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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OK all ye people depressed Judge Mehta didn't order Google broken into bits this week. I'm here to cheer you up. DOJ has its other remedies trial in 16 days and just posted its PFJ (Proposed Final Remedies) now 60+ pages of brilliant detail. Let me walk you through key terms. /1
This is the 2023 US v Google adtech win - the one DCN and its premium publishers have long been much more deep and focused on. Here’s what it means for publishers of all types - and why it will be a massive win for the open web if Judge Brinkema signs on (I believe she will). /2
First, clear structural remedies. Google must divest AdX, its ad exchange, w/in 2yrs and likely DFP, its publisher ad server. No more vertical ad stack monopoly with interest conflicts. This would finally decouple tools Google can use to rig auctions and suppress pub revenues. /3
All eyes at Google on streaming NFL game tonight but Google Inc and its many monopolies have had quite the week. I’ve been absorbing on this end, some quick Friday thoughts on things missed. Bad news certainly for the public, and also DCN members, in US v Google Search case. /1
Judge Mehta said "no thanks" to helping publishers - because he said no pubs testified. Maybe that’s what retaliation fear looks like??? He also noted the unlawful conduct was about distribution deals, not deals with publishers. More on that in a minute. /2
Despite Mehta finding Google illegally maintained its 95%+ search monopoly with browser deals, he also said it’s OK for Google to keep owning Chrome - the world’s biggest browser - so they can keep paying everyone else and free riding on their own browser. All bad here. /3
Woah. Facebook just settled immediately before board members Andreessen, Thiel, Zuckerberg, Desmond-Hellman, and Sheryl Sandberg were set to testify as to who knew what and when…depriving public of any accountability and facts in courtroom from board and officer comms. 1/3
Counter to Facebook lawyers framing yesterday, the DC AG suit isn’t dead (awaiting DC Circuit from 1/30 hearing), and NdCal shareholder suit also still alive. This is the closest to
Courtroom testimony after about $8B+ in settlements. 2/3
Credit to Reuters, Delaware Online who I saw actually showed up to cover. It’s likely why Facebook, Zuckerberg and its board, let this one get so close. But the grid. But today things were likely to get very very hot. 3/3
News cycles. News cycles. What I called the "mother of all lawsuits" for Facebook in 2021 goes to trial TOMORROW. Zuckerberg, Marc Andreessen, Sheryl Sandberg, Peter Thiel, other board members expected to testify live as to who knew what and when in its largest scandal ever. /1
Meanwhile, Zuckerberg and Facebook comms have successfully flooded the zone with AI-hype and exclusive CEO interviews mostly distracting the press away from a trial on how they leveraged, and allegedly abused, personal data to drive a decade of massive growth in mobile share. /2
The case involves allegations the board broke its loyalty to company (and Zuckerberg insider traded on stock) after Facebook had been long violating its FTC consent decree and other privacy laws - all covered up by nearly $8 billion in settlements ($5B alone with the FTC). /3
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