Posts with «company legal & law matters» label

Rohingya refugees sue Facebook for $150 billion over Myanmar genocide

Facebook has been repeatedly accused of enabling Myanmar's genocide against the country's Rohingya minority, and now it will deal with those accusations in court. A Rohingya woman has filed a class-action lawsuit on behalf of refugees against Facebook parent company Meta, alleging the company both amplified anti-Rohingya hate speech through its algorithms and failed to remove content fostering violence. The refugees ask for over $150 billion in damages.

The plaintiffs argued that Facebook only took meaningful action against pro-genocide factions after it was pushed. The Myanmar military launched its purge of Rohingya in 2017, with officials and nationalist monks spreading slurs and misinformation on Facebook to either justify or cover up atrocities. Facebook only started cracking down in August 2018 following a UN report linking unchecked behavior on the social network to real-world violence. The company requested an independent audit at the same time that reached a similar conclusion. This was too little too late, according to the refugees — the company admitted it "should and could have done more" only after mass displacements and deaths.

Meta has already declined to comment on the lawsuit. A similar complaint is expected in the UK in 2022.

The firm was quick to clamp down on the Myanmar military following its February 2021 coup, and went so far as to pull the military's main page. However, that swifter response won't help much with a lawsuit over past actions. While it's too soon to say whether or not the lawsuit will succeed, let alone obtain the hoped-for damages, the company may have a difficult time defending itself.

Match will pay Tinder founders $441 million to settle lawsuit over financial deception

Tinder's founders just won a partial victory in their lawsuit against Match Group over alleged financial trickery. Match has agreed to settle the case by paying $441 million from its cash reserves. In return, the Tinder co-creators will dismiss the claims from both the lawsuit and linked arbitration.

The court battle began in 2018, when the plaintiffs accused Tinder's parent organizations Match and IAC of manipulating financial data (including a secret merger with Match) to artificially lower Tinder's valuation and illegally deny stock options to workers. The plaintiffs also alleged that interim Tinder chief Greg Blatt sexually harassed marketing VP and co-founder Rosette Pambakian in 2016. Tinder fired the employees in response to their lawsuit, and Pambakian separately sued Tinder over the assault claims. 

We've asked Match for comment. Tinder said it couldn't comment beyond a joint statement in an SEC filing where both companies said they were "pleased" to have settled the case.

This isn't quite the decisive blow Tinder wanted. The company originally demanded "billions of dollars" in damages (around $2 billion, to be more exact) for the claimed Match and IAC manipulation — it's getting a fraction of that payout after three years. While Match is still on the hook, it's not taking long-lasting damage as a result.

Three Google workers sue over alleged violations of 'don't be evil' motto

Google's classic "don't be evil" mantra may have been more of a philosophical statement than a practical guideline, but former staff members now want to hold the company accountable for it. NPR and The Verge say ex-engineers Paul Duke, Rebecca Rivers and Sophie Waldman have sued Google for allegedly violating the "don't be evil" segment of the company's code of conduct. They claim Google fired them for organizing worker opposition to controversial projects, like working with the Trump-era Customs and Border Protection. They were supposedly punished for pointing out evil like Google as instructed, in other words.

The one-time employees claimed Google rejected the famous phrase as it was both expensive and leading workers to organize. The internet firm supposedly decided it was better to fire people than admit its approach had changed and give up the "accompanying benefits" that came with its well-known motto.

There are concerns the lawsuit is too vague. What defines evil, exactly? However, plaintiff lawyer Laurie Burgess argued "don't be evil" was specific enough that it could be enforceable. The saying "must have meaning" if it was in the company code and thus binding, Burgess said.

We've asked Google for comment. It has previously accused all of the workers (plus Laurence Berland) of repeatedly violating data security policies by obtaining or sharing confidential data, but the workers and other critics have said this was just a cover for retaliatory action.

