FTC v. LeadClick Media, LLC

Case Updates

The Second Circuit affirmed the district court’s decision in part, reversed in part, and remanded the case. The opinion relied on reasoning from the U.S. Chamber’s amicus brief in holding that CoreLogic should not be held liable.

The U.S. Chamber filed a coalition brief in the Second Circuit arguing that CoreLogic could not be held liable for the obligations of a separate subsidiary due to the use of a shared services arrangement. The district court held CoreLogic liable as a relief defendant based on the use by a subsidiary, LeadClick, of a shared services function provided by CoreLogic. Accordingly, the district court ordered CoreLogic to disgorge to the plaintiffs a routine cash transfer from LeadClick that repaid CoreLogic for prior advances.

The Chamber’s brief argued that, if affirmed, the district court’s holding would substantially increase the risk associated with the operation of any standard shared services system and substantially reduce—or altogether eliminate—the benefits that shared services systems provide to consumers.

This brief was filed jointly with the Consumer Data Industry Organization, Consumer Mortgage Coalition, Independent Community Bankers of America, Mortgage Bankers Association, National Consumer Reporting Association, and Real Estate Services Providers Council.

Thomas M. Hefferon and William M. Jay of Goodwin Procter LLP served as co-counsel for the amici with the U.S. Chamber Litigation Center.