ok, it's started. if you're interested in Facebook accountability, you don't want to miss this. Judge already just told the plaintiffs to "file a motion for sanctions" because "Facebook's discovery conduct has been sanctionable." More coming... /1
holy $%&!, Judge has already said he thinks the partners at Gibson Dunn should also be sanctioned. "The plaintiffs should be rewarded all costs and plaintiffs fees on the discovery issues which Facebook has been stonewalling." /2
(note to press, if you cover Facebook and you're not watching this hearing, I am sorry. I tried to warn you). /3
Judge just once again invited plaintiffs to file for sanctions and said if the plaintiffs choose not to also sanction the partners at their law firm then he'll want to know why not. /4
mark zuckerberg, sheryl sandberg, their board and leadership team owe Sandeep Solankin who is taking one for the team on their multiyear cover-up. He's up now. /5
Judge told Solanki he has to attend all status conferences, he's required to attend all mediation sessions with Special Master, and to make a final decision on FB's behalf in all mediation sessions. If he needs to run anything up the flagpole then the flagpole needs to attend. /6
Judge also said not only does every person above Solanki required for a decision need to be in attendance but if Facebook doesn't make a decision at the session then Facebook will be sanctioned. If it changes after the session, Facebook will also be sanctioned. Brutal. /7
Judge: "Anything else we can discuss today? Because this case is going to get moving...it's been moving too slow... starting today, I will hear any appeals from the Special Master...this case is gong to be moving a lot faster." /8
Facebook's legal team has to turn over all documents from the App Developer Investigation within 21 days. And within all discovery, any doubts, should be turned over to the plaintiffs. /9
Court also said to take any depositions now. It's Facebook's fault that things have been delayed. And if the plaintiffs need to depose anyone twice from Facebook then they'll be able to do that. /10
OK, it's ended. I've never seen a company and it's very top lawyers/firm get scorched by a Judge like that one. I suggested popcorn but in all honesty I didn't expect the show to be that good. Anyone else who watched please feel free to share your observations. /11
I'll add this older thread to end if anyone wants to dive deeper on this case and its importance. Ultimately it gets to the heart of the entire timeline (part of a shareholder suit in Delaware, too) and testimony to Congress (hence the role of @aoc). /12
Orders posted. "The Court invited the plaintiffs to file a motion for sanctions against defendants and their attorneys regarding their conduct throughout the discovery process. Motions for Sanctions due by 2/24/2022. The 15 page limit for motions is waived for this motion." /13
Also this new denial from the Special Master compelling Facebook to turn over the "Facebook Secret Sauce" Report including all iterations of it. /14
It’s worth adding in addition to Facebook leadership, Gibson Dunn all being likely uncomfortable with tonight’s hearing, I expect people at Stroz Friedberg and FTI Consulting also must be super uncomfortable as all of the docs from their “investigations” are due in 21 days. /15
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Pretty good report on the earth shaking decision that the IAB’s consent framework and related pop up spam in Europe is illegal. Two unfortunate perspectives included in the piece that i’d like to flag to everyone. /1
This data point is highly misleading and comes from the same group behind the framework at issue. For actual legit quality publishers, these types of ads are very much a minority of the ad revenues albeit they’re a majority of the impressions. That’s part of the problem. /2
This business professor shows up whenever there is a need to lobby the surveillance advertising and adtech lobby pov. I don’t get it. Regardless I would strongly urge no one go to him for legal advice. Strongly. /3
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
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
/1
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