The lawsuit won't necessarily lead to stiff penalties. Google settled with Berland over his departure, for instance. There's a lot of pressure on Google to avoid a drawn-out legal battle when the National Labor Relations Board is still investigating the other firings. Still, this could be an important case — even if there is a settlement, it might open the door to other complaints about the company's ethical standards.

Clearview AI fined £17 million for breaching UK data protection laws

The UK's Information Commissioner's Office (ICO) has provisionally fined the facial recognition company Clearview AI £17 million ($22.6 million) for breaching UK data protection laws. It said that Clearview allegedly failed to inform citizens that it was collecting billions of their photos, among other transgressions. It has also (again, provisionally) ordered it to stop further processing of residents' personal data.

The regulator said that Clearview apparently failed to process people's data "in a way that they likely expect or that is fair." It also alleged that the company failed to have a lawful reason to collect the data, didn't meet GDPR standards for biometric data, failed to have a process that prevents data from being retained indefinitely and failed to inform UK residents what was happening to their data.

The ICO noted that Clearview's services were used on a free trial basis by a number of UK law enforcement agencies, "but that this trial was discontinued and Clearview AI Inc’s services are no longer being offered in the UK."

The images in Clearview AI Inc’s database are likely to include the data of a substantial number of people from the UK and may have been gathered without people’s knowledge from publicly available information online, including social media platforms.

The UK and Australia opened up a joint investigation of Clearview AI last year. Regulators were concerned with Clearview's practice of scraping data and gathering photos from social media site like Facebook. It sells that data to law enforcement agencies, purportedly allowing them to identify criminals or victims. However, the company's business practices have raised numerous privacy concerns

Clearview AI said it was considering an appeal, according to The New York Times. "[Clearview only] provides publicly available information from the internet to law enforcement agencies," said company lawyer Kelly Hagedorn in a statement. "My company and I have acted in the best interests of the UK and their people by assisting law enforcement in solving heinous crimes against children, seniors and other victims of unscrupulous acts," added Clearview AI chief executive Hoan Ton-That in a separate statement.

Earlier this month, Australia's regular issued a similar ruling, saying Clearview AI breached the privacy of residents by scraping their biometric information. The country's regulator, the OAIC, ordered Clearview to "cease collecting facial images and biometric templates from individuals in Australia and destroy all facial images and biometric templates collected."  

In the US, the ACLU recently sued Clearview for violating Illinois state laws. Twitter, Google and YouTube have all sent cease-and-desist letters to the company, alleging that it violates their terms of service. Facebook has also demanded that Clearview stop scraping its data. 

The fine would be the first Clearview has faced, the company told the NYT. It can still contest the ruling with the Commissioner, so the fine and enforcement "may be subject to change," the ICO wrote. The ICO expects to make a final decision by mid-2022.

'Roblox' sues long-banned user for allegedly terrorizing the platform

Roblox is suing a person it banned years ago for allegedly terrorizing the gaming platform and its community of developers. The Roblox Corporation wants Benjamin Robert Simon to stop his alleged harassment of employees and users on Roblox and elsewhere, and to pay $1.65 million in damages.

In the filing, which was first reported by Polygon, the company claims Simon, an alleged "cybermob" leader, “commits and encourages unlawful acts designed to injure Roblox and its users.” Roblox banned him years ago, allegedly for using homophobic and racist slurs, harassing others and sexual harassment. Simon is said to use accounts created by others and hacks to maintain access to the platform.

The suit contains several examples of purported misconduct on Simon's part. Among them is an allegation that he posted "false and misleading terrorist threats" last month that led to a temporary shutdown of the Roblox Developers Conference in San Francisco. Roblox claims it cost $50,000 to investigate the threat and secure the venue.

In addition, Simon is accused of "glamorizing the April 3, 2018 active shooter and murder at YouTube headquarters in San Bruno, California and threatening/taunting a copycat act of terrorism at Roblox headquarters in nearby San Mateo, California." Roblox also claims he tried to upload a mostly nude photo of himself and images of Adolf Hitler, and attempted to upload a sex game to the platform.

