The Paparazzi “leaks” case has been stayed pending the outcome of ordered arbitration proceedings.

Objections to compelled arbitration were overruled as per an April 3rd order.

Paparazzi filed suit back in May 2022 in an attempt to stop leaking of sensitive business information.

Named defendants in the suit were Geraldine Souza, Kylee Robinette, Morgan Ferguson, Jennifer Dyer, Jaime Robinson, Jennifer Carrolm Kimberly Drewry and ex-employee Melissa Sorenson.

Back in January Sorenson, Robinette and Dyer settled with Paparazzi.

By order of the court, the remaining defendants have been compelled to enter into arbitration proceedings.

In handing down its April 3rd order, the court found that Paparazzi initiating proceeds against the defendants didn’t constitute waivering the arbitration provision in Paparazzi’s Consultant Agreement.

The mere fact that Paparazzi brought suit does not evince an intent to waive the right to compel arbitration.

The Paparazzi Parties initially brought suit requesting injunctive relief to protect their intellectual property.

The arbitration provision specifically carved out the ability for Paparazzi to seek this type of injunctive relief.

Thus, filing an action allowed by the terms of the arbitration provision is not inconsistent with the right to arbitrate.

Other arguments raised against compelling arbitration were also shot down.

As I understand it, arbitration proceedings will apply both to Paparazzi’s lawsuit and counterclaims filed by Souza, Carol and Robinson.

The Paparazzi Parties cannot avoid the terms of the arbitration provision any more than the Souza Parties.

As a result of the arbitration order, the court also ordered the entire case stayed pending the outcome.

The case may be reopened upon motion by any party after the completion of arbitration.

There is no timeline for completion of arbitration proceedings. I’ll keep an eye on the case docket for updates.

 

Update 28th March 2026 – Geraldine Souza has ignored arbitration proceedings, resulting in the American Arbitration Association closing proceedings.

From a March 23rd Status Report filed by Paparazzi;

Paparazzi proceeded with its claims against Ms. Souza in arbitration before the American Arbitration Association (“AAA”) as required by the Confidential Settlement Agreement between Paparazzi and Ms. Souza.

However, despite having been served with Paparazzi’s Arbitration Demand and Statement of Claims and being included on every communication between Paparazzi and the AAA, Ms. Souza never made an appearance in the arbitration; never participated in the proceeding in any manner; never communicated with counsel for Paparazzi; and never paid the deposits she was required to pay to the AAA pursuant to its rules.

As such, on February 18, 2026, the AAA closed the arbitration prior to administering the case due to Ms. Souza’s failure to pay her required deposits.

Now, being unable to pursue its claims in arbitration as expressly contemplated by the Confidential Settlement Agreement, Paparazzi intends to file suit against Ms. Souza in this Court seeking the same relief it previously sought in arbitration and noting the case as a related case.

Recent posts on Souza’s FaceBook profile suggest she is currently undergoing chemotherapy treatment for a cancer diagnosis.

I don’t have an update on arbitration proceedings against Morgan Ferguson, Jaime Robinson, Jennifer Carrolm and Kimberly Drewry.

 

Update 28th April 2026 – Paparazzi filed a second lawsuit against Geraldine Souza on April 7th, 2026.