woah. new on DC docket. looks like the attorney general of DC filed 270 pages late Friday night documenting Facebook's multi-year resistance to discovery in its cover-up of Cambridge Analytica and related platform issues for 3yrs. stay with me until the end. /1
The most sensitive part is Facebook protecting these 4 executives from discovery/depositions. It's claimed to also be reason Zuckerberg was willing to pay $5B to the FTC.
It's an insult to every user a breach this problematic could happen without evidence from these 4 execs. /2
I mean this claim involved one of more infamous political operatives in DC at Facebook involved in a cover-up that protected the use of data in the most controversial election operation in history and allowed senior execs to continue to trade on the stock in the process. /3
for the employees and former employees (which Facebook permitted discovery), we can't see all of the queries that were done but some of the terms are certainly ones that have long been of interest. /4
so DC will play out, Facebook argues nothing new can be discovered from Zuckerberg, Sandberg, Schrage and Kaplan. It's all duplicative information and burdensome. Yes, that's patently absurd. Which brings me to the popcorn... /5
there's always been a parallel (multidistrict) case in N California and now it has worked through same issue. The Special Master assigned to sort out the similar discovery issues determined indeed it's likely Zuckerberg and Sandberg possess relevant and unique information. /6
And the plaintiffs want the communications between Sandberg and Zuckerberg, between the two of them and the board (some already turned over in very active shareholder suits), third parties and others missed. Again, this involves a cover-up. /7
The Court has given them until January 31, 2022. Again, this involves the files of Mark Zuckerberg and Sheryl Sandberg. /8
And they know Sandberg's role. Much is redacted but a reminder she has never answered questions under oath about the scandal as far as we know it. NYT reported the topic was off limits the one time she testified to Congress. She refused summons from international Parliaments. /9
it gets better. After the court ordered the documents search for Zuckerberg and Sandberg, Facebook quickly followed up to seal whatever discovery comes of it but now was just denied by the Court. I doubt it's over but it's a strong signal much should be publicly available. /10
now turning back to the DC case... a number of documents are sealed in the 270pg report just posted but beyond the unredacted discovery terms, we learn of a dispute over "Mr. Zuckerberg's notebooks" (infamous) being subject to discovery as they are in the California case. /11
And we also learn of some of the more recent depositions. Barnes was on the ground in 2016 election. Zuckerberg and Allison Hendrix have been noticed for depositions (key exec in platform data issues and was a point on Cambridge Analytica cover-up from early on). /12
and a reminder, the 270pg report is for more time. FB has been stalling and frustrating courts for nearly 4yrs. That's how they win. And it's patently absurd they get away with it considering there is nothing to give us confidence their largest scandal won't happen again. /13
and I'll add to close, there is a massive shareholder suit regarding same cover-up and almost zero press coverage of any of this because it's (a) complex and (b) Facebook's network convinced influencers Cambridge Analytica was an overhyped story. /eof
Also linking to this thread as it’s relevant to know we literally just learned after three years that Zuckerberg was deposed by the SEC on these matters back in 2019 and there is a sealed deposition transcript.
Woah. Sheryl Sandberg, former COO of Facebook, just sanctioned by Delaware judge for deleting emails ahead of trial this spring. This is the state pension shareholder case alleging the company overpaid the FTC and SEC in $5B+ settlements in order to protect Zuckerberg. /1
Long after the books had been inspected and many lawsuits had played out, it was disclosed last year she had a personal Gmail account under a pseudonym that may have been used for relevant communications. /2
The Judge here calls her a "high sophisticated individual." He probably doesn't know about the 2018 NYT report on how she carved out these issues in her Senate Intel testimony or how their lawyers were sanctioned on related discovery in California. /3
wow. This AI lawsuit against Facebook keeps getting worse as they reluctantly unseal documents on Court orders.
Check out this allegation. Not only two hrs before discovery cut-off but the Friday before we now know Mark Zuckerberg was deposed... /1
Here is the bit from the newly filed and now unsealed third amended complaint. Allegations here Facebook used torrenting to download a pirated dataset to train LLaMA thereby also "seeding" pirated content globally. This is a BFD. /2 storage.courtlistener.com/recap/gov.usco…
In fact, it can be criminal so this count is in the third amended complaint and the state attorney general (hello, @AGRobBonta) should note these allegations here. As it relates to this case, it may also break their privilege claims since it alleged to further a crime. /3
wow. Upon Court order, incriminating exhibits were unsealed at 3:30am in an AI lawsuit against Meta. Once past a 'fake privilege,' it appears Zuckerberg approved the use of a highly controversial, pirated dataset.
Note OpenAI, too? AI companies with no ethics or guardrails. /1
Here they acknowledge risk in media coverage, and massive EU fines, if "we have used a dataset we know to be pirated." So then you ask yourself the question, did they actually know it was pirated and use it? I uploaded docs - . /2 storage.courtlistener.com/recap/gov.usco…
To that question, here is how the internal project manager describes the dataset. Note the line (these are all my yellow highlights), "when sourced from copyrighted materials without the permission of copyright holders." /3
woah. This Friday? Too much moving on court dockets so I will surface for you. This matters, in this mega-Facebook case, as highly respected Chenault was Chairman of Facebook's board during its biggest scandals. WSJ reported he left board after disagreements with Zuckerberg. /1
Here is the report on his departure, it includes reports of disagreements with Peter Thiel, too, over elections policies and "clashes" over moderation policies.
Btw, highly relevant to the last 24hrs of news. /2 wsj.com/articles/chena…
Moving on, Zuckerberg has also been noticed for deposition after "alleged wrongdoing on a truly colossal scale." He was already deposed last month in Hawaii for 7hrs. I would expect SEC closely compares transcripts to their 2019 depo which @zamaan_qureshi managed to unseal. /3
Here is how NYT reported it in the complaint. Google and Facebook suggested it was misrepresented. Their proxies have misled public into thinking it was dismissed from lawsuit despite Google's CEO being deposed about it only months ago. /3 nytimes.com/2021/01/17/tec…
woah. ~300 redacted summary judgment google exhibits posted in TX. I've uploaded all. most eye-popping - we finally get Google-Facebook contract (aka Jedi Blue) alleged as bid rigging (yes, press was misled, it's still part of the claims). /1
If you need a definition for Match Rate, Google and Facebook include it with example of using the "encrypted blob" on mobile, feels very much like a fingerprint y'all. Here is the full contract, don't sleep on section dealing with monopoly enforcement. /2 storage.courtlistener.com/recap/gov.usco…
There are a ton of new exhibits from discovery with similar themes of Google secretly using projects to manipulate its black box auctions. "The first rule of Bernanke is we don't talk about Bernanke." /3