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TikTok Proposed Settlement
TikTok Proposed Settlement
1. PREAMBLE
1.1. This class action Settlement Agreement and Release (“Agreement”) is entered into by
and among the individuals and entities defined below as “Class Representatives” and
the individuals and entities defined below as “TikTok” where Class Representatives
and TikTok are collectively referred to herein as the “Parties.”
1.2. This Agreement is intended by the Parties to fully, finally, and forever resolve,
discharge, and settle the Released Claims (as the term is defined below), upon and
subject to the terms and conditions of this Agreement, and subject to preliminary and
final approval of the Court.
2. DEFINITIONS
2.1. “Agreement” or “Settlement” means this Settlement Agreement and Release,
including any exhibits.
2.2. “App” means the TikTok - Make Your Day video-sharing application (or its
Musical.ly predecessor) distributed in the U.S.
2.3. “Civil Actions” mean all of the civil actions that have been, will be, or could be
initiated relating to the allegations or subject matter at issue in any pleading filed in
any action that is included in or related to In Re: TikTok, Inc., Consumer Privacy
Litigation, MDL No. 2948.
2.4. “Class” means all persons who are members of the Nationwide Class and/or Illinois
Subclass. The parties understand and agree that issues involving collection of data
from minors is the subject of a class action settlement that has been preliminarily
approved in T.K. v. TikTok, Inc., No. 1:19-cv-07915 (N.D. Ill.). TikTok agrees to
waive any res judicata defense for purposes of this settlement only such that no
person who is a member of the settlement class in the T.K. action will be precluded
from participating in this Settlement.
2.5. “Class Counsel” means the attorneys who sign this Agreement as Class Counsel up
until such time as the Court appoints counsel to represent the Class in its preliminary
approval order; and following such appointment, “Class Counsel” shall mean the
counsel so appointed by the Court in its preliminary approval order.
2.6. “Class Member” means any person who qualifies under the definition of the Class,
excluding: (i) TikTok, its parent, subsidiaries, successors, affiliates, officers, and
directors; (ii) the judge(s) to whom the Civil Actions are assigned and any member of
the judges’ or judges’ immediate family; (iii) Persons who have settled with and
released TikTok from individual claims substantially similar to those alleged in the
Civil Actions; (iv) Persons who submit a valid and timely Request for Exclusion; and
(v) all Class Counsel and counsel of record in the Civil Actions.
2.7. “Class Representatives” mean: E.R., a minor, and E.R.’s Guardian, L.H.; D.M., a
minor, and D.M.’s Guardian, D.H.; A.S., a minor, and A.S.’s Guardian, A.S.; S.A., a
minor, and S.A.’s Guardian, Maritza A.; C.H., a minor, and C.H.’s Guardian, Marc
Halpin; G.R., a minor, and G.R.’s Guardian, Mayra De La Cruz; and Morgan
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Kukovec along with any other Class Representatives who may be appointed by the
Court, acting either individually or through Class Counsel.
2.8. “Court” means the United States District Court that has been assigned to preside over
In Re: TikTok, Inc., Consumer Privacy Litigation, MDL No. 2948 and any appellate
court that may review any orders entered by the District Court related to this
Agreement.
2.11. “Defendants’ Releasing Parties” means the current defendants in the Civil Actions,
as well as any and all of their current or former directors, officers, members,
administrators, agents, representatives, servants, employees, attorneys, parents,
subsidiaries, affiliates, divisions, branches, units, shareholders, successors,
predecessors, assigns, and all other individuals and entities acting on their behalf.
2.12. “Effective Date” means the first date after either (i) the time to appeal the Final Order
and Judgment has expired with no appeal having been filed or (ii) the Final Order and
Judgment is affirmed on appeal by a reviewing court and no longer reviewable by any
court.
2.13. “Execution” means the signing of this Agreement by all signatories hereto.
2.14. “Fee Award” means any attorneys’ fees, reimbursement of expenses, and other costs
awarded by the Court to Class Counsel.
2.15. “Final Approval Hearing” means the hearing before the Court where the Parties
request that the Court enter its Final Order and Judgment in accordance with this
Agreement.
2.16. “Final Order and Judgment” means the order entered by the Court, in a form that is
mutually agreeable to the Parties, approving this Agreement under Fed. R. Civ. P.
23(e) and making such other findings and determinations as the Court deems
necessary and appropriate to effectuate the terms of this Agreement, without
modifying any terms of this Agreement that either Party deems material.
2.17. “Illinois Subclass” means all persons who reside in the State of Illinois and used the
App in the State of Illinois to create videos prior to issuance of the Preliminary
Approval Order.
2.18. “Incentive Award” means any amount awarded by the Court to the Class
Representatives for serving as Class Representatives.
2.19. “Nationwide Class” means all persons who reside in the United States who used the
App prior to issuance of the Preliminary Approval Order.
2.20. “Notice of Proposed Class Action Settlement” means the notice described in the
Notice Plan as approved by the Court.
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2.21. “Notice Plan” means the planned method by which notice of this Agreement will be
given to the Class.
2.22. “Opt-Out and Objection Deadline” means the deadline for a Class Member to submit
a Request for Exclusion or objection as set forth in the Preliminary Approval Order
and which will be no more than sixty (60) days from the date upon which Notice of
the Proposed Class Action Settlement is commenced.
