Xfinity Mobile Seeks Expedited Discovery to ID Stolen-Phone Actors

Comcast’s Xfinity Mobile (XM) seeks expedited discovery in its complaint to thwart illegal trafficking in stolen phones (see 2211170061), said its motion Tuesday (docket 2:22-cv-01950]) in U.S. District Court for Arizona. XM especially seeks permission to serve nonparty subpoenas because certain nonparties “have significant evidence relevant to this case that they are otherwise under no duty to preserve and may destroy pursuant to their corporate document retention policies,” said the motion.

Defendants SellLocked.com, its affiliate Guru Holdings, and their owner, Jakob Zahara, together with their co-conspirators, are handset traffickers who exploit XM’s financial incentives to acquire phones by using various unlawful methods to circumvent the policies and procedures put in place to protect XM and its legitimate customers, said XM’s Nov. 16 complaint. They then resell the unlawfully obtained phones for substantial profit, it said.

XM uncovered “compelling evidence” showing the named defendants are “active participants” in the trafficking scheme, said the motion. Expedited discovery will enable XM to learn, as quickly as possible, “the full extent of the nature and scope” of the defendants’ unlawful conduct and identify their co-conspirators, it said.“This is necessary to stem the irreparable harm being caused” and to help XM in supporting its contention that “preliminary injunctive relief is appropriate,” it said.

In seeking the production of documents under subpoena from nonparties in the case, XM is aware there's “vital information concerning the extent and methods” of the defendants’ unlawful activities in the possession of third parties such as FedEx, UPS, DHL, Amazon, eBay, PayPal and Craigslist, said the motion. The defendants are using those services to “perpetrate” their scheme, and “are under no duty to preserve such evidence,” it said.

Expedited discovery to third parties will allow XM to “collect this and other information before it is permanently lost and to take corrective and preventive measures to stem the damage being caused” by the trafficking scheme, said the motion. Good cause exists for expedited discovery because XM’s requests are limited to nonparties with information that could lead to the identification of the defendants’ co-conspirators, it said. That would provide XM with a basis to amend its complaint “to add those individuals or entities as defendants in this case,” it said.