Due to the quirk of MDL Litigation, Judge Stein considered–and ultimately rejected–Raw Story Media’s motion to reconsider the dismissal of its DMCA CMI claim by Judge McMahon, who rendered the decision on lack of Article III standing right before all the cases against OpenAI were transferred to Judge Stein, sitting as an MDL court.
This created the unusual situation that Judge Stein took a contrary view of standing in New York Times v. Microsoft, but nonetheless ruled that his differing view did not create an extraordinary circumstance to undo Judge McMahon’s final decision.
As Judge Stein explained, “Judge McMahon’s dismissal of the complaint without leave to amend is a final order and, pursuant to Federal Rule of Civil Procedure 60(b)(6), plaintiffs must show “extraordinary circumstances” to warrant relief from that final order. Though the transfer of this case to this Court is a procedural peculiarity that highlights a tension between Judge McMahon’s decision and this Court’s ruling on the same legal issue in other cases, such circumstances are not so “extraordinary” as to warrant relief under Rule 60(b)(6). If plaintiffs disagree with Judge McMahon’s determination, they may simply take an appeal from that determination to the United
States Court of Appeals for the Second Circuit.”
Judge Stein further explained: “Judge McMahon’s final order dismissing the complaint for lack of Article III standing is admittedly inconsistent with this Court’s decision in New York Times Co. v.
Microsoft Corp., No. 23-cv-11195, 2025 WL 1009179 (S.D.N.Y. Apr. 4, 2025). But, even in
the context of this multidistrict litigation, that inconsistency alone does not justify this Court reconsidering her final order in light of the fact that plaintiffs can simply appeal that final order to the Second Circuit. Plaintiffs’ motion for reconsideration of Judge McMahon’s order dismissing the complaint in the Raw Story action and denying leave to amend is denied.”
Raw Story may feel like it got it raw deal.
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