2.23. “Parties” means, collectively, the Class Representatives and TikTok, and “Party”
means any one of them.
2.24. “Person” means an individual or legal entity, including an association, or his, her, or
its respective estate, successors, or assigns.
2.25. “Plaintiffs’ Released Parties” means the Class Representatives, Class Counsel, and
counsel of record in the Civil Actions.
2.26. “Plaintiffs’ Releasing Parties” means Class Representatives and all Class Members,
as well as their present, former, and future heirs, executors, administrators, estates,
representatives, predecessors-in-interest, and assigns, and all other individuals and
entities acting on their behalf or otherwise asserting the interests of Class Members.
2.27. “Plan of Allocation” means the plan for allocating the Settlement Fund described in
this Agreement, or other such plan for allocating the Settlement Fund as may be
approved by the Court.
2.28. “Preliminary Approval Order” means the order issued by the Court provisionally (i)
granting preliminary approval of this Agreement; (ii) certifying the Class for
settlement purposes; (iii) appointing Class Representatives and Class Counsel; (iv)
approving the form and manner of the Notice Plan and appointing a Settlement
Administrator; (v) establishing deadlines for Requests for Exclusion and the filing of
objections to the proposed settlement contemplated by this Agreement; (vi) finding
that the Parties have complied with 28 U.S.C. § 1715; and (vii) scheduling the Final
Approval Hearing.
2.29. “QSF” means a court-approved Qualified Settlement Fund for federal tax purposes
pursuant to Treas. Reg. § 1.468B-1 in which will be deposited the Settlement Fund.
2.30. “Released Claims” means any and all claims, complaints, actions, proceedings, or
remedies of any kind, whether known or unknown (including, without limitation,
claims for attorneys’ fees and expenses and costs), arising from or related to the Civil
Actions or the collection and use of any user data, including biometric data, whether
in law or in equity, under contract, tort or any other subject area, or under any statute,
rule, regulation, order, or law, whether federal, state, or local, on any grounds
whatsoever, arising from the beginning of time through the Effective Date, that were,
could have been, or could be asserted by the Releasing Parties. Notwithstanding the
foregoing, the released claims shall not be deemed to release, remise, waive, acquit,
affect, or discharge any claims that are not releasable under the law or any claims or
defenses arising from enforcement of this agreement.
2.31. “Request for Exclusion” means the form that must be completed and returned in the
manner and within the time period specified in this Agreement for a Class Member to
request exclusion from the Class.
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2.33. “Settlement Fund” means the non-reversionary cash fund that shall be funded by
TikTok in the total amount of $92,000,000.00. The Settlement Fund is the total sum
that TikTok will pay in connection with this Agreement, deposited into a common
fund for payment of (i) distributions to Class Members, (ii) the Fee Award, (iii) the
Incentive Awards, and (iv) all settlement administration and notice costs.
2.34. “TikTok” means TikTok Inc., acting on behalf of Defendant’s Released Parties, and
its successors or assigns of the rights and obligations of TikTok under this
Agreement, including any entity that acquires TikTok’s obligations under this
agreement through merger or acquisition.
3.2. The Parties agree that, in consideration for the undertakings, promises, and payments
set forth in this Agreement and upon the entry by the Court of a Final Order and
Judgment approving and directing the implementation of the terms and conditions of
this Agreement, the Civil Actions will be settled and compromised upon the terms
and conditions set forth in this Agreement.
3.3. The Parties have agreed to enter into this Agreement as an appropriate compromise of
the claims in the Civil Actions to put to rest all controversy and to avoid the
uncertainty, risk, expense, and burdensome, protracted, and costly litigation that
would be involved in prosecuting and defending the Civil Actions.
3.4. TikTok has denied and continues to deny each allegation and all charges of
wrongdoing or liability of any kind whatsoever asserted or that could have been
asserted in the Civil Actions.
3.5. Plaintiffs’ Released Parties deny any wrongdoing, liabilities, claims, and causes of
action of any kind whatsoever that TikTok has asserted or could have been asserted
against them.
3.6. Subject to approval by the Court, TikTok conditionally agrees and consents to
jurisdiction, venue, and certification of the Class for settlement purposes only and
within the context of this Agreement only.
3.7. If this Agreement, for any reason, is not approved or is otherwise terminated, the
Parties expressly reserve all rights, claims, objections and defenses. TikTok reserves
the right to assert any and all objections and defenses to jurisdiction, venue,
certification of a litigation class, or other defenses; and neither this Agreement nor
any order or other action relating to this Agreement may be offered as evidence in
support of jurisdiction, venue, or class certification for a purpose other than
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4. SETTLEMENT FUND
4.1. Within 90 days after entry of the Preliminary Approval Order, TikTok shall cause to
be deposited the sum of Ninety-Two Million Dollars ($92,000,000) into an escrow
account established by the Settlement Administrator to create the Settlement Fund.
