Jason Kint Profile picture
Jan 14, 2022 15 tweets 6 min read Read on X
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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More from @jason_kint

Dec 20
Justice takes time. What he knew when. AOC will remember this, “Their lawsuit says Zuckerberg—facing the risk of personal liability over the data privacy scandal—got himself out of trouble by agreeing to pay a larger-than-necessary $5 billion fine with shareholder money.” 1/3 Image
Here is the full report from Bloomberg on Zuckerberg’s deposition which apparently was cut short and late on docs on Dec 3rd. Board members Thiel, Andreessen, others all being deposed these weeks. Press allowed Facebook to rewrite history on this. 2/3 news.bloomberglaw.com/business-and-p…
Here is a good thread that will get you into the details. Sheryl Sandberg also deposed although her assumed prior SEC deposition was sealed. We did finally get Zuckerberg’s which showed his nerves and that the scandal was on his mind much earlier. Thanks to @zamaan_qureshi 3/3
Read 4 tweets
Dec 17
Overnight: FTC plans to call CEO Zuckerberg and (former) CTO Schroepfer in first 2 wks of trial (late April) in DC seeking to break up the company for abuse of monopoly laws. Also on their short list are some very big roles and names. Very likely driving behaviors at the top. /1 Image
As I know their roles...
Chris Cox - chief product officer who took a break when scandals accelerated, and avoided testimony in UK.
Javier Olivan - now COO, key lieutenant
Sheryl Sandberg - former COO, on everything
Alex Schultz - key growth hacker, now CMO /2
Adam Mosseri - key lieutenant, now runs Insta
Dave Wehner - former CFO, deal approval including $19B with no real revenue WhatsApp
Fidji Simo - (former) always in mix, product leadership
Guy Rosen - Onavo alleged packet sniffing of WhatsApp, Snap /3
Read 4 tweets
Dec 10
Woah. Google filed redacted versions of its Summary Judgment exhibits in Texas adtech antitrust case ahead of the March 31 trial. Although this case mirrors DOJ's case awaiting decision, it has even more eye-popping evidence. And an expert suggesting $29B in penalties. /1 Image
"Project Bernanke" is an oldie but goodie that gets a lot of discussion. ICYMI, Google would allegedly increase the first highest and the second highest bid in its 2nd-price auctions then reinvest the "saved" funds back into other bids to Google wins more auctions. /2 Image
The problem is while it may have ended up providing more revenue to the publisher (from/through Google) and no doubt to Google, Inc, it allegedly ignored the revenue which could have come through another channel if Google didn't manipulate the rev share as it ran the auctions. /3 Image
Read 13 tweets
Nov 25
US v Google II Closing arguments today.
70min for DOJ-> 95min for Google-> 20min for DOJ. Having predicted this case as better odds than search case (Google already lost in August), nothing changed my mind today. I wrote down: influence/$, complexity, deception, and arrogance. /1
I'm staying high level on perception first as findings of fact already covered much. On influence/$, DOJ pointed out early on and then again in rebuttal that every single witness presented by Google (except one) was paid or had grants from Google. /2
On complexity, Google again executed on its spaghetti defense with lead counsel, Karen Dunn, bookending trial by running over as she did in her opening. She appeared to skip dozens of slides, many minutes of close. And she loaded her slides while talking twice as fast as DOJ! /3
Read 11 tweets
Nov 21
Bam. There is it. US Department of Justice has filed - requesting divestiture of Chrome as a remedy for court's finding against Google. Android at risk, too. /1 Image
As it relates to Android, here is how DOJ puts it. Forced divestiture is option that "swiftly, efficiently, and decisively strikes at the locus of some anticompetitive conduct at issue here" but we're ok with tight behavioral remedies with option to divest if they don't work. /2 Image
Image
Revenue sharing for search default and/or preferential treatment - dead. Google's tens of billions to Apple - dead (last I saw it's about 15% of Apple's profits). Reminder, this all needs to be argued and approved by Court and then will get appealed. Still far off. /3 Image
Read 11 tweets
Nov 18
KA-BOOM. So when Google and its proxies (see so-called Chamber of Progress), friendly academics and analysts continue to suggest Chrome has nothing to do with the case, please ask them how many days they were at the trial. 1/3 Image
This is super important. It’s an area @DCNorg (premium publishers) are intensely interested and concerned they get right around ability to restrict. The Court and trial made it clear they understood its importance during trial. We’ll be reading closely on Wednesday. 2/3 Image
Here is the full report from Bloomberg who consistent with the entire trial showed up every day, did the hard work, and now got the massive scoop ahead of Wed filing. 3/3 bloomberg.com/news/articles/…
Read 5 tweets

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