Judge: Lynne M. Hobbs, Case: 24STCV07320, Date: 2024-06-12 Tentative Ruling

Case Number: 24STCV07320    Hearing Date: June 12, 2024    Dept: 61

ROSS LEVINSOHN, AN INDIVIDUAL vs THE ARENA GROUP HOLDINGS, INC., A DELAWARE CORPORATION, et al.

TENTATIVE    

Plaintiff Ross Levinsohn’s Motion to Seal Exhibits A–E of the Complaint is GRANTED.

Plaintiff to provide notice.

DISCUSSION    

The court may order that a record be filed under seal only if it expressly finds facts that establish:

(1) There exists an overriding interest that overcomes the right of public access to the record;

(2) The overriding interest supports sealing the record;

(3) A substantial probability exists that the overriding interest will be prejudiced if the record is not sealed;

(4) The proposed sealing is narrowly tailored; and

(5) No less restrictive means exist to achieve the overriding interest.

(California Rules of Court (“CRC”) Rule 2.550, subd. (d).)

A party moving to seal records must make a sufficient evidentiary showing to overcome the presumed right of public access to the documents. (see Huffy Corp. v. Superior Court (“Huffy”) (2003) 112 Cal.App.4th 97, 108.)

Plaintiff Ross Levinsohn (Plaintiff) moves to seal Exhibits A–E presently attached in redacted form to his Complaint. The exhibits are described in the Complaint as follows:

· Exhibit A: A PowerPoint presentation from an August 2023 compensation committee (Complaint ¶ 32);

· Exhibits B–D: emails in which members of the compensation committee agreed that Plaintiff would receive three years of severance pay, along with other compensation and benefits, in the event that he terminated his agreement for good cause (Complaint ¶ 114);

· Exhibit E: the compensation committee’s approval of an amendment to Plaintiff’s agreement dated November 2, 2023, in which Plaintiff would waive his right to resign for good cause based on a change in control, in exchange for an accelerated vesting of Plaintiff’s stock options. (Complaint ¶ 115.)

Plaintiff presents the declaration of its counsel Theresa M. Troupson, who states that this information contains sensitive commercial information belonging to Defendant The Arena Group Holdings, Inc. and personal financial information of the participants. (Troupson Decl. ¶ 9.)

Plaintiff has demonstrated an overriding interest in the sealing of the documents based on the potential competitive harm resulting to Defendant Arena Group from their disclosure, as well as the disclosure of the personal contact information contained therein. Commercial entities have an overriding interest in the privacy of their commercially sensitive information that could cause competitive harm if released to the public. (Universal City Studios, Inc. v. Superior Court (2003) 110 Cal.App.4th 1273, 1286.) That interest, as well as the privacy interest of the participants in the conversations, would be prejudiced if these exhibits were disclosed. The proposed order is narrowly tailored to the documents in question.

The motion is therefore GRANTED.