Category Archives: lawsuit

Shareholder suit alleges Google covered up its sexual harassment problems with big payouts

Months after an earth-shattering New York Times investigation exposed Google parent company Alphabet’s $90 million payout to Android co-founder Andy Rubin, despite the accusations of sexual misconduct made against him, a Google shareholder is suing the company.

James Martin filed suit in the San Mateo Superior Court Thursday morning, alleging the company’s leaders deployed massive allowances to poor-behaving executives to cover up harassment scandals. Both Rubin and Google’s former head of search Amit Singhal, who peacefully left the company in 2016 amid harassment allegations that weren’t made public until the following year, are listed as defendants in the court filing. This is because the plaintiff is seeking a full return of the massive payouts awarded to the embattled former execs.

With charges including breach of fiduciary duty, unjust enrichment, abuse of power and corporate waste, per The Washington Post, the lawsuit asks for an end of nondisclosure and arbitration agreements at Google, which ensure workplace disputes are settled behind closed doors and without any right to an appeal. Martin is also requesting Google incorporate three new directors to the Alphabet board and put an end to supervoting shares, which gives certain shareholders more voting control.

The lawsuit also targets Rubin, Google co-founders Larry Page and Sergey Brin, chief executive officer Sundar Pichai and executive chairman Eric Schmidt. Former human resources director Laszlo Bock, chief legal officer David Drummond and former executive Amit Singhal are also named, as are long-time venture capitalists and Google board members John Doerr and Ram Shriram.

Google didn’t immediately respond to a request for comment.

Following the release of the NYT report, Googlers across the world rallied to protest the company’s handling of sexual misconduct allegations. The protestors had five key asks, including an end to forced arbitration in cases of harassment and discrimination, a commitment to end pay and opportunity inequity and a clear, uniform, globally inclusive process for reporting sexual misconduct safely and anonymously. Google ultimately complied with employees and put an end to forced arbitration; other tech companies, such as Airbnb, followed suit.

Washington sues Facebook and Google over failure to disclose political ad spending

Facebook and Google were paid millions for political advertising purposes in Washington but failed for years to publish related information — such as the advertiser’s address — as required by state law, alleges a lawsuit by the state’s attorney general.

Washington law requires that “political campaign and lobbying contributions and expenditures be fully disclosed to the public and that secrecy is to be avoided.”

Specifically, “documents and books of account” must be made available for public inspection during the campaign and for three years following; these must detail the candidate, name of advertiser, address, cost and method of payment, and description services rendered.

Bob Ferguson, Washington’s attorney general, filed a lawsuit yesterday alleging that both Facebook and Google “failed to obtain and maintain” this information. Earlier this year, Eli Sanders of Seattle’s esteemed biweekly paper The Stranger requested to view the “books of account” from both companies, and another person followed up with an in-person visit; both received unsatisfactory results.

They alerted the AG’s office to these investigations in mid-April, and here we are a month and a half later with a pair of remarkably concise lawsuits. (This appears to be separate from the Seattle Election Commission’s allegations of similar failings by Facebook in February.)

All told Facebook took in about $3.4 million over the last decade, including “$2.5 million paid through political consultants and other agents or intermediaries, and $619,861 paid directly to Facebook.” Google received about $1.5 million over the same period, almost none of which was paid directly to the company. (I’ve asked the AG’s office for more information on how these amounts are defined.)

The total yearly amounts listed in the lawsuits may be interesting to anyone curious about the scale of political payments to online platforms at the state scale, so I’m reproducing them here.

Facebook

  • 2013: $129,099
  • 2014: $310,165
  • 2015: $147,689
  • 2016: $1,153,688
  • 2017: $857,893

Google

  • 2013: $47,431
  • 2014: $72,803
  • 2015: $56,639
  • 2016: $310,175
  • 2017: $295,473

(Note that these don’t add up to the totals mentioned above; these are the numbers filed with the state’s Public Disclosure Committee. 2018 amounts are listed but are necessarily incomplete, so I omitted them.)

At least some of the many payments making up these results are not properly documented, and from the looks of it, this could amount to willful negligence. If a company is operating in a state and taking millions for political ads, it really can’t be unaware of that state’s disclosure laws. Yet according to the lawsuits, even basic data like names and addresses of advertisers and the amounts paid were not collected systematically, let alone made available publicly.

It’s impossible to characterize flouting the law in such a way as an innocent mistake, and certainly not when the mistake is repeated year after year. This isn’t an academic question: if the companies are found to have intentionally violated the law, the lawsuit asks that damages be tripled (technically, “trebled.”)

Neither company addressed the claims of the lawsuit directly when contacted for comment.

Facebook said in a statement that “Attorney General Ferguson has raised important questions and we look forward to resolving this matter with his office quickly.” The company also noted that it has taken several steps to improve transparency in political spending, such as its planned political ad archive and an API for requesting this type of data.

Google said only that it is “currently reviewing the complaint and will be engaging with the Attorney General’s office” and asserted that it is “committed” to transparency and disclosure, although evidently not in the manner Washington requires.

The case likely will not result in significant monetary penalties for the companies in question; even if fines and damages totaled tens of millions it would be a drop in the bucket for the tech giants. But deliberately skirting laws governing political spending and public disclosure is rather a bad look for companies under especial scrutiny for systematic dishonesty — primarily Facebook.

If the AG’s suit goes forward and the companies are found to have intentionally avoided doing what the law required, they (and others like them) would be under serious pressure to do so in the future, not just in Washington, but in other states where similar negligence may have taken place. AG Ferguson seems clearly to want to set a precedent and perhaps inspire others to take action.

I’ve asked the AG’s office for some clarifications and additional info, and will update this post if I hear back.

Mighty Is A Funding Platform For Personal Injury Lawsuits

founding-group As anyone who has ever been in court knows, lawsuits are often a long, tedious process. This is especially true with lengthy personal injury litigation, during which the injured party is often unable to produce income. Powerful defendants commonly take advantage of this, offering lowball settlements in hopes that the plaintiff will settle out of necessity for a quick payout. The result is… Read More

Amazon Files Suit Against Individuals Offering Fake Product Reviews On Fiverr.com

amazon-angled In April of this year, Amazon filed suit against the operators of websites that offered Amazon sellers the ability to purchase fake, four and five-star reviews of their products. Most of those websites have now been closed, and Amazon took action against the sellers involved. Now Amazon is continuing its crackdown on fake reviews by going after individuals who provide these sort of fake… Read More

Class Action Lawsuit Accuses Twitter Of ‘Listening In’ On Your Direct Messages

3297533849_a32573b118_b The Hollywood Reporter has reported that Twitter is the target of a class action lawsuit having to do with how private direct messages are treated on the service. While it’s quite obvious that there aren’t humans that work at Twitter reading your direct messages, an algorithm is sweeping over them, to swap out links with shortened T.co (the shortening service owned by Twitter) ones… Read More

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