Sheryl Sandberg, Facebook's COO, has never had to testify under oath about a major scandal but has 4 career-defining, very damaging matters hitting concurrently. *Allegations* involve #1 collusion (with Google), #2 insurrection, #3 cover-up of breach, #4 fraud. Here we go...
/1
#1 State AGs amended complaint vs Google was ordered filed mostly unsealed by tomorrow. And SDNY Court ruled last month two senior Facebook names involved in a market rigging allegation, a section one Sherman Act violation, can't be redacted. Sandberg is expected to be one. /2
#2 Facebook received subpoena today from Jan 6th Select Committee as it reportedly has avoided turning over requested info. Facebook also showed up as a tool in today's indictments of alleged seditious conspiracy. Sandberg previously minimized its role. /3
#3 a big, under-reported one. Cambridge Analytica cover-up appears to be unraveling. DC Superior Court ordered her boss's deposition and N District of Cal Court is winning key discovery around matter - all earlier this week with their top Gibson Dunn attorneys losing motions. /4
Digging in here a bit more. Discovery of Sandberg's documents according to the plaintiffs "will shed considerable additional light on the scandal." And we learned in documents being unsealed a bit more why they may. /5
If you recall when scandal broke, Facebook went dark for 5 days (3/16/18-3/21/18). This redaction is communications between Sandberg and cybersecurity firm (aka their auditors / clean-up crew) which apparently happened the same day Sandberg broke her silence (on CNBC). But... /6
Facebook lost motions to seal 2 firms' that worked for them including the one Sheryl was messaging immediately after scandal broke. Court ruled these messages are discoverable as they're not attorney-privileged or work product as FB planned audit regardless of lawsuits. So... /7
We don't what will be in this discovery but it involves a period where Facebook was dark, Sandberg was messaging a clean-up crew, those messages are discoverable and allegations she was "at the forefront of [their response] as she very much led monetization of user data. /8
Speaking of that business model, Facebook also lost a motion fighting discovery of the nearly 150 sources of data they have on each of the plaintiffs. First step is to describe each of these sources at a high-level and how they're used. This must be very uncomfortable for FB. /9
#4 Fraud. Over the holidays, a ton of evidence was unsealed in a N District of Cal case which added fraud allegations (knowledge of inflated potential reach metrics). The evidence is damning considering FB whistleblower also filed SEC complaint related to this matter. /10
If you want to go deeper on any of these, here is a thread on #1. Again, Google-Facebook collusion allegations should have some redactions removed tomorrow sometime on the docket. /11
here is a thread on #3 leading into a bunch of information on the Cambridge Analytica cover-up which is also the subject of massive shareholder suits, too, in Delaware. /12
And a thread on #4 including the documents which were unsealed over the holiday, they're quite something to read through carefully. I wouldn't be surprised if the SEC is digging into this complaint by the whistleblower at this point. /13
by the way, this is the first interview Sandberg did (with @JBoorstin) referenced in tweet 6. On the very same day, she was involved in messages with FB's clean-up firm reportedly booted out of Cambridge Analytica UK offices on March 19th by regulator. /14 cnbc.com/video/2018/03/…
I'll stop there, bracing for my mentions to be full of "lean in" quips... in all seriousness, back to my first tweet, these are significant issues and as far as anyone knows, she has never had to answer on any of them under oath. That's INSANE. /14
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Woah. Exhibit list just posted for Facebook trial in DE starting in a few weeks. We finally have confirmation Sheryl Sandberg was deposed by the SEC - one week prior to Zuckerberg which also kept secret until a lawsuit unsealed it. Sandberg was also sanctioned in this case. /1
This matters as it gets at Who Knew What When at FB ahead of the world finding out its platform was leaking personal data for years. Zuckerberg was dodgy at best under oath to Congress, FB responses to Parliaments focused on 2018 news. But exhibits include Jan 2017 MZ emails. /2
The DE lawsuit claims Facebook's $5 billion record settlement was inflated in order to protect its CEO, Zuckerberg, and also includes (civil) insider trading claims. Zuckerberg was ordered to sit for multiple day depo this year, will have to testify live. /3
Scanning front pages across America this morning. Still today, the local A1 best captures the biggest story of the day. The majors from NY to LA to Detroit to even Arkansas. /1
From Washington DC all of the way up to the major newspapers in Alaska… the No Kings protest images are everywhere capturing the moment. /2
All of them capture peaceful protest, democracy in action, and what America is all about at a time when social media algorithms may distort what the day was all about. Illinois to Colorado. /3
Incredible work being done by the press to keep facts building on facts. Grateful. This entire WSJ report overnight starting with this lede on how White House orders sparked LA crackdown is both chilling and informative. /1
This statement. “We came to the United States for protection of what we encountered in Russia. It seems that we are encountering here what we fled.” /2
WSJ separating out cases of targeting groups who have not committed crimes but even noting here incredible resources being used against what appears to be clear, First Amendment protected activity alerted the community. Here is the must-read report. /3 wsj.com/us-news/protes…
Confession. Having watched Scott Pelley's outstanding work over nearly three decades, I almost didn't take the time to watch his W.F. commencement speech thinking the news reports told me enough of the facts. Frankly, that would have been a huge mistake on my part. Huge. 1/5
Disclosure: I'm a 60 Minutes fan. In fact, I read Don Hewitt's "Tell Me a Story" after nearly a decade in sports media and it likely tipped the scale in 2007 when I decided to jump to work at CBS. I find Pelley and team brilliant in telling stories in barely 15 min segments. 2/5
“If liberty means anything at all, it means telling someone something that they don’t want to hear. I fear there may be some people in the audience who don’t want to hear what I have to say today but I appreciate your forbearance in this small act of liberty.” - Scott Pelley 3/5
wow, another order for Mark Zuckerberg to sit for another court deposition. This time in a case involving privacy violations with ingesting web-wide health data. Remember they paid billions in cases to try to avoid this. Data and privacy issues are especially sensitive. /1
Zuckerberg depositions are interesting as they often go on for hours with highly informed attorneys driving for answers. And those answers may be put up against the often questioned veracity of his answers to Congress. Yes, as a CEO, he has testified to Congress A LOT. /2
I think his first real depo was SEC on very sensitive data scandal leading to $5B+ settlements with FTC+SEC. That scandal is still playing out in courts (did he overpay to protect himself?) It took 3yrs to get unsealed after I caught it in a footnote. /3
The Verge comes in with a massive scoop on the backstory reporting it was Musk - and Sacks - behind the scenes trying to blow up IP to train AI on behalf of his allies. This wouldn't be a surprise to anyone. /1
they have reports and details on the carnage and firing of the leadership and on the possible incorrect assumption that the new people in charge were running their playbook. /2
It may be rare that @mrddmia is in agreement with Dems but in the world of accountability for big tech abuse whether over data, monetization, IP, censorship, privacy, you name it, these aren't partisan issues. appreciate the shared voice from advocates all around. /3