Federal Agency of News LLC v. Facebook, Inc.

CourtDistrict Court, N.D. California
DecidedJanuary 13, 2020
Docket5:18-cv-07041
StatusUnknown

This text of Federal Agency of News LLC v. Facebook, Inc. (Federal Agency of News LLC v. Facebook, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Agency of News LLC v. Facebook, Inc., (N.D. Cal. 2020).

Opinion

8 UNITED STATES DISTRICT COURT

9 NORTHERN DISTRICT OF CALIFORNIA 10 SAN JOSE DIVISION 11

12 FEDERAL AGENCY OF NEWS LLC, et Case No. 18-CV-07041-LHK al., 13 ORDER GRANTING MOTION TO Plaintiffs, DISMISS WITH PREJUDICE 14 v. Re: Dkt. No. 40 15 FACEBOOK, INC., 16 Defendant. 17 18 Plaintiffs Federal Agency of News LLC (“FAN”) and Evgeniy Zubarev (collectively, 19 “Plaintiffs”) bring suit against Defendant Facebook, Inc. (“Facebook”) because Facebook removed 20 FAN’s Facebook account and page. The Court previously granted Facebook’s motion to dismiss 21 without prejudice. ECF No. 33. Before the Court is Facebook’s second motion to dismiss. ECF 22 No. 40. Having considered the parties’ submissions, the relevant law, and the record in this case, 23 the Court GRANTS Facebook’s motion to dismiss with prejudice. 24 I. BACKGROUND 25 A. Factual Background 26 Plaintiff FAN is a “corporation organized and existing under the laws of the Russian 27 Federation” that “gathers, transmits and supplies domestic and international news reports and 1 other publications of public interest.” ECF No. 36 (“First Amended Complaint” or “FAC”) ¶¶ 2, 5. 2 Plaintiff Evgeniy Zubarev is “the sole shareholder and General Director of FAN.” Id. ¶ 6. 3 Defendant Facebook operates an online social media and social networking platform on which 4 users like FAN can disseminate content by publishing on the users’ Facebook page “posts and 5 other content for its Facebook followers.” Id. ¶¶ 3, 30. Facebook users’ utilization of Facebook is 6 governed by Facebook’s Terms of Service that, if violated, may result in the deletion of users’ 7 Facebook accounts and pages. Id. ¶¶ 4, 58, 91. 8 On or about December 2014, FAN started “a Facebook page through which FAN has 9 published its posts and other content for its Facebook followers.” Id. ¶ 3. After the 2016 United 10 States presidential election, “Facebook began to shut down ‘inauthentic’ Facebook accounts that 11 allegedly sought to inflame social and political tensions in the United States.” Id. ¶ 10. Facebook 12 allegedly shut down such accounts because the accounts’ activities were “similar to or connected 13 to that of Russian Facebook accounts during the 2016 United States presidential election which 14 were allegedly controlled by the Russia-based Internet Research Agency (‘IRA’).” Id. FAN’s 15 Facebook account and page were among those that were shut down. Id. ¶ 57. FAN’s Facebook 16 account and page were shut down on April 3, 2018. Id. 17 1. FAN’s Role in Russian Interference in the 2016 United States Presidential Election 18 As aforementioned, Facebook shut down Facebook accounts with connections to Russian 19 Facebook accounts allegedly controlled by the IRA. Id. ¶ 10. The IRA was “an agency which 20 allegedly employed fake accounts registered on major social networks . . . to promote the Russian 21 government’s interests in domestic and foreign policy.” Id. ¶ 11. Specifically, in a United States 22 Intelligence Community report regarding alleged Russian interference in the 2016 presidential 23 election, the IRA was described as an agency of “professional trolls whose likely financier is a 24 close Putin ally with ties to Russian intelligence.” Id. ¶ 14 (internal quotation marks omitted). 25 Notably, from “the time of FAN’s incorporation and until in or about the middle of 2015, FAN 26 and the IRA were located in the same building” in Saint Petersburg, Russia. Id. ¶ 37. 27 1 In addition, FAN’s founder and first “General Director” is Aleksandra Yurievna Krylova. 2 Id. ¶ 34. The Special Counsel investigation into Russian interference in the 2016 presidential 3 election that was headed by Robert Mueller determined that Krylova was employed by the IRA 4 from about September 2013 to about November 2014. Id. ¶¶ 19, 34. However, FAN proclaims 5 that it does not know the veracity of the Special Counsel’s finding. Id. ¶ 34. Nevertheless, on 6 February 16, 2018, the Special Counsel indicted Krylova, who was accused of participation in the 7 IRA’s “interference operations targeting the United States.” Id. ¶ 39. 