Hey Favor Opposes Motion to Lift Stay Amid Bankruptcy Proceedings

The court should maintain the stay in a privacy case until defendant Hey Favor’s bankruptcy proceedings are complete, said the other defendants in their Monday opposition (docket 3:23-cv-00059) to plaintiff “Jane Doe’s” motion to lift a stay (see 2306070053) in her privacy class action in U.S. District Court for Northern California in San Francisco. The court automatically stayed Doe v. Hey Favor in April, when Hey Favor filed a voluntary petition for Chapter 11 bankruptcy protection (see 2304280021). Plaintiff Doe alleges Hey Favor knowingly and intentionally sent personally identifiable information about her medical history to Meta, TikTok, and analytics company FullStory. This month, Doe moved to voluntarily dismiss Hey Favor from her privacy claims, saying her plan would allow the case to proceed “expeditiously,” without imposing liability on, or interfering with, Favor’s bankruptcy proceedings (see 2306070053). Defendants said Monday that potential prejudice to or burden on Hey Favor is only one complication in allowing Doe’s claims to go forward: “Plaintiff’s plan fails to address the judicial efficiency problems that could arise with piecemeal litigation” and potential burden on the remaining defendants -- and the plaintiff -- in seeking discovery from a debtor if the complaint were to survive motions to dismiss, it said.