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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Day 2. A few comments after 2nd day of testimony from Mark Zuckerberg. FTC began with impeachment as Zuckerberg had said yesterday friends & family were only about 25% of Stories shared when instead it appears more in 63-73% range. I would hammer him on these, it's a pattern. /1
Remember, we've learned from MZ's deposition to SEC and many trips to Congress, he may say too much and seems to talk his way through problems. Speaking of... USvGoogle on the weight of contemporaneous statements is already a massive shadow over MZ. /2
I think MZ has a tell. He often says, "Well that is an interesting question" when asked about his prior contemporaneous statements on fairly obvious questions such as "Is it true that Facebook users like less ads in their feeds?" /3
with FTC's opening statement slides (109 of them over 86 minutes IYKYK)) now posting, I want to flag just a few of them worth amplifying. /1
These two statements from Judge Boasberg his denial of Meta's motion to dismiss last November will weigh heavily on Facebook imho. The evidence from both the Instagram deal and WhatsApp deal are damning considering just these two bullets. /2
This slide (and the next one) were interesting in getting internal reflections of Meta/Facebook forcing more ads into the Instagram experience. /3
FTC v Meta Day 1. Opening arguments for FTC laid out its case. As predicted, Meta tried to blow hole into market definition. This actually comes later in trial so not dwelling but will add some context at end. But first witness 1 was CEO Zuckerberg. Dead to rights on conduct. /1
Internal Facebook employee messages (some we've previously seen plus plenty more) make the Instagram deal clearly anticompetitive conduct imho. Exhibits may not post until Wed so my quotes are my best snapshots from messages in exhibits on screens. Relay with care. I tried. /2
Zuckerberg has testified for only 3 hrs of FTC's estimated 7hrs so he's back on stand tomorrow at 9:30am ET (remember, Careless People book said he hates mornings). FTC has been systematically laying out timeline of Facebook shift to mobile and acquisition of Instagram. /3
As Meta’s Andy Stone works overnight criticizing whistleblower testimony today on their role in China, let’s not forget Meta worked furiously thru billions in settlements to keep sealed it provided data access to 86,961 developers in China unsealed after court sanctions in 2023.
That slide is from their own internal audit. The one they promised the public and Congress in testimony then buried it including fighting to keep the forensic clean up artists aka auditors under seal, too, until an attorney said it in open courtroom. storage.courtlistener.com/recap/gov.usco…
Here is Stone’s statement this morning. He has a track record burying for his bosses so just think it’s important context when he tries to brush aside China. Thank you @HawleyMO for accountability here. nbcnews.com/tech/social-me…
Pretrial orders starting to give taste as to why WSJ reports Mark Zuckerberg is meeting Pres. Trump desperately trying to settle its FTC lawsuit 11 days from trial. Court just ordered Meta to release all internal discussions of "integrity" issues up until 2020. That's toxic. /1
Also included is evidence as to what appears to be Apple warning Facebook/Meta to address CSAM on WhatsApp chat groups. Remember, advertisers built this company investing hundreds of billions of dollars to support it. /2
On that note, we will also likely see the financials for WhatsApp which was acquired by Facebook for nearly $19B despite almost no revenues. The why this happened will be a key argument in the court room. /3
The American values of IP protection have been a cornerstone in the country’s innovative spirit and competitive edge over foreign adversaries. DCN focused on strong copyright protections in our comments filed for the AI Action Plan. Will share some thoughts here. /1
Weakening copyright protections, whether at home or abroad, threatens US economic growth and the global competitiveness. Importantly, this point is inclusive of content creators across all platforms. The invented "right to learn" by machines is BS spin from OpenAI and Google. /2
Simply put, AI firms must not use copyrighted content without consent or compensation, as this undermines fair competition and creator rights. And they should be required to disclose when they've used it without consent. /3