4.2. The Settlement Fund shall be a court-approved Qualified Settlement Fund (QSF) for
federal tax purposes pursuant to Treas. Reg. § 1.468B-1. TikTok shall be the
“transferor” to the QSF within the meaning of Section 1.468B-1(d)(1) of the Treasury
Regulations with respect to the Settlement Fund or any other amount Transferred to
the QSF pursuant to this Settlement Agreement. The Settlement Administrator shall
be the “administrator” of the QSF within the meaning of Section 1.468B-2(k)(3) of
the Treasury Regulations, responsible for causing the filing of all tax returns required
to be filed by or with respect to the QSF, paying from the QSF any taxes owed by or
with respect to the QSF, and complying with any applicable information reporting or
tax withholding requirements imposed by Section 1.468B-2(l)(2) of the Treasury
Regulations or any other applicable law on or with respect to the QSF. TikTok shall
provide to the Settlement Administrator any documentation required for the
Settlement Administrator to facilitate obtaining QFS status for the Settlement Fund
pursuant to Treas. Reg. §1.468B-l. All taxes on income or interest generated by the
Settlement Fund, if any, shall be paid out of the Settlement Fund.
4.3. Class Counsel shall select the Settlement Fund escrow account and the Settlement
Fund escrow bank. The Settlement Fund escrow bank shall invest the Settlement
Fund exclusively in an interest-bearing account or accounts where the principal will
not decrease and is fully insured by the United States Government or an agency
thereof, including certificates of deposit, a U.S. Treasury Fund or a bank account that
is either (a) fully insured by the Federal Deposit Insurance Corporation (“FDIC”) or
(b) secured by instruments backed by the full faith and credit of the United States
Government. The Settlement Fund escrow bank shall reinvest the proceeds of these
instruments as they mature in similar instruments at their then-current market rates.
All interest earned on the investment of the Settlement Fund shall be added to the
Settlement Fund, for distribution as set forth herein.
4.4. Other than the Settlement Fund, TikTok will have no financial obligations to Class
Representatives, Class Members, Class Counsel, any other attorney representing any
Class Member, or the Settlement Administrator with respect to the Defendants’
Released Claims. The Settlement Fund represents the total extent of TikTok’s
monetary obligations under this Agreement. In no event shall TikTok’s total
monetary obligations with respect to this Agreement exceed the amount stated above.
4.5. The Settlement Administrator will draw from the Settlement Fund to cover all
obligations with respect to costs related to this Agreement, including the expenses of
the Settlement Administrator, the Notice Plan, payments to Class Members, any
Incentive Awards, any Fee Award, and any other administrative fees and expenses in
connection with this Agreement; provided, however, that the Parties must approve
any payments to the Settlement Administrator prior to the Settlement Administrator
incurring such expenses. The Parties intend that, after the foregoing payments and
disbursements are made, there will be no funds remaining. Nonetheless, to the extent
any funds remain, no portion of the Settlement Fund will be returned to TikTok.
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4.6. If this Agreement is terminated, the Settlement Administrator will return all funds to
TikTok within ten (10) days of the termination date; provided, however, that the
Settlement Administrator need not return any funds already spent on notice and on
reasonable Settlement Administrator expenses before the termination date.
Notwithstanding any provision herein, in the event this Agreement is not approved by
any court, or terminated for any reason, or the Settlement set forth in this Agreement
is declared null and void, or in the event that the Effective Date does not occur,
Settlement Class Members, Class Representatives, and Class Counsel shall not in any
way be responsible or liable for any administration expenses, taxes with respect to the
Settlement Fund, or any expenses, including costs of notice and administration
associated with this Settlement or this Agreement, except that each Party shall bear its
own attorneys' fees and costs and Defendants' future payment obligations shall cease.
4.7. Defendants’ Released Parties, TikTok’s Counsel, Plaintiffs’ Released Parties and
Class Members shall have no liability, obligation or responsibility with respect to the
investment, disbursement, or other administration or oversight of the Settlement Fund
or QSF and shall have no liability, obligation or responsibility with respect to any
liability, obligation or responsibility of the Settlement Administrator, including but
not limited to, liabilities, obligations or responsibilities arising in connection with the
investment, disbursement or other administration of the Settlement Fund and QSF.
4.8. Once deposited by TikTok, the Settlement Fund shall be deemed and considered to be
in custodia legis of the Court, and shall remain subject to the jurisdiction of the Court
until such time as such funds shall be distributed pursuant to the Agreement and/or
further order(s) of the Court.
4.9. Notwithstanding any effort, or failure, of the Settlement Administrator or the Parties
to treat the Settlement Fund as a QSF, any tax liability, together with any interest or
penalties imposed thereon, incurred by TikTok or any Releasees resulting from
income earned on the Settlement Fund or the payments made from the Settlement
Fund (or the receipt of any payment under this paragraph) shall be reimbursed from
the Settlement Fund in the amount of such tax liability, interest or penalties promptly
upon and in no event later than five (5) days after TikTok’s or any Defendants’
Released Party’s written request to the Settlement Administrator.
4.10. For avoidance of doubt, neither TikTok nor any of Defendants’ Released Parties shall
have any liability, obligation, or responsibility whatsoever for tax obligations arising
from payments to any Class Member or based on the activities and income of the
QSF. In addition, neither TikTok nor any of Defendants’ Released Parties shall have
any liability, obligation, or responsibility whatsoever for tax obligations arising from
payments to Class Counsel. The QSF will be solely responsible for its tax obligations.