Simon, a popular YouTuber known as Ruben Sim, allegedly profited from videos of stunts that were uploaded to that platform and Patreon. The Roblox Corporation is suing him for, among other things, breach of contract, fraud and allegedly violating both the Computer Fraud and Abuse Act and the California Comprehensive Computer Data Access and Fraud Act.

Roblox has tens of millions of daily users, many of whom are kids. Keeping trolls as far away as possible from the platform is important to help protect the platform's young audience. The lawsuit follows an outage that knocked Roblox offline for three days.

Pinterest will no longer force former employees to keep quiet about discrimination cases

Pinterest will no longer enforce former employees' nondisclosure agreements when it comes to cases of racial and gender-based discrimination, according to NBC News. That's part of the terms the company has agreed to in order to settle the lawsuit filed by its shareholder, the Employees' Retirement System of Rhode Island, for allegedly enabling a culture of discrimination. In addition, it has committed $50 million towards increasing diversity and inclusion within the company.

The shareholder sued Pinterest after allegations made by former employees Ifeoma Ozoma and Aerica Shimizu Banks became public. In a series of tweets, Ozoma detailed how she fought for a year to be paid and treated fairly. She said Pinterest responded inadequately when one of her white male colleagues shared her name and phone number to racist/misogynistic parts of the internet. Her colleague reportedly doxxed her after she suggested adding a warning on content from Ben Shapiro, whom she'd described as a "white supremacist."

Meanwhile, Banks said her manager made disparaging comments about her ethnicity (she's Black and Japanese) in front of colleagues. Both Ozoma and Banks said they were paid less than their manager, a white man, despite having similar workloads. 

The Employees’ Retirement System of Rhode Island argued that by allowing those events to take place, executives perpetrated or knowingly ignored "the long-standing and systemic culture of discrimination and retaliation at Pinterest." Thus, they breached their fiduciary duty. Rhode Island General Treasurer Seth Magaziner said:

"We pushed for these sweeping reforms to support Pinterest's employees with a fair and safe workplace, and to strengthen the company's brand and performance by ensuring that the values of inclusiveness are made central to Pinterest's identity." 

As NBC News notes, the fact that Pinterest agreed to release employees from their NDAs reflects the work Ozoma has accomplished since she left the company. She co-sponsored the Silenced No More Act that will make it easier for workers to speak out about racism and harassment in the workplace even if they had previously signed NDAs. California Gov. Gavin Newsom signed it into law in October, and it will be enforced starting on January 1st. 

Ozoma and Banks aren't the only former employees who spoke out against Pinterest. Former COO Françoise Brougher also said that she was fired after she told CEO Ben Silbermann that she was being given gendered feedback and was being paid less than her male counterparts. She sued the company last year and settled for $22.5 million.

Amazon and Apple fined $228 million in Italy for unfairly restricting Beats sales

The Italian Competition Authority (AGCM) has fined Apple and Amazon a combined total of €203.2 million (US$228 million) after an antitrust investigation involving the reselling of Beats products. According to the watchdog, the two companies signed an agreement in 2018 that would prohibit both official and unofficial resellers of Apple and Apple-owned Beats products on Amazon's Italian website. That agreement allegedly contained contractual clauses that only allowed Amazon itself and select sellers "chosen individually and in a discriminatory way" to sell those items.

AGCM said in its announcement that those clauses violate article 101 of the Treaty on the Functioning of the European Union. In addition, the watchdog said the agreement restricted cross-border sales, ultimately limiting buyers' options and depriving them of the discounts typically offered by third-party sellers. The Italian authority opened the antitrust case against both companies in 2020 and even searched their offices in the country. 

A total of 70 percent of consumer electronics purchases in the country are from Amazon, AGCM explained, and 40 percent were purchases from sellers that use the website as their main platform. That's why it's essential for Amazon to implement Italy's competition rules and ensure a level playing field for all sellers, as well as to ensure that buyers have access to more options.

AGCM imposed a fine of €68.7 million (US$77 million) on Amazon and a fine of €134.5 million (US$151.2 million) on Apple. It also ordered the companies to end the restrictions and allow the sale of Apple and Beats products on Amazon Italy in "non-discriminatory manner." In a statement sent to Reuters, Amazon called the imposed penalty "disproportionate and unjustified." A spokesperson said in a statement:

"We reject the suggestion that Amazon benefits by excluding sellers from our store, since our business model relies on their success. As a result of the agreement, Italian customers can find the latest Apple and Beats products on our store, benefiting from a catalogue that more than doubled, with better deals and faster shipping."

Meanwhile, Apple denied any wrongdoing:

"To ensure our customers purchase genuine products, we work closely with our reseller partners and have dedicated teams of experts around the world who work with law enforcement, customs and merchants to ensure only genuine Apple products are being sold."

According to Reuters, both companies are planning to appeal the watchdog's penalty.

Tesla factory employee alleges 'rampant sexual harassment' in lawsuit

Female employees at Tesla’s Fremont factory in California face “rampant sexual harassment,” according to a lawsuit filed on Thursday. In a complaint with the state’s Superior Court in Alameda County, Jessica Barraza, a production associate with Tesla, said she was subjected to “nightmarish” working conditions over the past three years. Barraza’s lawsuit describes a factory floor that looks more like “a crude, archaic construction site or frat house” than the site of advanced EV production.

Barraza’s allegations against Tesla are numerous. In one incident, the suit alleges a male co-worker stuck his leg between her thighs when she went to punch in after a lunch break. Amid the harassment, Barraza says her complaints fell on deaf ears. In one instance, she says a supervisor did nothing when she complained of a co-worker staring at her breasts. “Maybe you shouldn’t wear shirts that draw attention to your chest,” her supervisor told her, according to the suit. Barraza told the man she was “wearing a work shirt provided by Tesla.”

“After almost three years of experiencing all the harassment, it robs your sense of security — it almost dehumanizes you,” Barraza said in an interview with The Washington Post, which was the first outlet to report on the suit. We’ve reached out to Tesla for comment. The company does not typically respond to media requests. 

The suit comes one month after Tesla was ordered by a federal court to pay $137 million to a Black employee who said they were subjected to daily racist abuse at its Fremont factory. “We continue to grow and improve in how we address employee concerns,” the company said at the time. “Occasionally, we’ll get it wrong, and when that happens we should be held accountable.” Tesla is appealing the award.

Tesla also isn’t the only EV-maker accused of fostering a toxic workplace for women. Just days before its IPO, Rivian was sued by Laura Schwab, one of its former executives. In her lawsuit, Schwab alleges the automaker fired her after she complained of a “toxic ‘bro culture’” that saw her excluded from meetings and more. “The culture at Rivian was actually the worst I’ve experienced in over 20 years in the automotive industry,” Schwab said at the time.

More than 800 Activision Blizzard employees call for CEO Bobby Kotick to resign

More than 800 Activision Blizzard employees and contractors have signed a petition calling for CEO Bobby Kotick to be removed as CEO. Workers walked out in protest earlier this week, following a report published by The Wall Street Journal, which alleged that Kotick knew about sexual misconduct claims at the company and neglected to inform the board of directors. The report also notes that Kotick has been accused of mistreating women on numerous occasions.

Today over 500 current ABK employees and contractors signed a petition calling for the removal of Bobby Kotick as our CEO https://t.co/QP9sOJ76bK

— ABetterABK 💙 ABK Workers Alliance (@ABetterABK) November 18, 2021

"We, the undersigned, no longer have confidence in the leadership of Bobby Kotick as the CEO of Activision Blizzard," the petition reads. "The information that has come to light about his behaviors and practices in the running of our companies runs counter to the culture and integrity we require of our leadership—and directly conflicts with the initiatives started by our peers."

