Woah. Lawsuit against Facebook for overpaying $5b+ to FTC and SEC to limit Zuckerberg’s exposure from its cover-up around Cambridge Analytica just took an interesting twist with allegations Sheryl Sandberg was using and purging a separate Gmail account for sensitive matters. /1
This is in a sanctions motion just unsealed against her and another board member (now Biden Chief of Staff). The Delaware lawsuit is brought by pension funds now deposing a number of the board members after a records inspection allowed for a derivative lawsuit. /2
It appears that the evidence of the spoliation comes from emails showing up on the other end of the communications during discovery. This is how Google’s own spoliation issues surfaced (worth noting Facebook’s Sandberg and Schrage both worked at Google so…) /3
The allegations in the motion are that Sandberg used a pseudonym account on Gmail and those are the emails which were set to automatically delete. /4
If you recall in March 2018, the entire world finally really found out what Facebook had been denying and deflecting and covering up for years, so safe to say the litigation holds were incredibly clear to Facebook and its directors. /5
In fact, the motion states they were communicated only a few months later. /6
The bullets of what allegedly Sandberg used the other email account to communicate on are mind blowing. This is investigations that created personal legal risk to the leadership and potentially could bring down the entire company for a massive cover-up. /7
More here. /8
Here is what I said before this sanctions motion unsealed. Worth noting @BarbMcQuade flagged the SCOTUS matter of interest on her pod this morning. I’m not sure she’s aware of the massive Kavanaugh conflict or the cover-up specifics but the case still caught her attention. /9
wow. NdCal just denied Facebook's attempt to dismiss securities suit for Cambridge Analytica cover-up. Court says plaintiffs credibly alleged Zuckerberg and Sandberg knew it "possessed over 40mil user profiles" way earlier. 4th amended complaint added/redacted cited evidence. /1
Count I, II and III now proceed, all alleged (civil) violations of 1934 SEC Act including over $5B in stock sales by Zuckerberg. This is the case Facebook already took up to SCOTUS to be denied cert. In DE, they settled similar case as director Andreessen was set to testify. /2
In this case, the executive defendants are Zuckerberg, Sandberg and CFO Wehner. What is interesting is it's added new evidence squeezed out more recently in courts including Court sanctions against Sandberg for deleting "relevant emails" over a pseudonymous gmail account. /3
Big. A major new law & tech paper takes on the economics of behavioral advertising - the kind that tracks users across multiple businesses and contexts, not just on sites they choose to visit.
It challenges industry’s favorite claim: that tracking is a “win-win” for everyone. /1
Bear with my thread. You may know I've been sharing Google and Meta monopoly abuse concerns for nearly a decade (courts now ruling). That said, I've always said ubiquitous data collection across the web (mostly NOT on the duopoly's own services!) is what fuels their dominance. /2
At the heart of the debate is this Figure 1 - and two very different ways to frame it.
Framing #1 (the industry narrative): Data aka 'signal' -> Better targeting -> More relevant ads -> More revenue -> Free content -> Everyone wins!
Simple. Elegant. But entirely misleading. /3
The 8hr video of Jack Smith’s testimony was released by Congress on New Years’ Eve in between Epstein and Venezuela. It’s an extraordinary display of Smith’s integrity and attention to justice and fairness on 1/6. Allison Gill deserves praise for curating the key clips. 1/4
Smith clearly represents all who worked towards justice and public interest, expressing his confidence and rationale he had the evidence to prove Jan 6th case to a jury. He also shows his gratitude to those retaliated against - in just doing their jobs. This stood out to me. 2/4
I must say I’m impressed by Covington & Burling law firm who has stood strong during this retaliation. This is just 1/6 - they’ve worked with Smith to be cautious to not discuss any confidential details in his classified docs report still sealed by Judge Cannon. (1.3x to fit) 3/4
So many mind blowing sentences in this just incredible Wall Street Journal report. Starting here, “Witkoff, who hasn’t traveled to Ukraine this year, is set to visit Russia for the sixth time next week and will again meet Putin. He insisted he isn’t playing favorites.” /1
“Inside were details of the commercial and
economic plans the Trump administration had been pursuing with Russia, including jointly mining rare earths in the Arctic.” /2
“European official asked Witkoff to start speaking with allies over the secure fixed line Europe's heads of state use to conduct sensitive
diplomatic conversations. Witkoff demurred, as he traveled too much to use the cumbersome system.” /3
Saturday’s “No Kings” protests have filled front pages across America with impactful visuals and headlines of peaceful protests. Many included the eye popping NYC Times Square shot. Here in the Dothan Eagle (Alabama). But everyone turned out. See Montana in its Missoulian. /1
Plenty of big city energy from St. Louis, Missouri to Chicago, Illinois. /2
Midwest with Cleveland, Ohio to Pittsburgh, Pennsylvania. /3
US v Google remedies: Nothing groundbreaking from return of DOJ’s star economist this morning. Court tested if his concerns over solely behavioral remedies assume distrust in Google (won’t follow court orders). I don’t think it mattered relative to where we were last night... /1
Yes, some will read as leaning against structural-remedy interest. I took it simply her clarifying she doesn’t need to lean on distrust if structural is shown tech feasible. Although witness pointed out distrust harms competition investment levels. /2
Court also very much nodded head when witness Lee explained why he didn’t do “but for” analysis to a dollar amount. Mehta also determined in search it was infeasible and unnecessary so cross that out of Google’s defense imho. /3