Each Class Member will be solely responsible for his or her tax obligations. Each
Class Counsel or other attorney or firm receiving a distribution from the Settlement
Fund will be solely responsible for his, her, or its tax obligations.
4.11. Class Counsel are not providing legal advice regarding the taxability of any amount
paid hereunder and nothing contained herein shall be interpreted as constituting legal
advice regarding the taxability of any amount paid hereunder, nor shall it be relied
upon as such. Any tax issues raised by this Agreement may be unique as to each Party
and Class Member, and each Party and Class Member is advised to obtain tax advice
from his or her own tax advisor with respect to any payments resulting from this
Agreement. Each Party and Class Member will be responsible for paying their own
respective share of all applicable state, local, and federal taxes on all amounts the
received or paid pursuant to this Agreement.
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4.12. TikTok shall have no liability whatsoever with respect to (i) any act, omission, or
determination by Class Counsel or the Settlement Administrator, or any of their
respective designees or agents, in connection with the administration of the settlement
or otherwise; (ii) the management, investment, or distribution of the Settlement Fund;
(iii) the Plan of Allocation; (iv) the determination, administration, or calculation of
claims to be paid to Class Members from the Settlement Fund; or (v) the payment or
withholding of taxes or related expenses, or any expenses or losses incurred in
connection therewith. The Plaintiffs’ Releasing Parties and Class Counsel release
TikTok from any and all liability and claims arising from or with respect to the
administration, investment or distribution of the Settlement Fund.
4.13. No person shall have any claim against Class Representatives, Class Counsel, counsel
of record for any party in the Civil Actions, the Settlement Administrator, or any
other person designated by Class Counsel, based on determinations or distributions
made substantially in accordance with this Agreement and the settlement contained
herein, the Plan of Allocation, administration of the Settlement Fund and the QSF, or
further order(s) of the Court.
5. PLAN OF ALLOCATION
5.1. Class Counsel shall prepare and submit a Plan of Allocation to the Court for approval
in connection with a motion for preliminary approval of the Settlement, which Plan of
Allocation shall propose the allocation of distributions from the Settlement Fund
among Class Members, Class Representatives, Class Counsel, and any other person to
receive a distribution from the Settlement Fund.
5.2. The Plan of Allocation shall include a provision for distribution of the Settlement
Fund according to the following preferential order:
5.2.1. Payment of all expenses incurred by the Settlement Administrator for the
Notice Plan and settlement administration;
5.2.4. Payment of the remaining unallocated portion of the Settlement Fund to Class
Members in accordance with the Final Approval Order or any subsequent
order of the Court within 14 days of the Effective Date; and
5.2.5. Payment of any residue of the Settlement Fund as set forth in this Agreement,
subject to a reduction for any associated administrative costs.
5.3.2. The Plan of Allocation will divide the portion of the Settlement Fund to be
distributed to Class Members into a total number of pro rata shares equal to
the sum of the number of Nationwide Class Members who submit a valid
claim and a multiple between three (3) and ten (10) of the number of Illinois
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5.3.4. The method for submitting a claim and for receiving a distribution will be
described and provided in the Notice Plan after consultation with the
Settlement Administrator. Class Members will be required to prove eligibility
by means reasonably resistant to fraud to be mutually agreed upon by the
parties after consultation with the Settlement Administrator.
5.3.6. Class Members with valid claims who fail to provide sufficient or correct
information or fail to submit a valid claim within the time period identified in
the Notice Plan waive any right to any payment from the Settlement Fund.
5.3.7. The Settlement Administrator shall review all claims to determine their
validity. The Settlement Administrator may reject any claim that does not
comply in any material respect with the instructions in the Notice Plan; is not
submitted by a Class Member; is a duplicate of another claim; is reasonably
suspected to be fraudulent; or is submitted after the deadline for claims. The
decision of the Settlement Administrator shall be final as to the determination
of a claim’s validity.
5.3.9. Claims of Class Members that are deemed valid will be paid out to Class
Members by the Settlement Administrator beginning 14 days after the
Effective Date, or as soon thereafter as is reasonably practical.
5.4. Residue
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5.4.1. Within one year plus 30 days after the date the Settlement Administrator
distributes the first Settlement Fund Payments, any funds remaining in the
Settlement Fund shall be redistributed on a pro rata basis to Settlement Class
Members who previously received payment, to the extent feasible and
practical in light of the costs of administering such subsequent payments,
unless the amounts involved are too small to make individual distributions
economically viable or other specific reasons exist that would make such
further distributions impossible or unfair.
5.4.2. If the Settlement Administrator determines that any residue of the Settlement
Fund cannot be distributed on a pro rata basis to Class Members who
submitted a claim, the Court may determine an appropriate alternative plan for
distribution of the residue.
5.4.3. All costs associated with the disposition of residual funds – whether through
additional distributions to Settlement Class Members and/or through an
alternative plan approved by the Court – shall be borne solely by the
Settlement Fund.
6. INJUNCTIVE RELIEF
6.1. TikTok will not do the following unless disclosed expressly in its Privacy Policy and
in compliance with all applicable laws (such as where applicable law requires express
written consent):
6.1.1. Use the App to collect or store a user’s biometric information or identifiers (as
defined by applicable law);
6.1.4. Use the App to transmit U.S. user data outside of the U.S.;
6.3. TikTok will require newly designed training on compliance with data privacy laws
and company procedures for all relevant incoming employees and contractors, and
annual training thereafter.
