SAN FRANCISCO (LN) — U.S. District Judge Jeffrey S. White on Thursday denied plaintiffs' motion for reconsideration in the Dropbox Sign data breach litigation, ruling that the sign-in wrap agreement satisfied the 9th Circuit's standard for enforcing arbitration clauses.

White had previously ordered arbitration in July 2025 but acknowledged an intervening change in controlling law that could alter the analysis of whether users manifested unambiguous assent to the Terms of Service.

The plaintiffs sought reconsideration based on the 9th Circuit's 2025 decision in Godun v. JustAnswer LLC, which tightened the requirements for online contract formation.

White applied the two-step Berman test, which requires that a website provide reasonably conspicuous notice of terms and that the consumer take some action that unambiguously manifests assent.

The court found the first step satisfied by the "large font and placement" of the agreement prompt box that appeared after users completed required fields to access a document.

The dispute centered on the second step: whether clicking the "I agree" button constituted unambiguous assent to the Terms of Service, including the arbitration provision.

The prompt box displayed the text "I agree to be legally bound by this document and the Dropbox Sign Terms of Service" next to the button, with "Terms of Service" in bolded blue text and hyperlinked.

White noted that Godun requires an internet user to be "explicitly advised that the act of clicking will constitute assent to the terms and conditions of an agreement."

The court found the explicit advisement satisfied this requirement, particularly the use of the conjunctive "and" to indicate that clicking the button bound the user to both the document and the Terms of Service.

The order states that "[t]his Court finds that the reasonably prudent internet user would read both sentences in the agreement prompt box and, in conjunction, find that the agreement to affix one’s signature to the document is simultaneously an agreement to accept the Terms of Service explicitly mentioned sentence, including the arbitration provision at issue here."

The plaintiffs had argued that clicking the button only manifested assent to sign the attached document, not to the broader Terms of Service for continued services.

White rejected that reading, concluding that the prompt's language made clear that the act of signing the document also constituted acceptance of the Terms of Service.

The court's order affirms its July 23, 2025, ruling to compel arbitration and stay the data breach litigation pending completion of the arbitration proceedings.

White granted the request to file a declaration by Dropbox's expert Christopher French under seal but declined to consider its contents in the reconsideration analysis.

The case remains stayed while arbitration proceeds, leaving the data breach claims in abeyance.