WEBVTT - Trump Administration Flouting Judges' Orders & Meta Trial

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<v Speaker 1>This is Bloomberg Law with June Grosse from Bloomberg Radio.

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<v Speaker 2>The Trump administration is not following all court orders, and

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<v Speaker 2>that's according to federal judges. The judges are fielding more

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<v Speaker 2>requests to force the administration to comply with their rulings

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<v Speaker 2>against the federal government than in any other administration, including

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<v Speaker 2>the first Trump administration. One of the earliest cases was

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<v Speaker 2>when the Chief DC Judge in March of twenty twenty

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<v Speaker 2>five ordered the administration to turn back planes flying Venezuelan

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<v Speaker 2>migrants to a prison in El Salvador, and the administration

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<v Speaker 2>failed to do so. Now, a study by Bloomberg Lawn

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<v Speaker 2>shows that judges have found the administration has failed to

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<v Speaker 2>comply with their orders in more than half of the

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<v Speaker 2>twenty five cases identified regarding preliminary injunction. Joining me is

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<v Speaker 2>Bloomberg Law reporter Suzanne Monnac, who's done the research and

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<v Speaker 2>crunched the numbers. Normally, a judge issues and order and

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<v Speaker 2>the parties comply with the order. What's been happening in

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<v Speaker 2>several cases with orders issued against the federal government.

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<v Speaker 3>We've seen some recent examples where the Trump administration has

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<v Speaker 3>been at least accused of and in some cases found

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<v Speaker 3>of not fully complying with these court orders. Attract two

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<v Speaker 3>dozen examples at least of times when initial preliminary injunction

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<v Speaker 3>orders issued early in a case were not fully followed,

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<v Speaker 3>or at least the challengers alleged that they were not

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<v Speaker 3>being fully followed by the government.

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<v Speaker 4>Under this administration alone.

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<v Speaker 2>What kind of cases are we talking about?

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<v Speaker 4>All different types of cases against the government.

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<v Speaker 3>We've seen them in big cases of our usaid funding cuts,

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<v Speaker 3>the dismantling of international broadcaster Voice of America, other big

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<v Speaker 3>cases across the country where there were early preliminary injunction

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<v Speaker 3>orders granted against the administration telling them to stop doing something,

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<v Speaker 3>and then we saw the challengers come back into court

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<v Speaker 3>and claim the administration wasn't fully following that order. And

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<v Speaker 3>in about half of those twenty five instances, the judge agreed,

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<v Speaker 3>at least in part.

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<v Speaker 2>There was a scathing opinion by a Reagan appointee in

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<v Speaker 2>the Voice of America case, and in another case, a

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<v Speaker 2>senior DC federal judge said that the Defense Department's actions

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<v Speaker 2>flout the court's explicit directives. So these federal judges are

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<v Speaker 2>not beating around the bush. How upset are the judges

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<v Speaker 2>about this failure to comply with their explicit.

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<v Speaker 3>Orders in some cases pretty upset And obviously when it

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<v Speaker 3>comes to judges, sometimes they're upset and they still write

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<v Speaker 3>a pretty boring opinion, So it's hard to always know.

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<v Speaker 3>But yes, as you mentioned in a couple of examples,

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<v Speaker 3>the judges did in fact let us know that they

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<v Speaker 3>weren't happy with the government's conduct. In that one instance

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<v Speaker 3>you mentioned, Judge Lambert or Reagan appointee in DC, when

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<v Speaker 3>he was handling the Voice of America case, said that

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<v Speaker 3>he thought the government was quote in violation of even

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<v Speaker 3>the most meager reading end quote of his court order.

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<v Speaker 4>So definitely not pleased.

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<v Speaker 3>We've also seen plenty of orders where the judge is

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<v Speaker 3>kind of very matter of factuty as like, I don't

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<v Speaker 3>see the government as having fully complied with this order.

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<v Speaker 4>These are inconsistent.

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<v Speaker 3>You know, you need to do this differently if you

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<v Speaker 3>want to be in compliance with my order.

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<v Speaker 2>A few judges wanted to take things further or did

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<v Speaker 2>take things further. So in Minnesota you had the chief

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<v Speaker 2>judge finding that Ice violated court orders in dozens of

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<v Speaker 2>immigration cases. And then there was a federal judge who

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<v Speaker 2>held a government lawyer in civil contempt, though that didn't

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<v Speaker 2>last long. Tell us about that.