6.4. TikTok will provide a written verification under oath of compliance with the
foregoing within 90 days of the Effective Date.
7. CONFIRMATORY DISCOVERY
7.1. Warranty. TikTok warrants that it has not used the App to collect biometric
identifiers or biometric information as defined by the Illinois Biometric Information
Privacy Act and TikTok will provide the following confirmatory discovery to confirm
this warranty, subject to the terms of a mutually-agreeable confidentiality agreement.
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7.2. Source Code Inspection. As soon as possible and within 30 days after execution of
the Settlement Agreement, TikTok will make the source code of the App available for
inspection for a period of 30 days to a third-party expert retained by Class Counsel
who has signed the required confidentiality agreement. Class Counsel and TikTok
will meet and confer should the expert reasonably require additional time to review
the source code.
7.5. Document Requests. TikTok will respond to document requests previously served by
Plaintiff E.R. within 14 days after execution of the Settlement Agreement.
7.6. Depositions. TikTok will make available Fed. R. Civ. P. 30(b)(6) witness(es) for
depositions by written question to verify the warranty that TikTok has not collected
biometric identifiers or biometric information from users of the App.
7.7. Confidentiality. The responses to all confirmatory discovery may be designated for
confidentiality protection under the Protective Order where applicable.
8. SUBMISSION FOR PRELIMINARY APPROVAL
8.1. As soon as the required confirmatory discovery has been completed, Class Counsel
will submit to the Court a motion for an order conditionally certifying the Class,
granting preliminary approval of this Agreement, approving Class Notice and the
Notice Plan, setting a briefing schedule for a final approval hearing and a briefing
schedule for a motion for an award of Attorneys’ Fees and Costs and a Class
Representative Incentive Award, and otherwise staying the Civil Actions, in a form
mutually agreed to by the Parties and in compliance with all applicable laws, rules,
and orders and local guidelines of the Court.
8.2. Class Counsel and TikTok will take any acts reasonably necessary to carry out this
Agreement’s expressed intent.
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9.2. The notice plan shall include the best notice practicable as recommended by a notice
expert. TikTok shall provide information in its possession or control concerning
contact information for the Class, to be used by the Settlement Administrator only.
9.3. The Notice Plan shall include procedures for the handling, protection, security and
use of Class Representatives and Class Members’ personal data and information.
9.4. Class Representatives will select the Settlement Administrator. Class Representatives
will solicit multiple bids and will provide them to TikTok. TikTok will provide
feedback and recommendations concerning the bids.
9.5. All costs of settlement administration and the Notice Plan will come from the
Settlement Fund.
9.6. The Settlement Administrator shall use means to be agreed upon by the parties to
detect and mitigate against fraudulent claims.
9.7. Within 10 days after the filing of this Agreement with the Court, the Settlement
Administrator shall notify the appropriate state and federal officials of this Agreement
pursuant to the Class Action Fairness Act of 2005, 28 U.S.C. § 1715. Within fifteen
(15) days after the Notice Date, the Settlement Administrator shall provide
declarations to the Court, with a copy to Class Counsel and Defense Counsel,
attesting to the measures undertaken to provide notice as directed by CAFA.
10.2. The Parties shall have the right to challenge the timeliness and validity of any
Request for Exclusion. The Court shall determine whether any contested exclusion
request is valid.
10.3. Within 10 days after the Opt-Out and Objection Deadline, the Settlement
Administrator will provide the Parties a list of all Persons who opted out by validly
requesting exclusion.
11. OBJECTIONS
11.1. Only Class Members shall be eligible to make an objection to this Agreement.
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11.2. Any Class Member who does not submit a valid and timely Request for Exclusion
may object to the fairness, reasonableness, or adequacy of this Agreement up until the
Opt-Out and Objection Deadline. Class Members may not seek to exclude themselves
from the Class and submit an objection to this Agreement. Any Class Member who
both objects to this Agreement and opts-out will be deemed to have opted-out and the
objection shall be deemed null and void.
11.3. Any Class Member who wishes to object to any aspect of this Agreement must send
to the Settlement Administrator, Class Counsel, and TikTok’s counsel, and file with
the Court, a written statement of the objection(s) which must include: (i) the name of
the Action and a description of the objection(s), including any evidence and
applicable legal authority and any supporting evidence the objector wishes to
introduce; (ii) the objector’s full name, address, email address, telephone number,
mobile telephone number(s) for the Class Member’s device(s) used to access the App,
and any and all TikTok user names used; (iii) whether the objection applies only to
the objector, a specific subset of the Settlement Class, or the entire Settlement Class;
(iv) the identity of all counsel who represent the objector, including former or current
counsel who may be entitled to compensation for any reason related to the objection,
along with a statement of the number of times in which that counsel has objected to a
class action settlement within five years preceding the submission of the objection,
the caption of the case for each prior objection, and a copy of any relevant orders
addressing the objection; (v) all agreements that relate to the objection or the process
of objecting, between the objector or objector’s counsel and any other person or
entity; (vi) the objector (and the objector’s attorney’s) signature on the written
objection; and (vii) a declaration under penalty of perjury that the information
provided by the objector and objector’s counsel is true and correct.
