Wozniak v. YouTube, LLC
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The plaintiffs in this case, Steve Wozniak and 17 individuals who fell victim to a cryptocurrency scam, sued YouTube and Google. The plaintiffs alleged that the defendants knowingly hosted, promoted, and profited from a scam that falsely claimed Wozniak was hosting a live event, during which anyone who sent cryptocurrency to a specified account would receive double the amount in return. The defendants argued that the Communications Decency Act of 1996 provided immunity because the plaintiffs were trying to treat them as publishers of third-party content. However, the plaintiffs contended that they were not treating the defendants as publishers but were instead seeking to hold them liable for engaging in actions they knew would further criminal activity.
The Court of Appeal of the State of California Sixth Appellate District held that most of the plaintiffs' claims were barred by the Communications Decency Act as they sought to treat the defendants as publishers of third-party content. However, the court found that the plaintiffs' claim that defendants created their own content and materially contributed to the scam's illegality by providing verification badges to hijacked YouTube channels potentially fell outside the scope of immunity. The court concluded that the trial court erred in not granting leave to amend the claims related to verification badges. The judgment was reversed and remanded for further proceedings.
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