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Khoday v. Symantec Corp.

Citations: 93 F. Supp. 3d 1067; 2015 WL 1275323Docket: Civil No. 11-180 (JRT/TNL)

Court: District Court, D. Minnesota; April 27, 2015; Federal District Court

Narrative Opinion Summary

The case involves a class action lawsuit brought by plaintiffs against Symantec Corporation and Digital River, Inc., alleging violations of consumer protection laws due to misleading sales practices related to download insurance products. The plaintiffs claim that the defendants misrepresented the necessity and value of products like Norton Download Insurance, leading to consumer reliance and purchase under false pretenses. The case addresses multiple legal issues, including summary judgment and the admissibility of expert testimony under the Federal Rules of Evidence. The court denied Symantec's motion for summary judgment, finding that genuine issues of material fact existed regarding the defendants' alleged misleading statements. The court also ruled on various Daubert motions, allowing certain expert testimonies while restricting others based on qualifications and reliability. Additionally, the court granted the plaintiffs' motion to modify the class certification order, adjusting the timeframe for claims against Digital River and Symantec. The outcome leaves key factual disputes, particularly regarding consumer deception and the necessity of download insurance, to be resolved at trial.

Legal Issues Addressed

Admissibility of Expert Testimony under Federal Rule of Evidence 702

Application: The court evaluated the admissibility of expert testimony, partially excluding the testimony of Defendants’ expert Kalyanam and allowing the testimony of Plaintiffs’ experts Gaskin, Taylor, and Herscovici, focusing on their qualifications and the reliability of their methodologies.

Reasoning: The Court supports Dr. Kalyanam’s qualifications and concludes that he possesses adequate expertise to testify on eCommerce and marketing strategies. The Court allows for the Plaintiffs to challenge Dr. Kalyanam's conclusions through cross-examination.

California Unfair Competition Law (UCL) and Misleading Representations

Application: The court found a genuine issue of material fact regarding whether Symantec's representations about the necessity of Norton Download Insurance misled consumers, affecting the plaintiffs' purchasing decisions.

Reasoning: Khoday alleged that Symantec misled customers by auto-populating NDI in shopping carts and claiming it 'extends' the download window, suggesting that repurchasing was the only option after the sixty-day period.

Class Action Certification Modification

Application: The court granted the plaintiffs' unopposed motion to modify the class certification order, extending the class period for claims against Digital River and adjusting the unjust enrichment claims window against Symantec.

Reasoning: The Court grants the Plaintiffs' motion to modify the class certification.

Role of Jury in Determining Material Misrepresentation

Application: The court emphasized that whether Symantec's representations constituted material misrepresentation should be decided by a jury, thus denying summary judgment.

Reasoning: The court, considering the evidence favorably for the nonmoving party, finds a genuine issue of material fact regarding whether Symantec's overall representations misled customers.

Summary Judgment Standard under Federal Rule of Civil Procedure 56(a)

Application: The court denied Symantec's motion for summary judgment, finding genuine issues of material fact regarding whether Symantec's representations about Norton Download Insurance were misleading.

Reasoning: The Court, viewing the facts favorably for the nonmoving party, concluded that there are genuine issues of material fact regarding whether the Defendants made misleading statements or omissions that harmed the Plaintiffs.