In the parallel lawsuit vs Facebook due to its Cambridge Analytica cover-up, we just learned more in filings posted today as FB tries to shut down discovery and deposition ordered of Zuckerberg. FB included 4,200+ employees on messages they are claiming are privileged. lol. /1
If you're wondering about the highlighted name, it's the "equal partner" in the company that harvested the millions of records and sold them to Cambridge Analytica who was sketchily hired by Facebook in Nov 2015 as the Guardian reporter was closing in on the scandal. /2
Facebook's "privilege log" of everything they want to withhold from discovery was incredibly vague, generalizes groups and roles and clearly includes a lot of names and companies who according to decisions in other courts aren't privileged. Fairly absurd attempt to bury stuff. /3
Interesting, outside "consultants" which NdCal Court has already ruled aren't privileged since they weren't providing legal advice for this lawsuit but instead Zuckerberg announced to world were helping make sure the product was safe. What two firms helped with this effort? /4
Facebook filed just Friday in NdCal to seal names of FTI Consulting and Stroz Friedberg which had surfaced during a hearing but now we see them in public documents in DC Superior Court one day later. Outcast Agency is a "PR" firm Facebook has long used with ties to a16z, too. /5
There is also a doc the AG of DC office wants titled "Comms Source of Truth" which according to the motion had hundreds of people on it then later had outside counsel on it that Facebook now claimed to be privileged. The title and description of the doc are very interesting. /6
One name jumps out and that's a former journalist who in her now unsealed deposition said she was actually doing Strategic Communications directly for Sheryl Sandberg. Sandberg avoided testimony with Congress around this entire matter and likely was a key conduit of clean-up. /7
Basically Facebook is WAAAAY over-reaching in trying to suggest communications are privileged with people who aren't even attorneys or in the case of these two people they're lawyers who represent industry groups and I have no idea how they could also be working for FB, too. /8
And for your trivia, among the 4,200+ employees claimed on privileged communications, there is even one Senate Majority Leader's daughter. Keep you posted but between NdCal and DC Superior, things are moving much more quickly of late. I'll add the Sat. thread below this. /9
Anyway, here is the parallel case in NdCal which also moved over the weekend. /eof
Mmmm. Let’s see @RichLightShed, what could have changed??? Could it be… could it be…Facebook lost two motions to dismiss rulings by courts since last earnings…. - the FTC antitrust lawsuit to break it up and a 9th circuit case by Boasberg and Koh respectively?
It seems everything they’re doing and saying right now is to defend the company as walls are closing in on them finally… two other consumer protection rulings friday.
They also filed their response to this one last week which I believe may ultimately be the lawsuit that brings current leadership down and maybe the company…
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...
/2
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
Two things on the advertising market: (1) over many years, we established two companies (google/facebook) took most of the growth (“duopoly”) leading now to significant legislation and enforcement. They’ve long had talking points fed thru allies to spin scrutiny in order to… /1
try to dilute the point: a) “not globally!” (then they include China where they mostly don’t do business), b) “some of that is gross and we share it!” (ignoring the control of the $ flow and terms of trade go thru them), c) more recently, “it’s a tripololy! look at Amazon!”… /2
on the last point, Amazon finally broke out ad revenues of $35 billion. The duopoly were $325 billion last year. Amazon has too much market power and they’re leveraging for ad $, too. But let’s be clear, they don’t compete or weaken the lawsuits around google or Facebook. /3
After listening to Facebook’s earnings a second time because a $270B drop in valuation deserves it, a few things stood out to me. First, the CFO, who I’ve been saying for 18 months needs to be clearer about their kneecapping, said the word “headwinds” 25 times so it’s a start. /1
Second, I’m seeing too much focus on flat/drop of Daily Active Users. Yes, that’s new but it’s their loss in ability to microtarget users as they’re opting out of tracking (iOS) plus CA and EU privacy laws are catching up to them that kneecaps their surveillance biz model. /2
Let’s listen in to their earnings a bit here. Here is the CFO during Q&A talking through some of the “headwinds” related to iOS and he also sort of mentions they may not be able to transfer data across the Atlantic any more (Schrems II). /3
ok, I'm here. Facebook earnings. Since they're getting clobbered, I expect they'll talk a lot about shiny new things and blame underperformance on "competition" as because any pressure on growth will be used as a defense for their antitrust lawsuits with state AGs and FTC. /1
drinking game for 5pm, have a drink every time Mark, Sheryl or Dave use a derivative of the word "compete." Pace yourselves. /2
This is the FUD section still as I pointed out Q2 last year. Just in case anyone wants to ask Facebook to finally disclose arguably the most important metric to their ads business and 97%+ of their revenues. /3
Meanwhile in 9th circuit - case where discovery has been ordered for Zuckerberg+Sandberg related to Cambridge cover-up, along with a lot of sensitive discovery... Facebook is losing A LOT lately. FB has been arguing users' data isn't retrievable because...it's everywhere... /1
Facebook has been trying to avoid turning over its' "Secret Sauce Report", including now all iterations of the living document, since June 2020. /2
Again, Court seems to be rightly getting impatient. These deadlines issued last night are for tomorrow. /3