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. a deeply concerning internal Google doc just unsealed in US DOJ vs Google (adtech antitrust trial seven weeks from now).
Smells like bid rigging.
Translation (by me):
Red = bad for Google
Green = good for G
'Levels playing field' = helps G
'fairer competition' = helps G /1
at the very least, demonstrates the conflict of interest with having significant market power on both sides. here is a Google doc roadmapping these changes to their auctions from the buy-side and the sell-side ahead of analyzing the impact and mitigating outcry. /2
for example, here is what looks to be Google analyzing what would happen to their biz when they removed "Last Look" which gave Google a significant advantage after an ad auction had been run. Don't miss the Green at bottom. /3
more news yesterday in flurry of activity in lawsuit vs Facebook for (over)paying FTC $5B to protect Zuckerberg. Big names involved. Board records inspection shows who's who in 'approval' - everyone now gone except Zuckerberg, Andresseen and Alford. Gets interesting quickly... /1
Yes, Andreessen joined Thiel in politics with full-throated endorsement of Trump with close allies. Alford was CFO of Chan Zuckerberg right before approval. WSJ reported Chenault and Zients (important: now Biden's chief of staff) stepped down over disagreements with Mark Z. /2
So what's happening. Well, first in April 2024 all of these prior and current board members were served in the lawsuit. Again, this is based on a prior records inspection of non-privileged board documents and the Court at that point deciding to allow the case to move forward. /3
Friday night KA-boom. In adtech antitrust lawsuit against Google, court has ordered the state AGs may depose Google co-founder Sergey Brin and CEO Sundar Pichai. Huge. /1
So the two cited reasons Pichai will be deposed (although not all of them) are incredibly sensitive. 1), “Jedi Blue,” the alleged collusion with Facebook that everyone wrongly wrote off back earlier in this lawsuit. Google CEO Pichai met directly with Facebook CEO Zuckerberg. /2
A reminder the Google and Facebook deal (aka the “NBA” or “Jedi Blue”) is also in a private antitrust suit against Facebook. The deal was signed by the lieutenants of the CEOs (Sheryl Sandberg for Facebook). /3
US v Google flooded docket (103 filings!) over weekend as Court said Friday...hey now, let's skip summary judgment, this baby is going to trial. Much is companies trying to keep their secrets sealed but we get a sense for the witnesses. And a small taste of evidence to come. /1
On the companies filing to keep their secrets sealed which they mostly provided under subpoena, it's a mix of adtech, agencies, platforms, you name it. /2
We also learn some glossary items which likely come up:
'RASTA' - Google's tool to evaluate new 'launches' (aka changes) in ad serving system, runs on live traffic
'Ariane' - identifies and summarized launches
'Launch' - creative name (lol), it replaced Ariane in 2020/2021 /3
SCOTUS just posted order list. It granted cert to Facebook on its Cambridge Analytica matter. Only first question but that’s a huge one. Basically should Facebook have disclosed to shareholders what it started to cover up in 2015 rather than presenting risk as hypothetical? /1
Here is the actual first question as written. One immediate item, it’s outrageous if Justice Kavanaugh didn’t/doesn’t recuse seeing his reported best friend, Joel Kaplan, was directly involved in the matter and its cover up. He threw his SCOTUS confirmation party IIRC. /2
Here is a link into background. I strongly urge press not to overlook this or assume you know fact history. Over the years much has played out in coverup and much of the reporting has been bent towards Facebook’s spin. I am more than happy to point you to the court records. /3
“X has lost dozens of major advertisers under Musk’s ownership, with 74 out of the top 100 U.S. advertisers from that month no longer spending on the platform as of May.” 1/4
Smart NBC report focusing on amplification, velocity and reach, “X isn’t living up to its own policies when it allows violent extremists to use the platform’s amplification features.” 2/4
“It’s not clear to what extent people at X were aware that the company was monetizing the extremist hashtags prior to NBC News’ reporting.” 3/4