A Utah federal judge has refused to dismiss a proposed class action accusing Sundance Holdings Group LLC of unlawfully sharing its customers’ private information with third parties. The decision, issued Monday by U.S. District Judge Robert J. Shelby, found that the federal rules governing class actions supersede Utah state law, which prohibits such claims.
The case, brought under the Utah Notice of Intent to Sell Nonpublic Personal Information Act (NISNPIA), centers on allegations that Sundance disclosed customers’ private information from online purchases to advertisers, political organizations, and other third parties without proper notice or consent.
Federal Rule Preempts State Class Action Ban
Sundance argued that the lawsuit should be dismissed because the Utah statute prohibits class actions, which it claimed deprived the court of jurisdiction. Judge Shelby rejected this argument, finding that Rule 23 of the Federal Rules of Civil Procedure governs the case and overrides the state law.