11.4. Objectors who fail to timely file and serve written objections shall be deemed to have
waived any objections and shall be foreclosed from making any objection (whether
by appeal or otherwise) to this Settlement.
11.5. Class Members may raise an objection either on their own or through an attorney
hired at their own expense. If a Class Member hires an attorney other than Class
Counsel to represent him or her, the attorney must (i) file a notice of appearance with
the Court no later than the Opt-Out and Objection Deadline, and (ii) deliver a copy of
the notice of appearance on Class Counsel and TikTok’s counsel, no later than the
Opt-Out and Objection Deadline. Class Members, or their attorneys, intending to
make an appearance at any hearing relating to this Agreement, including the Final
Approval Hearing, must deliver to Class Counsel and TikTok’s counsel, and file with
the Court, no later than 21 days before the date of the hearing at which they plan to
appear, or as the Court otherwise may direct, a notice of their intention to appear at
that hearing.
11.6. Any Class Member who fails to comply with the provisions of the preceding
subsections shall waive and forfeit any and all rights he or she may have to appear
separately and/or object, and shall be bound by all the terms of this Agreement.
11.7. Any issue not raised with sufficient particularity to give fair notice of the basis for the
objection by the Opt-Out and Objection Deadline is waived. Class Members who file
an objection may not file any other briefing or similar documents relating to their
objection or settlement approval without first obtaining leave of court through a
noticed motion.
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11.8. Any Class Member who files an appeal of the Final Order and Judgment shall post a
bond in an amount to be determined by the Court.
12.2. Upon entry of the Final Order and Judgment, the Plaintiffs’ Releasing Parties and
Defendants’ Releasing Parties will be deemed to have, and will have, expressly
waived and relinquished, to the fullest extent permitted by law, the provisions, rights
and benefits of Section 1542 of the California Civil Code, which provides as follows:
12.3. Upon entry of the Final Order and Judgment, the Plaintiffs’ Releasing Parties and
Defendants’ Releasing Parties will be deemed to have, and will have, waived any and
all provisions, rights and benefits conferred by any law of any state or territory of the
United States, or principle of common law, or the law of any jurisdiction outside of
the United States, which is similar, comparable or equivalent to Section 1542 of the
California Civil Code, except those Claims that are not releasable under the law or
any claims or defenses arising from enforcement of this Agreement. Plaintiffs’
Releasing Parties acknowledge that they may discover facts in addition to or different
from those that they now know or believe to be true with respect to the subject matter
of this release, but that it is their intention to finally and forever settle and release the
Released Claims, notwithstanding any unknown claims they may have.
12.4. This Agreement shall be the sole and exclusive remedy for any and all Released
Claims. Upon entry of the Final Order and Judgment, each Plaintiffs’ Releasing Party
shall be barred from initiating, asserting, or prosecuting any Released Claims against
the Defendants’ Released Parties. Defendants’ Releasing Parties shall be barred from
initiating, asserting, or prosecuting any liabilities, claims or causes as set forth in
¶12.5.
12.5. Upon entry of the Final Order and Judgment, Defendants’ Releasing Parties shall be
deemed to waive, release and forever discharge Plaintiffs’ Released Parties from and
for any and all liabilities, claims, cross-claims, causes of action, rights, actions, suits,
debts, liens, contracts, agreements, damages, costs, attorneys’ fees, losses, expenses,
obligations, or demands of any kind whatsoever, whether known or unknown,
existing or potential, or suspected or unsuspected, whether raised by claim,
counterclaim, setoff, or otherwise, including any known or unknown claims, which
they have or may claim now or in the future to have, relating to the institution,
prosecution, or settlement of the Civil Action, except for claims relating to the
enforcement of the Settlement or this Agreement, and for the submission of false or
fraudulent claims for Settlement benefits.
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12.6. Upon entry of Final Order and Judgment, the Civil Actions shall be dismissed with
prejudice.
13.2. Class Counsel intend to file a motion for Court approval of Incentive Awards to Class
Representatives to be paid from the Settlement Fund, up to $2,500.00 each. Should
the Court award less than this amount, the difference in the amount sought and the
amount ultimately awarded shall remain in the Settlement Fund.
13.3. This Agreement contains no rights and restrictions regarding Class Counsel’s
application for a Fee Award beyond the right to apply to the Court for a reasonable
Fee Award.
13.4. It is not a condition of this Agreement that any particular amount of attorneys’ fees,
costs or expenses or incentive awards be approved by the Court, or that such fees,
costs, expenses or awards be approved at all. Any order or proceeding relating to the
amount of any award of attorneys’ fees, costs, or expenses or inventive awards, or
any appeal from any order relating thereto, or reversal or modification thereof, shall
not operate to modify, terminate or cancel this Agreement, or affect or delay the
finality of the Final Order and Judgment, except that any modification, order or
judgment cannot result in TikTok’s overall obligation exceeding the agreed-upon
amount of the Settlement Fund.
13.5. Except as otherwise provided in this section, each Party will bear its own costs,
including attorneys’ fees, incurred in connection with the Civil Actions.
