Meta Platforms, Inc. v. Leascend Technology Co., Ltd.
CourtCourt of Appeals for the Ninth Circuit
Date FiledNovember 9, 2026
Docket25-1773
StatusUnpublished
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Full Opinion
UNITED STATES COURT OF APPEALS FILED
FOR THE NINTH CIRCUIT NOV 9 2026
MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS
META PLATFORMS, INC., a Delaware No. 25-1773
corporation; FKA Facebook,
D.C. No.
Inc. and INSTAGRAM, LLC, a Delaware 3:19-cv-07071-SI
limited liability company, Northern District of California,
San Francisco
Plaintiffs - Appellees,
ORDER AND AMENDED
v. MEMORANDUM
ONLINENIC, INC. and DOMAIN ID
SHIELD SERVICE CO., LTD,
Defendants,
and
LEASCEND TECHNOLOGY CO., LTD.,
FKA: Xiamen 35.com Internet Technology
Co., Ltd.,
Defendant - Appellant.
Before: LEE, MENDOZA, and DE ALBA, Circuit Judges.
Petitioner’s petition for panel rehearing (Dkt. No. 54) is granted in part. The
memorandum disposition filed on September 4, 2026 (Dkt No. 53) is amended by
the Amended Memorandum Disposition filed concurrently with this order. The
petition for panel rehearing is otherwise DENIED.
The panel has voted to deny the petition for rehearing en banc (Dkt. No. 54).
The full court has been advised of the petition for rehearing en banc, and no judge
has requested a vote on whether to rehear the matter en banc. Fed. R. App. P. 40.
The petition rehearing en banc is DENIED. No further petitions for rehearing or
rehearing en banc will be allowed.
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NOT FOR PUBLICATION FILED
UNITED STATES COURT OF APPEALS NOV 9 2026
MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS
FOR THE NINTH CIRCUIT
META PLATFORMS, INC., a Delaware No. 25-1773
corporation; FKA Facebook, D.C. No.
Inc.; INSTAGRAM, LLC, a Delaware 3:19-cv-07071-SI
limited liability company,
AMENDED MEMORANDUM*
Plaintiffs - Appellees,
v.
LEASCEND TECHNOLOGY CO., LTD.,
FKA: Xiamen 35.com Internet Technology
Co., Ltd.,
Defendant - Appellant.
and
ONLINENIC, INC., DOMAIN ID SHIELD
SERVICE CO., LTD,
Defendants
Appeal from the United States District Court
for the Northern District of California
Susan Illston, District Judge, Presiding
*
This disposition is not appropriate for publication and is not precedent
except as provided by Ninth Circuit Rule 36-3.
Submitted August 13, 2026**
San Francisco, California
Before: LEE, MENDOZA JR., and DE ALBA, Circuit Judges
Leascend Technology Co., Ltd. appeals the district court’s determination that
it is the alter ego of OnlineNIC, Inc. and that the court thus has personal jurisdiction
over it. Meta Platforms, Inc. sued OnlineNIC for cybersquatting and ultimately
obtained a default judgment against it. Leascend also challenges the district court’s
terminating sanctions, asset freeze order, and cost and fees award. We have
jurisdiction under 28 U.S.C. § 1291 and affirm.
1. Alter ego finding. We review the district court’s determination that
Leascend is the alter ego of OnlineNIC de novo to determine whether a genuine issue
of material fact exists. UA Loc. 343 v. Nor-Cal Plumbing, Inc., 48 F.3d 1465, 1471
(9th Cir. 1994). Under California law, alter ego liability exists when organizations
act as “a single business enterprise.” Toho-Towa Co., Ltd. v. Morgan Creek Prods.,
Inc., 159 Cal. Rptr. 3d 469, 479–80 (Ct. App. 2013). The analysis is based “on
equitable principles” and results “vary according to the circumstances of each case.”
Id. at 480 (quoting McLaughlin v. L. Bloom Sons Co., 24 Cal. Rptr. 311, 314 (Ct.
App. 1962)).
**
The panel unanimously concludes this case is suitable for decision
without oral argument. See Fed. R. App. P. 34(a)(2).
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Here, the district court did not err in determining that no genuine factual
dispute exists that Leascend was the alter ego of OnlineNIC because the businesses
(i) shared ownership and management structures, see Zoran Corp. v. Chen, 110 Cal.