8 Moreover, on October 19, 2018, the United States District Court for the Eastern District of 9 Virginia unsealed a criminal complaint. Id. ¶ 41. The criminal complaint divulged that the 10 Federal Bureau of Investigation (“FBI”) had uncovered “a Russian interference operation in 11 political and electoral systems targeting populations within the Russian Federation, and other 12 countries, including the United States” codenamed “Project Lakhta.” Id. In support of the 13 criminal complaint, the FBI asserted that Project Lakhta used “inauthentic user names to create 14 fictitious Facebook profiles” and “published false and misleading news articles intended to 15 influence the U.S. and other elections.” Id. ¶¶ 46, 48. Notably, the FBI also attested that FAN, as 16 well as the IRA, were entities within Project Lakhta. Id. ¶ 42. Furthermore, the criminal 17 complaint was filed against Elena Alekseevna Khusyaynova, who has been FAN’s chief 18 accountant since August 2, 2016. Id. ¶¶ 41, 51. However, FAN maintains that it was not involved 19 in Project Lakhta and that it had no “direct connection” to the IRA. Id. ¶¶ 45, 56. 20 2. Facebook’s Role in the United States’ Investigation of Russian Interference in the 2016 Presidential Election 21 On September 6, 2017, Facebook’s Chief Security Officer Alex Stamos announced that 22 “Facebook found approximately $100,000.00 in advertisement spending” between June 2015 and 23 May 2017 “associated with more than 3,000 advertisements in connection with approximately 470 24 allegedly inauthentic Facebook accounts and Pages.” Id. ¶ 15. Stamos stated that “Facebook 25 conducted a sweeping search looking for all ads that might have originated in Russia.” Id. ¶ 16 26 (quotation marks omitted). Facebook then “shared these findings with United States authorities” 27 1 and provided Congress “with information related to the 3,000 advertisements.” Id. ¶¶ 16-17. 2 On September 21, 2017, Facebook’s cofounder, chairman, and chief executive officer 3 Mark Zuckerberg released a video stating that “Facebook is actively working with the U.S. 4 government on its ongoing investigations into Russian interference” and that Facebook is 5 providing information to the Special Counsel. Id. ¶ 19. 6 3. The Removal of FAN’s Facebook Account and Page 7 On April 3, 2018, Facebook shut down FAN’s Facebook account and page. Id. ¶ 57. In an 8 email, Facebook explained that FAN’s Facebook account and page were shut down because FAN 9 allegedly violated Facebook’s Terms of Service. Id. ¶ 58. FAN was among the more than 270 10 Russian language accounts and pages that Facebook shut down on April 3, 2018. Id. ¶ 20. On the 11 same day, Zuckerberg published a blog post explaining Facebook’s actions. Id. ¶ 21. Zuckerberg 12 wrote that the accounts and pages taken down on April 3, 2018 were removed because “they were 13 controlled by the IRA” and not because of “the content they shared.” Id. Specifically, Zuckerberg 14 wrote that the IRA “has repeatedly acted deceptively and tried to manipulate people in the US, 15 Europe, and Russia,” and since 2016, when the IRA “had set up a network of hundreds of fake 16 accounts to spread divisive content and interfere in the US presidential election,” Facebook has 17 improved its “techniques to prevent nation states from interfering in foreign elections.” Mark 18 Zuckerberg, https://www.facebook.com/zuck/posts/10104771321644971 (last visited January 9, 19 2020); see FAC ¶ 21 (referencing Zuckerberg’s blog post). 20 B. Procedural History 21 On November 20, 2018, Plaintiffs filed their complaint against Facebook. ECF No. 1 22 (“Compl.”). Plaintiffs originally alleged five causes of action: (1) a Bivens claim for violation of 23 the First Amendment; (2) “damages under Title II of the U.S. Civil Rights Act of 1964 and 42 24 U.S.C.

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Federal Agency of News LLC v. Facebook, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-agency-of-news-llc-v-facebook-inc-cand-2020.