Friday night court filings add to Facebook's horrible terrible week. Judge stepped in and ran over FB affirming expectations on negligent discovery: 1) production of Zuckerberg's notebooks 2) discovery of Zuckerberg/Sandberg 3) details on FB's secret whitelisting data deals
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4) production of 9 plaintiffs' data in Facebook's possession - ALL OF IT (more on this in a second) 5) more depositions 6) production of Facebook's "secret sauce" memo (all revisions)
now some details...
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On the plaintiffs' data ordered for discovery, Facebook's legal team has tries to argue they only have to turn over the data which is accessible or shared. Read what the Judge said about this back to Facebook confirming this is Facebook's position. Which leads naturally to... /3
This entire exchange between the Court and Facebook's legal team (Ms Stein) is something, "it must be that Facebooks collects additional information which is does not want to produce to the named plaintiffs." /4
You can see how Facebook tried to suggest the only data they have to turn over is what is in the "social graph" and "Download Your Information" file. But clearly there is more. With backs against wall, they then argue it's "extraordinarily difficult to find all of it." 👀 /5
If it's too hard ... too difficult ... to pull all of the data Facebook has on a user data protection authorities are all leaning in harder (California/Europe). Even Facebook's own employee isn't signing this section on "sharing data" during deposition... /6
The plaintiff attorneys who are super good and technical jumped all over all of this reminding Court data reciprocity is included in the case and Facebook also "possesses data from data brokers" in addition to inferred data. They want it all, Court rules it's all relevant. /7
"We want a response [from Facebook] admitting that, as well, and an order so that we can tell the jury they took so much data from these nine people they can't even identify it. They don't know where it is, they don't know how it was used." 👀/8
Facebook was also ordered to turn over its communications and audits Zuckerberg promised Congress under oath. Court ordered none of these are privileged since Facebook told the world they would do the investigation to make sure their products were safe. /9
Facebook also filed motion Friday asking to seal the names of two firms that conducted their audits. For some reason, FB really, really doesn't want the world to know who cleaned up the other potential Cambridge Analyticas who have Facebook's user data. /9
These audits are all called the "ADI" (app developer investigation) and it appears there are a whole lot of communications which aren't privileged. AG in Massachusetts also pushed to get these so you've got to expect this is how they will get turned over. /10
These are part of Cambridge Analytica cover-up lawsuits. Facebook successfully wrote a narrative why CA didn't matter but the reality has always been it very much did due to (1) cover-up (securities/governance) and (2) consumer protection (platform was designed to leak). /11
And I'll leave the final words to the Court from their filing last night. Facebook "is far from completing document production. Despite orders from Judge Corley and the Special Master" and the Judge writing this order... /12
"At every turn, Facebook has disparaged Plaintiffs' discovery requests and their efforts to get the information they need. This is a false narrative, belied by the results of Plaintiffs' motions before Judge Corley and the Special Master." /13
This is NdCal (Case No. 18-md-02843-VC-JSC). Gibson Dunn is defending Facebook - not used to being pushed around like this. There was a filing in DC Friday, too, for a parallel case where Court has also lost patience with FB's delay tactics ordering deposition of Zuckerberg. /14
Adding this Order by the Court for this Thursday's NdCal hearing for Facebook's cover-up of Cambridge Analytica related matters threaded above. /15
Incoming... this also just posted. An order from Special Master for case. "MANO" stands for Make America Number One. There's long been questions on extent of Facebook's involvement working alongside Cambridge Analytica employees and campaign. Unlikely much is privileged. /16
Same case, third key filing in like 72 hours. Special Master has ordered the following plaintiff data to be turned over. The question here will be whether Facebook can avoid turning over any user data it has harvested to "tune" its algorithms that's not on the "front end." /17
fwiw, Facebook interrupted hearing then successfully motioned to have the two firms sealed who did their "unprecedented" audits of all potential Cambridge Analyticas. But they came out in a DC lawsuit earlier this week - FTI Consulting and Stroz Friedberg - but shhhhh.... /18
Adding this post as it includes the consultants who worked on the "audits" for Facebook to try to identify where else its data flowed across the universe. Some interesting backgrounds and experience. /19
Bingo. Facebook just filed answer to riddle of which Facebook executive is being sent in response to the Court's order - as the Judge said any other plans should be postponed. It's one of their senior legal execs who has been there more than a decade. /20
Gibson Dunn on behalf of Facebook names the executive but then goes on a six page rant arguing it hasn't delayed and deflected discovery. This paragraph is the most absurd failing to point out facebook covered-up the core issues until 2018 when the lawsuit was then filed. /21
And this order from the Special Master just posted. Everyone/everything in yellow is in a very sensitive position related to the extent of Cambridge Analytics-like abuse of data (and the cover-up). I am telling you...it's getting hot in California. Watch this space. /22
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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
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
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
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
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 $29B in penalties. /1
"Project Bernanke" is an oldie but goodie that gets a lot of discussion. ICYMI, Google would allegedly increase the first highest and the second highest bid in its 2nd-price auctions then reinvest the "saved" funds back into other bids to Google wins more auctions. /2
The problem is while it may have ended up providing more revenue to the publisher (from/through Google) and no doubt to Google, Inc, it allegedly ignored the revenue which could have come through another channel if Google didn't manipulate the rev share as it ran the auctions. /3
US v Google II Closing arguments today.
70min for DOJ-> 95min for Google-> 20min for DOJ. Having predicted this case as better odds than search case (Google already lost in August), nothing changed my mind today. I wrote down: influence/$, 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
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
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
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
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
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
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/…