Rptr. 3d 597, 606–07 (Ct. App. 2010), (ii) shared almost all of OnlineNIC’s
employees, Toho-Towa Co., 159 Cal. Rptr. 3d at 480–81, (iii) comingled assets, id.,
and (iv) Leascend vigorously defended OnlineNIC’s misbehavior during discovery
proceedings, aiding in the “concealment . . . of the identity of the responsible
ownership, management and financial interest” of the business, Zoran Corp., 110
Cal. Rptr. 3d at 607. Leascend offered only conclusory statements and did not point
to any specific and material facts creating a triable dispute.
2. Jurisdiction over Leascend. Given our affirmance of the district court’s alter
ego finding, we also find that the district court properly exercised personal
jurisdiction over Leascend. We review the district court’s personal jurisdiction
determination de novo. Pebble Beach Co. v. Caddy, 453 F.3d 1151, 1154 (9th Cir.
2006). If a company is subject to a court’s personal jurisdiction, the court may
exercise personal jurisdiction over that company’s alter ego business. See Ranza v.
Nike, Inc., 793 F.3d 1059, 1065 (9th Cir. 2015) (holding that a court “may attribute
a parent company’s contacts with the forum state to its foreign subsidiary for the
purpose of exercising general personal jurisdiction over the subsidiary . . . upon a
showing that the subsidiary is an alter ego of its parent”). Here, exercise of specific
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personal jurisdiction over Leascend was proper as it purposefully directed its
activities to the Northern District of California via its alter ego, OnlineNIC. See
Asahi Metal Indus. Co. v. Superior Ct. of Cal., 480 U.S. 102, 112 (1987). While the
district court determined that it possessed general personal jurisdiction over both
Leascend and OnlineNIC, we need not address general personal jurisdiction because
the exercise of specific personal jurisdiction was proper. See Goodyear Dunlop
Tires Operations, S.A. v. Brown, 564 U.S. 915, 923–24 (2011).
3. Terminating sanctions. The district court’s terminating sanctions and entry
of default against Leascend were not contrary to due process. We review due process
challenges to sanctions de novo. S.E.C. v. McCarthy, 322 F.3d 650, 654 (9th Cir.
2003). The district court relied on factors outlined in Eitel v. McCool for reviewing
default judgment, and the parties on appeal presumed that Eitel applies but disputed
whether the factors were met.1 782 F.2d 1470, 1471–72 (9th Cir. 1986) (considering
1
To the extent that Leascend is challenging the terminating sanctions under Rule
37 that served as the basis for default judgment, we consider similar factors: “(1) the
public’s interest in expeditious resolution of litigation; (2) the court’s need to
manage its dockets; (3) the risk of prejudice to the party seeking sanctions; (4) the
public policy favoring disposition of cases on their merits; and (5) the availability of
less drastic sanctions.” Connecticut Gen. Life Ins. Co. v. New Images of Beverly
Hills, 482 F.3d 1091, 1096–97 (9th Cir. 2007). The outcome would remain the same
even under these factors. The district court appointed a Special Master to look into
Leascend’s discovery. The Special Master found that Leascend and OnlineNIC
“‘failed to preserve potentially relevant ESI for this matter pre-litigation, post
complaint filing, during discovery, and even after the appointment of Special
Master’ and that the defendants’ ‘behavior was intentional.’” There is clear evidence
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“the possibility of prejudice to the plaintiff,” “the merits of plaintiff’s substantive
claim,” and “the sufficiency of the complaint”). The district court did not err, given
its determination that Leascend and OnlineNIC failed to preserve, concealed, and
actively spoliated evidence, which “significantly hampered” Meta’s “ability to
prosecute this case on the merits.”
4. Freeze of assets and award of fees. We review the district court’s injunction
order freezing Leascend’s assets and awarding fees for abuse of discretion. Johnson
v. Couturier, 572 F.3d 1067, 1084–86 (9th Cir. 2009); Resurrection Bay
Conservation All. v. City of Seward, 640 F.3d 1087, 1094 (9th Cir. 2011). The
district court considered bank statements, the pending sale of part of Leascend’s
Chinese business, and evaluated Leascend and OnlineNIC’s history of obfuscation
and failure to comply with court orders. The court found these factors weighed in
favor of establishing an asset freeze and escrow order. Further, the fee award was
proper as Meta’s expenses were largely attributable to Leascend and OnlineNIC’s
litigation misbehavior. The facts here rise to the level of an “exceptional case[]” in
which “reasonable attorney fees” can be awarded to the prevailing party under the
Lanham Act. 15 U.S.C. § 1117(a).
AFFIRMED.
of “willfulness, bad faith, and fault,” so terminating sanctions were appropriate. Id.
at 1096.
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