14.2. If the Final Order and Judgment is vacated or reversed by a reviewing court in whole
or in part in any manner that prohibits subsequent approval of the Agreement without
material modification, this Agreement will be deemed terminated (except with respect
to rulings on any Fee Award), unless all Parties who are adversely affected thereby, in
their sole discretion within thirty (30) days of receipt of such ruling, provide written
notice to all other Parties of their intent to proceed with this Agreement as modified.
14.3. If this Agreement is deemed terminated by refusal of the Court to approve or affirm
approval of the Agreement, it will have no force or effect whatsoever, shall be null
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and void, and will not be admissible as evidence for any purpose in any pending or
future litigation in any jurisdiction.
14.4. The performance of this Agreement is expressly contingent upon the terms and
execution thereof being compliant with applicable law and government orders.
Should any party’s performance be in conflict with applicable law or government
orders, the Parties will negotiate in good faith to modify the Agreement to avoid the
conflict prior to termination of the Settlement.
15. CONFIDENTIALITY
15.1. Other than as necessary to comply with legal processes and federal and state tax and
securities laws or with the terms of this Agreement or unless otherwise agreed and/or
pursuant to Court Order, the Parties will maintain the confidentiality of all terms of
the Settlement until the Settlement is presented to the Court for preliminary approval.
15.2. Unless required by Court Order, the Parties and their counsel will not disclose the
terms of the Agreement to any other parties or counsel in the Civil Actions without
written agreement from all Parties hereto until the Settlement is presented to the
Court for preliminary approval.
15.3. Unless and until all Parties execute this Agreement and present it to the Court in a
motion seeking the Preliminary Approval Order, unless required by Court Order, or
unless otherwise agreed, the Parties agree that all terms of this Agreement will remain
confidential and subject to Federal Rule of Evidence 408.
16.3. The prevailing party in any action or proceeding in which is asserted a claim or cause
of action for breach of this Agreement will be entitled to recover all reasonable costs
and attorneys’ fees incurred in connection with the action or proceeding.
16.4. The release in this Agreement may be enforced by any of the Defendants’ Released
Parties.
17. MISCELLANEOUS
17.1. This Agreement, including all attached exhibits, shall constitute the entire agreement
among the Parties (and covering the Parties and the Class) with regard to the subject
matter of this Agreement and shall supersede any previous agreements and
understandings between the Parties.
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17.2. This Agreement may not be changed, modified or amended except in writing signed
by Class Counsel and TikTok’s counsel, subject to Court approval if required.
17.3. Each Party represents and warrants that it enters into this Agreement of that Party’s
own free will. Each Party is relying solely on its own judgment and knowledge and is
not relying on any representation made by any other Party or any other Party’s agents
or attorneys concerning the subject matter, basis, or effect of this Agreement.
17.4. This Agreement has been negotiated at arm’s length by Class Counsel and TikTok’s
counsel with the assistance of Hon. Layn Phillips (Ret.). In the event of any dispute
arising out of this Agreement, or in any proceeding to enforce any of the terms of this
Agreement, no Party shall be deemed to be the drafter of this Agreement or of any
particular provision or provisions, and no part of this Agreement shall be construed
against any Party on the basis of that Party’s identity as the drafter of any part of this
Agreement.
17.5. The Parties agree to cooperate in good faith fully and to take all additional action that
may be necessary or appropriate to give full force and effect to the basic terms and
intent of this Agreement.
17.6. This Agreement shall be binding upon and inure to the benefit of all the Parties and
Class Members, and their respective representatives, heirs, successors, and assigns.
17.7. The headings of the sections of this Agreement are included for convenience only and
shall not be deemed to constitute part of this Agreement or to affect its construction.
17.8. The Parties have cooperated in the drafting and preparation of this Agreement. This
Agreement will not be construed against any party on the basis that the party was the
drafter or participated in the drafting.
17.9. Prior to pursuing relief or submitting any dispute relating to this Agreement or the
Civil Actions to the Court, the Parties and Class Counsel agree to mediate the dispute
before Hon. Layn Phillips (Ret.) in Palo Alto, California.
17.10. Any notice, instruction, court filing, or other document to be given by any Party to
any other Party shall be in writing and delivered personally or sent by registered or
certified mail, postage prepaid, or overnight delivery service to the respective
representatives identified below or to other recipients as the Court may specify. As of
the date of this Agreement, these respective representatives are as follows:
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Jonathan M. Jagher
FREED KANNER LONDON &
MILLEN LLC
923 Fayette Street
Conshohocken, PA 19428
[email protected]
17.11. The Parties each represent and warrant that they have not sold, assigned, transferred,
conveyed, subrogated, or otherwise disposed of any claim or demand covered by this
Agreement. If a Class Member has sold, assigned, transferred, conveyed, subrogated
or otherwise disposed of any claim or demand, the Person that acquired such claim or
demand is bound by the terms of this Agreement to the same extent as the Class
Member would have been but for the sale, assignment, transfer, conveyance, or other
disposition.
17.12. The respective signatories to this Agreement each represent that they are fully
authorized to enter into this Agreement on behalf of the respective Parties.
17.13. The waiver by one Party of any breach of this Agreement by any other Party will not
be deemed as a waiver of any other prior or subsequent breaches of this Agreement.
17.14. Any Exhibits to this Agreement are material and integral parts thereof and are fully
incorporated herein by this reference.
