s order. See In re Warrick, 70 F.3d 736, 739-40 (2d Cir. 1995). To ensure that the

Second Circuit retains jurisdiction to grant the forthcoming mandamus petition, earlier today,

Google filed an emergency motion requesting that the JPML stay its remand order. See Exhibit

B. In light of the short deadline and dramatic consequences, out of an abundance of caution,

Google is also requesting that this Court enter an order directing the Clerk not to transfer this case

before the Second Circuit rules on Google’s mandamus petition.1

Although the procedural posture is fairly unusual, our request resembles one for a stay

pending appeal. “The factors relevant in assessing a motion for a stay pending appeal are [1] the

applicant’s ‘strong showing that he is likely to succeed on the merits,’ [2] irreparable injury to the

applicant in the absence of a stay, [3] substantial injury to the nonmoving party if a stay is issued,

and [4] the public interest.” New York v. United States Dep’t of Homeland Sec., 974 F.3d 210, 214

(2d Cir. 2020) (citing Nken v. Holder, 556 U.S. 418, 434 (2009)). All of these factors weigh in

favor of entry of the requested order.

To establish a likelihood of success, Google need not show a certainty of winning, or even

that it is “more likely than not to succeed.” Citigroup Glob. Mkts., Inc. v. VCG Special

Opportunities Master Fund Ltd., 598 F.3d 30, 37 (2d Cir. 2010). It may also satisfy that

requirement if “serious” legal questions are involved and the balance of equities “heavily favors a

stay.” Id. Under either approach, a stay should issue here. As explained in more detail in the

memorandum accompanying Google’s stay motion filed with the JPML, Google’s mandamus

petition is likely to succeed – or at least raises serious legal questions – because the JPML erred in

interpreting the Venue Act. Specifically, the JPML misread Landgraf v. USI Film Prods., 511

U.S. 244 (1994), and other Supreme Court precedent to require retroactive application of every

procedural change, rather than properly focusing on whether Congress clearly intended for an

amendment to apply retroactively to undo procedures that have already been completed. See

Exhibit B, Mem. at 5-9. Mandamus provides the only avenue for review of the JPML’s order. See

28 U.S.C. § 1407(e) (“No proceedings for review of any order of the panel may be permitted except

by extraordinary writ . . . .”); Exhibit B, Mem. at 10. And mandamus is generally available to

reverse erroneous transfer decisions. E.g., SongByrd, Inc. v. Est. of Grossman, 206 F.3d 172, 176

& n.5 (2d Cir. 2000); see also Exhibit B, Mem. at 10-11.

Google would suffer two types of irreparable injury if transfer of this case is not stayed.

First, if the case is transferred to the Eastern District of Texas, Second Circuit precedent suggests

that the appeals court will no longer consider itself to have jurisdiction to grant mandamus relief

1 If the Court is not inclined to stay transfer for that long, Google requests that transfer be stayed until at least June

21, 2023 to permit Google to seek a stay from the Second Circuit.

June 12, 2023

Page 3

reversing the remand order, and Google may lose the opportunity to seek this relief by mandamus

altogether. See In re Warrick, 70 F.3d 736, 739-40 (2d Cir. 1995). See Exhibit B, Mem. at 11-13.

Second, absent a stay, Google would lose many of the efficiencies of participating in this MDL

and be forced to litigate substantially overlapping issues both in this Court and in the Eastern

District of Texas (as well as in the Eastern District of Virginia). See Exhibit B, Mem. at 14.

State Plaintiffs, on the other hand, would not be injured by continuing to litigate their

claims in this Court while the Second Circuit considers the mandamus petition. See Exhibit B,

Mem. at 15. To the contrary, as long as they remain in the MDL, they will continue to enjoy the

benefits of coordinated discovery. See Dkt. 564 4 1(s) (excluding State Plaintiffs from

coordination when their case is not “part of the MDL (unless and until a further order directs

otherwise)”).

Finally, staying transfer would be in the public interest because it would avoid potentially

duplicative litigation, thereby conserving judicial resources. See In re Gorsoan Ltd., 2020 WL

4194822, at *8 (S.D.N.Y. July 21, 2020) (granting motion to stay pending appeal and finding “that

the public interest factor militates in favor of a stay” based on, inter alia, “the public interest in...

preserving judicial resources by avoiding unnecessary proceedings while the appeal in this action

is pending”). Indeed, the JPML previously identified the various benefits that would result from

centralizing the related actions in this MDL, including the elimination of duplicative discovery

and avoiding the risk of inconsistent judgments. See In re Digital Advert. Antitrust Litig., 555 F.

Supp. 3d 1372, 1375 (U.S. Jud. Pan. Mult. Lit. 2021); see also Exhibit B, Mem. at 15-16.

As the Clerk may transfer this case to the Eastern District of Texas as soon as tomorrow

morning, Google appreciates the Court’s consideration of this letter and respectfully requests entry

of an order directing the Clerk not to transfer this case before the Second Circuit rules on Google’s

forthcoming mandamus petition.

week after the Judicial Panel on Multidistrict Respectfully submitted,

issued an Order of remand, Google applies to

for a stay of that Order, tobe issued by /Eric Mahr

today. Google states that it also has filed an Eric Mahr

motion to the JPML for a stay and brings its FRESHFIELDS BRUCKHAUS

to this Court "out of an abundance of DERINGER US LLP

Google's stay application is properly considered On 13th Street, NW

JPML and not this Court. Google points to no th Floor

that gives this Court jurisdiction to sit in review Washington, DC 20005

□□ Telephone: (202) 777-4545

JPML. Its application is therefore DENIED. Email: eric.mahr@freshfields.com

-2023

United States District Judcoe

Justina K. Sessions

WILSON SONSINI GOODRICH &

ROSATI

Professional Corporation

One Market Plaza

Spear Tower, Suite 3300

San Francisco, California 94105

Telephone: (415) 947-2197

Email: jsessions@wsgr.com

Counsel for Defendant Google LLC

CC: All Counsel of Record (via ECF)

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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