Vindicated Baby Carrier Manufacturer Can’t Keep The Case Sealed

After some consumers complained that a baby carrier manufactured by a company called Ergobaby had safety defects, the claims were investigated and ruled to be without merit by the Consumer Product Safety Commission (CPSC). Per policy, the rejected report remained on the Commission’s online database, and the manufacturer sued to have it taken down. It won, but the manufacturer also wanted the record of the lawsuit mounted against the CPSC placed under seal, arguing that the effect of having its name publicized as part of that record would also be harmful. The Fourth Circuit Court of Appeals ruled that Ergobaby’s claim of reputational harm fell short of a compelling interest, and the fact that a corporation’s image may be tarnished in a lawsuit is “the nature of public litigation” and is not in itself reason to seal the record. Morrison & Foerster attorneys, recapping the case, note the dilemma that companies in like situations can find themselves in, and they suggest what may be a viable alternative to litigation.