17.15. This Agreement may be executed in one or more counterparts, and may be executed
by facsimile or electronic signature. All executed counterparts and each of them will
be deemed to be one and the same instrument.
17.16. This Agreement will be binding upon, and inure to the benefit of, the successors and
assigns of the Parties hereto and the Defendants’ Released Parties and Plaintiffs’
Released Parties.
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___________________________________________ Date:______________
Katrina Carroll
CARLSON LYNCH, LLP
On Behalf of E.R., a minor, and E.R.’s Guardian, L.H.
___________________________________________ Date:______________
Jonathan M. Jagher
FREED KANNER LONDON & MILLEN LLC
On Behalf of D.M., a minor, and D.M.’s Guardian, D.H.
___________________________________________ Date:______________
Robert M. Foote
FOOTE, MIELKE, CHAVEZ & O’NEIL, LLC
On Behalf of Morgan Kukovec
___________________________________________ Date:______________
Tiffany M. Yiatras
CONSUMER PROTECTION LEGAL, LLC
On Behalf of A.S., a minor, and A.S.’s Guardian, A.S.
___________________________________________ Date:______________
Tina Wolfson
AHDOOT & WOLFSON, PC.
On Behalf of S.A., a minor, and S.A.’s Guardian, Maritza A.
___________________________________________ Date:______________
Michael Gervais
SUSMAN GODFREY L.L.P.
On Behalf of C.H., a minor, and C.H.’s Guardian, Marc Halpin
___________________________________________ Date:______________
Joseph P. Guglielmo
SCOTT+SCOTT ATTORNEYS AT LAW LLP
On Behalf of G.R., a minor, and G.R.’s Guardian, Mayra De La Cruz
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1. PURPOSE
1.1. This Addendum No. 1 to Settlement Agreement and Release is intended only to
clarify and not to modify the class action Settlement Agreement and Release
(“Agreement”) executed September 4, 2020 by certain parties in the civil action
captioned In Re: TikTok, Inc., Consumer Privacy Litigation, MDL No. 2948. The
clarifications herein represent the intent of the signatories to the Agreement at the
time of execution of the Agreement.
2. CLARIFICATION OF DEFINITIONS
2.1. “App” means the TikTok video-sharing application (or its Musical.ly predecessor)
distributed in the U.S., including its device-side and server-side operations.
2.2. “Class Counsel” means the plaintiffs’ attorneys who have signed the Agreement
and/or this Addendum as Class Counsel up until such time as the Court appoints
counsel to represent the Class in its preliminary approval of the Settlement; and
following such appointment, “Class Counsel” shall mean the counsel so appointed by
the Court.
2.3. “Class Representatives” means those individuals who are proposed as Class
Representatives by Class Counsel in their motion for preliminary approval of the
Settlement.
2.4. “Pre-Upload(ed) User-Generated Content” means videos created with the App that
are uploaded to TikTok’s servers prior to the user selecting whether to “save” or
“post” the content and where no such selection was subsequently made by the user.
2.5. “TikTok” means TikTok Inc., acting on behalf of Defendants’ Released Parties, and
its successors or assigns of the rights and obligations of TikTok under this
Agreement, including any entity that acquires TikTok’s obligations under this
Agreement through merger or acquisition. With respect to the Injunctive Relief in
Section 6 of the Agreement, “TikTok” means any of Defendants’ Released Parties to
the extent they are engaged in the operation of the App or involved in receiving or
accessing user data obtained through the App.
3.1. The method for determining the allocation of benefits to Illinois Subclass Members
described in section 5.3.2 of the Agreement is entirely within the discretion of Class
Counsel and may, at Class Counsel’s discretion, be determined with or without
mediation between counsel for Class Members so long as the interests of the
Nationwide Class and the Illinois Subclass are both adequately represented in the
determination.
4.1. As part of the conduct listed in Section 6.1 of the Agreement, TikTok will not do the
following unless disclosed in its Privacy Policy and in compliance with all applicable
laws (such as where applicable law requires express written consent):
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Share user data collected through the App with third parties without disclosing
in its Privacy Policy the categories of third parties with whom user data is
shared.
4.2. The Parties jointly reviewed multiple categories of user data potentially in TikTok’s
possession that should be deleted from TikTok’s servers consistent with the intent of
the injunctive relief in Section 6 of the Agreement. Following confirmation from
TikTok as to what categories existed and should be deleted, TikTok has agreed to
delete any Pre-Uploaded User-Generated Content, as identified in Section 6.2 of the
Agreement.
4.3. Pursuant to Section 6.3 of the Agreement, TikTok will, at its own expense, hire a
third party to review the data privacy law compliance training for a period of three
years and to provide a written verification of this review along with the verification
required by Section 6.4 of the Agreement to Class Counsel.
5.1. The warranty in Section 7.1 of the Agreement is not intended to cover features and
operations of the App that are not used to identify an individual, such as image
landmarking operations used for special effects and demographic classification,
speech-to-text operations used to generate text of words spoken in a video, and
similar non-identifying operations. The warranty is only meant to cover the use of the
App to collect biometric data to identify individual App users—whether that
biometric data is collected directly upon being uploaded to TikTok’s servers through
the App or whether that biometric data is later collected after being extracted from
other user content that has been uploaded through the App to TikTok’s servers.
APPROVED BY:
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For TikTok: