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Washington AG: Facebook Lied in Lawsuit Testimony
Washington AG: Facebook Lied in Lawsuit Testimony
7 STATE OF WASHINGTON
KING COUNTY SUPERIOR COURT
8
STATE OF WASHINGTON, NO. 20-2-07774-7 SEA
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Plaintiff, PLAINTIFF STATE OF
10 WASHINGTON’S MOTION FOR
v. LEAVE TO AMEND COMPLAINT
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FACEBOOK, INC.,
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Defendant.
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14 I. INTRODUCTION
15 For nearly 50 years, Washington laws have required commercial advertisers to allow the
17 Inc. (Facebook) is a commercial advertiser, yet it views itself above this law. Even after a
18 previous lawsuit and the original complaint in this case, it still refuses to provide the public
20 The State detailed in its original complaint two unfulfilled inspection requests made by
21 members of the public to Facebook in 2019. During discovery, the State asked Facebook whether
22 it had received any other requests. Facebook testified that it had not. Both Facebook and its
23 counsel were aware that testimony was false. In fact, by then Facebook’s counsel had engaged
24 in numerous, direct communications with Zach Wurtz (Wurtz), a professional who performs
25 research and tracking services for political committees and candidates and who has made at least
2 prevented the State from learning about the additional undisclosed violations concerning Wurtz
5 process in early 2020 for handling inspection requests made under Washington’s law.
6 Facebook’s process requires requestors to complete a form that limits and places conditions on
8 The State now seeks leave of the Court to amend its complaint to include the additional
9 violations the State discovered. In particular, the amended complaint adds allegations regarding
10 the unfulfilled requests by Wurtz, his communications with Facebook’s lawyers about the
11 requests, and recent additional violations involving one of the requestors who triggered the
12 State’s original complaint (Eli Sanders). The amended complaint also discusses Facebook’s
13 decision to implement a process that improperly conditions its response on the completion of a
14 form that asks for information that is inconsistent with Washington law.
15 The Court should grant leave under CR 15. The State’s proposed additional claims as to
16 Wurtz and Sanders involve the same violations as those contained in the original complaint, so
17 judicial economy is promoted by including those claims in this case, rather than in a separate
18 lawsuit. Facebook cannot claim undue prejudice, where Facebook has long been aware of
19 Wurtz’s unfulfilled inspection requests as well as the company’s decision to implement a process
20 that improperly conditions its response on the completion of a form that asks for information
21 that is inconsistent with Washington law. Although it was aware, Facebook improperly failed to
22 disclose that information during discovery. If it had done so, the State’s motion to amend would
23 have been made some time ago. While leave may require a delay in the case schedule to allow
24 the State to conduct reasonable discovery on its new claims, such delay is solely the result of
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2 II. FACTS
3 A. State’s Claims Against Facebook for Its Violations of RCW 42.17A.345 and
WAC 390-18-050
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The State filed its initial complaint on April 14, 2020. See Compl. (filed Apr. 14, 2020).
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In its complaint, the State alleged that Facebook, a commercial advertiser as defined by RCW
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42.17.005(10), had “repeatedly and openly” violated RCW 42.17.345 and WAC 390-18-050 by
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failing to maintain and make available for public inspection books of accounts and related
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materials specifying the required information for political advertisements that Facebook
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accepted or provided for elections campaigns in Washington since November 30, 2018. Compl.
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at 1. The State’s complaint identified two separate requests for such public inspection Facebook
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received in 2019—one by Eli Sanders and another by Tallman Trask—that Facebook failed to
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timely and fully respond to in accordance with the requirements of RCW 42.17A.345 and WAC
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390-18-050. Id. at 10-11. Both Sanders and Trask filed complaints with the Public Disclosure
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Commission (PDC) that were referred to the AGO for possible legal action. Id. at 11. In addition
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to Facebook’s deficient responses to these two specific requests, the State asserted that Facebook
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further violated Washington’s law by failing to maintain for public inspection documents and
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books of account with statutorily required information for each political advertisement or
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electioneering communication for Washington State election campaigns that Facebook accepted
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or provided after November 30, 2018. Id. at 15.
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B. Facebook Failed to Disclose Relevant Information About Additional Violations of
21 RCW 42.17A.345 and WAC 390-18-050 During Discovery
22 On September 1, 2020, the State served Facebook with Requests for Production (RFP).
23 Declaration of Todd Sipe (Sipe Decl.) ¶ 3. The State’s RFP No. 11 sought “all communications
24 relating to the Facebook Ad Library or Ad Archive, and the commercial advertiser and inspection
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1
In accordance with CR 15(a), a redlined copy of the State’s proposed Amended Complaint is attached as
26 Exhibit A to this motion.
2 provided the State with written communications he had with Facebook or its attorneys that fall
3 within the scope of those covered by RFP No. 11, Facebook did not produce those
4 communications. Id. ¶ 4. If Facebook or its attorneys had done so, the State may have learned of
6 On March 29, 2021, the State served Facebook with a Notice of Deposition Pursuant to
7 CR 30(b)(6). Id. ¶ 6. The Notice required Facebook to identify a witness to testify on behalf of
8 Facebook on “Facebook’s efforts to comply with RCW 42.17A.345 and WAC 390-18-050 for
9 political advertising . . . that appeared on Facebook from December 1, 2018 through April 13,
10 2020, including Facebook’s policies, practices and procedures during the time period for
11 responding to any requests or potential requests from members of the public for information
12 identified in RCW 42[.]17A.345 and/or WAC 390-18-050 for those advertisements and
13 communications.” Id. ¶ 7.
15 (Frank Antzoulis) the State asked the designee to identify any other instances (other than those
16 involving Eli Sanders or Tallman Trask) in which individuals requested information about
17 Washington political ads posted on Facebook. Id. ¶ 8. The State clarified that the designee was
18 responsible to answer on behalf of Facebook. Id. The designee answered that there were no other
20 attorney did not object to this line of questioning. Id. Facebook exercised its right to provide
21 corrections to the transcript, but it did not correct the transcript on this issue. Id. ¶ 10.
22 The State has since learned that Facebook’s designee’s testimony was false. In particular,
23 Facebook’s designee failed to disclose that Wurtz had in fact made numerous unfulfilled requests
24 to Facebook starting in 2019 and continuing into 2021 for information about Washington
25 political advertisements appearing on Facebook. Id. ¶ 11; see also Declaration of Zach Wurtz
26 (Wurtz Decl.) at ¶¶ 15, 30. Furthermore, Facebook counsel were personally aware of these
2 as detailed below, most, if not all, of Wurtz’s requests fell squarely within the topic set forth in
3 the State’s 30(b)(6) deposition notice because it sought information on Washington political
4 advertisements that appeared on Facebook between December 1, 2018 and April 13, 2020.
5 Id. ¶¶ 15, 31, 34, 38, 40, 44, 47, 49, 54, 59, 63.
7 September 2020 written discovery or during the May 2021 deposition of Facebook’s
8 representative, the State’s attorneys have only recently learned of those requests from media
3 Facebook political advertisements sponsored in the 2019 Seattle City Council races. Id. ¶ 26.
4 The business records were incomplete, as they did not include the name or address of the ads’
5 sponsors, and information related to location targeting had been redacted. Further, the records
7 Following his October 16, 2019 request, during 2020 and 2021 Wurtz made eight
8 additional requests to inspect Facebook’s books of account for political advertising and
9 electioneering communications that the company accepted or provided in the prior five years.
10 Wurtz made the requests in his own name or on behalf of his business on October 19, 2020;
11 October 30, 2020; November 20, 2020; November 24, 2020; December 31, 2020; January 4,
12 2021; March 1, 2021; and July 19, 2021. Id. ¶¶ 31, 38, 40, 44, 47, 54, 59, 63. On at least nine
13 separate occasions from October 19, 2020 to July 19, 2021, attorneys representing Facebook in
14 this case contacted Wurtz and provided him with a form entitled “Washington Resident Request
15 Form” to complete in order to process his requests. Id. ¶¶ 32, 35, 41, 45, 48, 50, 56, 60, 64. One
16 of Facebook’s attorneys wrote Wurtz in connection with his October 19, 2019 request that “[i]n
17 order for us to process your request, you must first complete the attached form, including
18 providing us with your true name (not an alias), confirming that you are a Washington resident,
19 and providing the URLs for the Facebook ads about which you are seeking information.”
20 Id. ¶ 35. Wurtz received similar demands from Facebook attorneys to complete the Washington
21 Resident Request Form as a condition for Facebook to process other requests he made. Id. ¶¶ 32,
23 The Washington Resident Request Form Facebook required Wurtz to complete placed
24 terms and limitations on his inspection requests that are contrary to the requirements of
25 RCW 42.17A.345 and WAC 390-18-050. For example, the form requires requestors to certify
26 that they are Washington State residents and to identify the URL (Universal Resource Locator
2 included in his request. Id. ¶ 33. Nothing in RCW 42.17A.345 nor WAC 390-18-050 limits
4 those who can identify the URLs for the sponsors of the Washington political advertisements.
5 The Washington Resident Request Form also limits inspection requests to Washington
6 political advertisements spanning a single year and none before January 1, 2019. Id. However,
8 required information about Washington political advertisement available for public inspection
9 for a period of no less than five years after the applicable election.
10 Facebook failed to make all of the required information available to Wurtz to inspect for
11 all of his eight additional requests made under RCW 42.17A.345 and WAC 390-18-050.
12 Id. ¶¶ 37, 43, 46, 52, 58, 62, 66. Even when Mr. Wurtz attempted to provide information
13 requested on Facebook’s Washington Resident Request Form, Facebook still failed to provide
14 him with the information he was seeking about the Washington political advertisements that had
16 On August 20, 2021, counsel for the State submitted to the PDC a complaint against
17 Facebook alleging that Facebook had violated RCW 42.17A.345 and WAC 390-18-050 by
18 failing to timely comply with Wurtz’s numerous inspection requests for information on
20 complete as a condition to processing his requests, a form that contravenes Washington law.
22 D. Facebook Has Also Recently Violated RCW 42.17A.345 and WAC 390-18-050 as to
Eli Sanders
23
In July 2021, Sanders made a new request to Facebook under RCW 42.17A.345 and
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WAC 390-18-050 to inspect its books of account and information relating to Washington
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political advertisements that appeared on Facebook in 2021. Sipe Decl. ¶ 14. According to
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2 Request Form to complete. Id. ¶ 15. Moreover, Facebook once again failed to timely and fully
3 respond to Sanders’ request. Id. ¶ 16. For example, Facebook redacted the location targeting
4 information for the advertisements even though targeting information is one of the pieces of
5 information that Washington law expressly requires commercial advertisers to make available
6 for inspection. Id. ¶ 17. Further, the documents Facebook provided to Sanders do not reflect
7 every Washington political advertisement that appeared on Facebook during the period covered
8 by Sanders’ request. Id. ¶ 18. Based on this conduct, Sanders filed two PDC complaints against
9 Facebook on August 10, 2021, for violations of RCW 42.17A.345 and WAC 390-18-050. Id.
10 ¶ 19.
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2 The State relies on the declarations of Zach Wurtz and S. Todd Sipe, and their respective
4 VI. ARGUMENT
5 A. Legal Standard
6 Under CR 15(a), a party may amend its pleading with leave of court, which shall be
7 “freely given when justice so requires.” CR 15(a). This rule is intended to “facilitate a proper
8 decision on the merits” and provide parties with adequate notice of the basis for claims and
9 defenses asserted against them. Herron v. Trib. Publ’g Co., Inc., 108 Wn.2d 162, 165, 736 P.2d
10 249 (1987) (quoting Caruso v. Loc. Union No. 690 of Int’l Brotherhood of Teamsters,
11 Chauffeurs, Warehousemen & Helpers of Am., 100 Wn.2d 343, 349, 670 P.2d 240 (1983)). In
12 the absence of actual prejudice, delay in seeking leave to amend a pleading is not grounds to
13 deny an amendment. See Caruso, 100 Wn.2d at 349 (delay of over five years does not justify
15 undue delay where the defendant has withheld evidence underlying plaintiff’s claims.
16 See Univ. of Wash. v. Gov’t Emps. Ins. Co. (GEICO), 200 Wn. App. 455, 466, 404 P.3d 559
17 (2017) (leave to amend did not prejudice the defendant who withheld evidence underlying the
19 Here, the State has clearly met the standard for leave to amend its complaint. The motion
23 violations of RCW 42.17A.345 and WAC 390-18-050 as set forth in the State’s original
24 complaint even after the State’s case was filed. The State’s proposed new claims arise out
25 Facebook’s violations relating to Wurtz’s multiple unfulfilled inspection requests and Sanders’
26 unfulfilled recent request, both of which are covered by the PDC’s most recent referral to the
2 would then need to initiate a separate lawsuit against Facebook to adjudicate Facebook’s
3 violations of the same law. As such, granting the State’s motion promotes judicial economy by
5 C. Facebook Will Not Be Unduly Prejudiced by Allowing the State to Amend Its
Complaint
6
In addition, Facebook will not be unduly prejudiced by granting the State leave to file its
7
amended complaint. In considering whether a defendant will be unduly prejudiced in this
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context, courts consider potential delay, unfair surprise, or the introduction of remote issues.
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Kirkham v. Smith, 106 Wn. App. 177, 181, 23 P.3d 10 (2001). None of those concerns apply
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here. There is no unfair surprise or introduction of remote issues connected with the State’s
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motion, and any delay that may result was brought about by Facebook’s own conduct.
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As noted above, the State’s additional proposed claims against Facebook pertain to its
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continuation of the very same unlawful conduct that gave rise to State’s original complaint. In
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particular, the State has obtained new evidence that shows Facebook has continued to willfully
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violate RCW 42.17A.345 and WAC 390-18-050 in response to inspection requests and that
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Facebook has continued to fail to maintain the statutorily required information for Washington
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political advertisements or electioneering communications that it has accepted or provided for
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Washington state election campaigns and to make such information open for public inspection.
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Moreover, Facebook has willfully compounded its violations by implementing a formalized
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process for responding to requests made under Washington’s law by requiring requestors to
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complete a form that on its face contravenes the express requirements of Washington law.
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There is no unfair surprise here. Facebook is (and has been) aware that Wurtz and Sanders
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have made the same types of requests to inspect information regarding Washington political
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advertisements under RCW 42.17A.345 and WAC 390-18-050 that are the basis for the State’s
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original complaint. Facebook is (and has been) aware that they failed to timely and fully respond
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2 identified therein from 2019. Finally, Facebook is (and has been) aware that it has chosen to
3 implement a formalized process for responding to inspection requests it has received after the
5 These facts have been known to Facebook and its attorneys who had direct
6 communications with Wurtz and Sanders about their inspection requests. Under these
7 circumstances, Facebook cannot reasonably claim surprise or confusion concerning the State’s
8 additional claims in its proposed amended complaint nor can it reasonably assert that the State’s
10 Facebook also cannot reasonably complain about any delay in the case schedule that may
11 result in granting the State leave to amend its complaint. The State has acted promptly in seeking
12 leave to amend the complaint once its attorneys learned of facts evidencing Facebook’s
13 continuing violations of Washington law. As noted, this information would have been discovered
14 earlier if Facebook had properly and timely disclosed Wurtz’s numerous requests (including one
15 that pre-dates the filing of the State’s original complaint) in response to the State’s discovery
16 requests and the deposition of Facebook’s designated CR 30(b)(6) agent. GEICO, 200 Wn. App.
17 at 466-67 (where a claim relied on similar evidence and the motion was delayed due to the non-
18 moving party’s own actions withholding evidence underlying the additional claim, defendants
20 Because granting the State’s motion for leave to amend its complaint promotes judicial
21 economy by avoiding duplicative lawsuits involving the same claims and the same parties and
22 because Facebook would not be unduly prejudice, the Court should grant the State’s motion for
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2 I hereby declare that on this day I caused the foregoing document to be served,
4 Rob McKenna
Amanda Mariam McDowell
5 Aaron P. Brecher
Orrick Herrington & Sutcliffe LLP
6 rmckenna@orrick.com
amcdowell@orrick.com
7 abrecher@orrick.com
mburleigh@orrick.com
8 lpeterson@orrick.com
9 Erin E. Murphy
K. Winn Allen
10 Katherine E. Canning
Julie Siegal
11 James Xi
Kari Noborikawa
12 Elizabeth Hedges
Ashley E. Littlefield
13 Kirkland & Ellis LLP
erin.murphy@kirkland.com
14 winn.allen@kirkland.com
katherine.canning@kirkland.com
15 julie.siegal@kirkland.com
james.xi@kirkland.com
16 kari.noborikawa@kirkland.com
elizabeth.hedges@kirkland.com
17 ashley.littlefield@kirkland.com
18 Attorneys for Defendant Facebook, Inc.
19 I declare under penalty of perjury under the laws of the State of Washington that the
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