MDL No. 2357 - IN RE: Zappos.com, Inc., Customer Data Security Breach Litigation

Filing 1

TRANSFER ORDER - MDL No. 2357 : ORDERED that pursuant to 28 U.S.C. § 1407, the actions listed on Schedule A (attached) and pending outside the District of Nevada are transferred to the District of Nevada and, with the consent of that court, assigned to the Honorable Robert Clive Jones for coordinated or consolidated pretrial proceedings. Signed by John G. Heyburn II, Chairman, Panel on Multidistrict Litigation.(Copies have been distributed pursuant to the NEF - DRM)

Case NV/3:12-cv-00072 Document 20 Filed 06/13/12 Page 1 of 3

UNITED STATES JUDICIAL PANEL
on
MULTIDISTRICT LITIGATION

IN RE: ZAPPOS.COM, INC., CUSTOMER
DATA SECURITY BREACH LITIGATION

MDL No. 2357

TRANSFER ORDER

Before the Panel:* Pursuant to 28 U.S.C. § 1407, defendant Zappos.com, Inc. (Zappos)
moves for centralized pretrial proceedings of this litigation in the District of Nevada. Defendant’s
motion includes nine actions pending in five districts, as listed on Schedule A. The Panel also has
been notified of an additional related action.1
No party opposes centralization, though there is some disagreement regarding the selection
of the transferee district. Plaintiffs in the District of Nevada actions, as well as plaintiff in the District
of Massachusetts action, suggest centralization in the District of Nevada. Responding plaintiffs in
various actions or potential tag-along actions support centralization in one or more of the following
districts: the Western District of Kentucky, the Southern District of Florida, or the District of
Massachusetts.
On the basis of the papers filed and the hearing session held, we find that these nine actions
involve common questions of fact, and that centralization will serve the convenience of the parties
and witnesses and promote the just and efficient conduct of this litigation. These actions share factual
questions arising from a security breach in Zappos’s computer networks in mid-January 2012.
Plaintiffs contend, inter alia, that Zappos failed to adequately safeguard the financial and personally
identifying information and related data affecting an estimated 24 million Zappos customers. Plaintiffs
further assert that Zappos improperly responded to the data breach. We agree with the parties that
centralization will eliminate duplicative discovery; prevent inconsistent pretrial rulings, including with
respect to class certification; and conserve the resources of the parties, their counsel, and the
judiciary.
We conclude that the District of Nevada is an appropriate district to serve as the transferee
forum for this litigation. This district has the strongest connection to this litigation, inasmuch as
Zappos is based in Hendersonville, Nevada. According to the chief information technology officer
*

Judge Kathryn H. Vratil did not participate in the decision of this matter. Additionally, a
Panel member who could be a member of the putative classes in this docket renounced participation
in these classes and participated in this decision.
1

This action, pending in the Southern District of California, and any other related actions are
potential tag-along actions. See Panel Rules 1.1(h), 7.1 and 7.2.

Case NV/3:12-cv-00072 Document 20 Filed 06/13/12 Page 2 of 3

-2of Zappos, personnel who responded to the data breach are located in this district, as are the servers
from which customer data was obtained, in addition to other potentially relevant documents and
witnesses. With a pending Nevada state court action, centralization in the District of Nevada will
facilitate coordination between the federal and state court actions.
IT IS THEREFORE ORDERED that pursuant to 28 U.S.C. § 1407, the actions listed on
Schedule A and pending outside the District of Nevada are transferred to the District of Nevada and,
with the consent of that court, assigned to the Honorable Robert Clive Jones for coordinated or
consolidated pretrial proceedings.

PANEL ON MULTIDISTRICT LITIGATION

_________________________________________
John G. Heyburn II
Chairman
W. Royal Furgeson, Jr.
Paul J. Barbadoro
Charles R. Breyer

Barbara S. Jones
Marjorie O. Rendell

Case NV/3:12-cv-00072 Document 20 Filed 06/13/12 Page 3 of 3

IN RE: ZAPPOS.COM, INC., CUSTOMER
DATA SECURITY BREACH LITIGATION

SCHEDULE A

Middle District of Florida
Josh Richards v. Amazon.com, Inc., C. A. No. 6:12-00212
Southern District of Florida
Sylvia St. Lawrence v. Zappos.com, Inc., C.A. No. 0:12-60133
Western District of Kentucky
Theresa D. Stevens v. Amazon.com, Inc. C.A. No. 3:12-00032
Stacy Penson v. Amazon.com, Inc., C.A. No. 3:12-00036
Tara J. Elliott, et al. v. Amazon.com, Inc., C.A. No. 3:12-00037
District of Massachusetts
Dahlia Habashy v. Amazon.com, Inc., C.A. No. 1:12-10145
District of Nevada
Stephanie Priera v. Zappos.com, Inc., C.A. No. 2:12-00182
Shari Simon, et al. v. Amazon.com, Inc., C.A. No. 2:12-00232
Robert Ree v. Amazon.com, Inc., dba Zappos.com, C.A. No. 3:12-00072

MDL No. 2357