Litigation funder backs cases over NJ law shielding info on judges, officials (updated)

Zillow

11/10/2024 23:01

(Adds further details on case, comment from companies in
paragraphs 1, 6-9)
    By Nate Raymond
       Oct 11 (Reuters) - A data-deletion firm that has filed
over 140 lawsuits against businesses accused of running afoul of
a New Jersey law designed to shield the release of addresses and
other personal information of judges, police and prosecutors is
being backed by a third-party litigation funder, according to
court papers.
    Atlas Data Privacy, a software firm that has been assigned
claims by over 19,000 people eligible for protection under the
law, disclosed it expected to soon deploy funding provided by
Parabellum Capital in a Thursday filing in New Jersey federal
court.
    The New York-based litigation funder, which has over $1
billion in assets under management, spun out of Credit Suisse in
2012 and provides third-party funding to litigants in commercial
disputes in exchange for a share of any recovery.
    In January, it said it closed on its third private fund with
total investor commitments of $754 million.
    Often funding arrangements between plaintiffs and
third-party litigation funders go undisclosed. But New Jersey's
federal court in 2021 adopted a unique rule requiring litigants
to detail when they have such funding. 
    Atlas, which is represented by PEM Law, Boies Schiller
Flexner and Morgan & Morgan, said that it was receiving
non-resource financing that would be "collateralized by
litigation proceeds." It did not provide details on the
financial terms of the arrangement.
    Matt Adkisson, Atlas's president, in a statement said that
the corporate data brokers it was suing were spending "enormous"
sums of money on litigation and lobbying to weaken Daniel's Law
and that it was thankful for Parabellum's support.
        "With this additional funding we now have the resources
necessary to hold the worst offenders fully accountable for
their reckless disregard of the law," he said.
  
        A spokesperson for Parabellum said it would "serve as a
passive financial partner of Atlas, which is playing an
important role in enforcing compliance with of one of the most
meaningful privacy laws on record."
  
    The disclosure came a week after various companies sued by
Atlas went before U.S. District Judge Harvey Bartle in Camden to
argue that its lawsuits should be dismissed on the grounds that
the New Jersey law known as Daniel's Law violated the companies'
free speech rights under the U.S. Constitution's First
Amendment.
    The measure was signed into law in 2020 by Democratic
Governor Phil Murphy in response to the fatal shooting of the
20-year-old son of U.S. District Judge Esther Salas at her New
Jersey home by a disgruntled lawyer.
    The law, which has since been expanded, allows current and
former judges, law enforcement, prosecutors, and other officials
to request that private entities not disclose their home
addresses or unpublished home phone numbers.
    Companies that do not comply with an official's request to
not disclose their information can be sued for damages.
    A similar federal law named after Salas' son, the Daniel
Anderl Judicial Security and Privacy Act, was enacted by
Congress in late 2022 and protects judges by shielding their
personal information online.
    Atlas launched a wave of lawsuits earlier this year on
behalf of individuals covered by the law against real estate
businesses, marketing companies, data brokers and credit
reporting agencies. Defendants include CoStar Group, Oracle
Corp, Zillow and Thomson Reuters, Reuters' parent company.
    Thomson Reuters in a statement said it was aware of the
litigation funding but was focused on addressing the merits of
the case. It said Daniel's Law "attempts to serve a laudable
goal" but in its current form violates the First Amendment.
    Individuals who assigned claims to Atlas to pursue in court
stand to receive 65% of any judgment it recovers, according to a
court filing filed on Thursday. It has contingency-fee
arrangements with its law firms, according to another filing.
    The case is Atlas Data Privacy Corp v. LightBox Parent LP,
et al, U.S. District Court for the District of New Jersey, No.
22-4105.
    For Atlas Data Privacy Corp: Rajiv Parikh of PEM Law, Mark
Mao of Boies Schiller Flexner and John Yanchunis of Morgan &
Morgan 
    For LightBox, et al: Kevin McDonough of Latham & Watkins
    For New Jersey: Daniel Vannella of the New Jersey Office of
the Attorney General
    
    Read more:
    New Jersey defends privacy law shielding judges, prosecutors
    US judicial panel to examine litigation finance disclosure
    Litigation funders howl as N.J. adopts disclosure
requirement

 (Reporting by Nate Raymond in Boston)
 ((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond;
347-243-6917; Reuters Messaging:
nate.raymond.thomsonreuters.com@reuters.net))