The signees asked for Kotick to step down and for shareholders to choose a new CEO without his influence. The petition notes that Kotick "owns a substantial portion of the voting rights of the shareholders." When employee advocacy group A Better ABK shared the petition on Twitter, it said more than 500 workers had signed it. Hundreds more added their names within a couple of hours. 

Among the claims in the report are one that Kotick was the person who wrote an email sent to employees by executive vice president of corporate affairs Frances Townsend after California's Department of Fair Employment and Housing filed a sexual harassment and discrimination lawsuit against Activision Blizzard in July. "A recently filed lawsuit presented a distorted and untrue picture of our company, including factually incorrect, old and out of context stories — some from more than a decade ago," the memo read. Hundreds of Blizzard employees slammed the message and demanded "immediate corrections" from company leaders.

The report also shed some light on the departure of Jen Oneal, who was named as a co-lead of Blizzard in August but announced three months later that she was leaving her position. In a September email to the company's legal team, Oneal (who is Asian-American and gay) is said to have written that she had been "tokenized, marginalized, and discriminated against" and that she was paid less than Blizzard co-lead Mike Ybarra. IGN later reported that Ybarra and Oneal asked management for equal compensation, but Oneal said they were only offered equivalent offers after she tendered her resignation.

Following The Journal's report, the Activision Blizzard board publicly gave its backing to Kotick. However, the backlash is intensifying. Before the petition, Polygon and Eurogamer called for him to resign in editorials. A group of activist shareholders, who hold around 0.6 percent of stock and have long criticized Kotick, demanded that he step down.

On top of that, Sony Interactive Entertainment CEO Jim Ryan told his employees that he was “disheartened and frankly stunned to read” The Journal's report. “We outreached to Activision immediately after the article was published to express our deep concern and to ask how they plan to address the claims made in the article,” Ryan wrote in the email, which was leaked. “We do not believe their statements of response properly address the situation.”

This week's report and ensuing pressure on Kotick follows a torrid few months for leaders at Activision Blizzard. After DFEH filed its lawsuit, it emerged that the Securities and Exchange Commission is investigating the company. Activision Blizzard is also facing a class action lawsuit from shareholders, who claim it violated securities laws. In addition, workers and the Communication Workers of America filed an unfair labor practice complaint against the company. 

When asked for comment, Activision Blizzard directed Engadget to the statement the board of directors made on Tuesday. "The goals we have set for ourselves are both critical and ambitious," it said. "The Board remains confident in Bobby Kotick's leadership, commitment and ability to achieve these goals.”

Canadian police arrest teen for stealing $36.5 million in cryptocurrency

Police in Canada say they recently arrested a teen who allegedly stole $46 million CAD (approximately $36.5 million) worth of cryptocurrency from a single individual in the US. According to authorities in Hamilton, Ontario, a city about one hour west of Toronto, the incident is the largest-ever cryptocurrency theft involving one person.

The owner of the currency was the victim of a SIM swap attack. Their cellphone number was hijacked and used to intercept two-factor authentication requests, thereby allowing access to their protected accounts. Some of the stolen money was used to purchase a “rare” online gaming username, which eventually allowed the Hamilton Police Service, as well as FBI and US Secret Service Electronic Crimes Task Force, to identify the account holder. Police seized approximately $7 million CAD ($5.5 million) in stolen cryptocurrency when they arrested the teen.

2021 has been a banner year for crypto thefts. In June, investors in South Africa lost nearly $3.6 billion in Bitcoin when the founders of one of the country’s largest cryptocurrency exchanges disappeared. That same month, police in the UK seized approximately $158 million in various digital currencies. At the time, it was the largest seizure of its kind in the country’s history.