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<v Speaker 3>Yes, in this story, I was tracking motions to enforce

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<v Speaker 3>preliminary injunctions, but there have been a lot of different

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<v Speaker 3>types of motions filed to force compliance with court orders

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<v Speaker 3>against this administration. And in that one example you mentioned,

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<v Speaker 3>we saw a Minnesota federal judge actually held a government

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<v Speaker 3>lawyer briefly in civil contempt of court for not correctly

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<v Speaker 3>facilitating the release of a detained immigrant. He was released

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<v Speaker 3>in the wrong state without his property, and it came

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<v Speaker 3>out that the lawyer hadn't forwarded the court's order to

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<v Speaker 3>ICE on time, so there was just a full breakdown

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<v Speaker 3>in communication. The lawyer actually did apologize and said, I've

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<v Speaker 3>just been really overwhelmed. But the judge had ordered essentially

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<v Speaker 3>a financial penalty for every day that the detained immigrant,

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<v Speaker 3>you know, was not with his property, and the government

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<v Speaker 3>did remedy it very quickly. I don't believe the government lawyer,

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<v Speaker 3>who was acting in the capacity of representing ICE, did

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<v Speaker 3>actually end up having to pay anything personally, but it

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<v Speaker 3>was a pretty significant sanction to see against the government.

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<v Speaker 2>So in these cases, the government is giving instructions about

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<v Speaker 2>what the court said and what the agency supposed to do.

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<v Speaker 2>Do you know, is it a lot of times that

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<v Speaker 2>the government lawyers are screwing up or that the agency

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<v Speaker 2>is just not complying.

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<v Speaker 4>I think it's a mix.

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<v Speaker 3>In the case I just mentioned in Minnesota, that was

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<v Speaker 3>a case where there was definitely seemed to be an

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<v Speaker 3>overwhelmed lawyer for the government who was dealing with a

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<v Speaker 3>lot of these immigration detention challenges as cases. But certainly

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<v Speaker 3>I think there may be instances where it is, you know,

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<v Speaker 3>the agency, and we've seen the government actually, like in

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<v Speaker 3>that Minnesota case, say like, look, we can't always be

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<v Speaker 3>responsible for what the agency does. The Justice Department, of course,

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<v Speaker 3>represents federal agencies in court, and so you know, that's

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<v Speaker 3>really kind of an interesting question as we see some

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<v Speaker 3>of these compliances issues come up in cases to what

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<v Speaker 3>extent is the Justice Department responsible for a federal agency

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<v Speaker 3>not fully following a court order or interpreting it too

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<v Speaker 3>narrowly and you know, not fully complying in the full

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<v Speaker 3>spirit of the order. I think that's an interesting question

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<v Speaker 3>and one that we've seen come up already.

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<v Speaker 2>One of the first and probably still most famous case

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<v Speaker 2>is is where the chief judge in DC, Judge Boseburg,

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<v Speaker 2>ordered the government when they were sending venezuel and immigrants

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<v Speaker 2>to prisons in El Salvador, to turn the planes around,

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<v Speaker 2>and they didn't, and he wanted to have a criminal

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<v Speaker 2>contempt investigation.

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<v Speaker 3>But what happened the DC Circuit ruled against him on

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<v Speaker 3>that issue and blocked a hearing from being held. Proceedings

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<v Speaker 3>are still pending on that issue. But yes, that was

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<v Speaker 3>probably one of the most famous issues of court compliance

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<v Speaker 3>that have happened in this administration, and happened so early

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<v Speaker 3>kind of set the tone perhaps for some of the

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<v Speaker 3>issues to come. And in that case, we were talking about

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<v Speaker 3>criminal contempt, which is a different form of content than

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<v Speaker 3>we were discussing with the Minnesota lawyer.

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<v Speaker 4>That was civil contempt, so quite a bit more serious.

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<v Speaker 2>I mean, particularly it's noticeable in the immigration cases to me.

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<v Speaker 2>But is it a reflection of the Trump administration sort

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<v Speaker 2>of flexing or trying to flex its executive power or

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<v Speaker 2>is it something else?

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<v Speaker 4>Certainly it depends who you ask.

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<v Speaker 3>I think that it is fair to say that when

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<v Speaker 3>we're seeing this many motions to force compliance of court orders,

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<v Speaker 3>more motions to enforce preliminary orders, but also some of

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<v Speaker 3>the other ones you've talked about, to compel compliance, to

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<v Speaker 3>consider contempt. That does probably show that we're dealing with

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<v Speaker 3>an executive branch that is, you know, maybe interpreting court

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<v Speaker 3>orders in a new way or really you know, drawing

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<v Speaker 3>more this litigation as well. It's also partly, you know,

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<v Speaker 3>a bit of a numbers game. To be clear, the

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<v Speaker 3>majority of cases we're not seeing these compliance orders. It

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<v Speaker 3>is still a small share of them. It's just a

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<v Speaker 3>significantly higher share than we've seen involving the government in

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<v Speaker 3>administrations past. The Department of Justice did respond to our

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<v Speaker 3>reporting and they blamed really more the planeffs, you know,

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<v Speaker 3>they said, this is not a pattern of non compliance

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<v Speaker 3>in our part, like our DOJ lawyers work closely with

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<v Speaker 3>the agencies to make sure they're complying, and said that

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<v Speaker 3>it's actually the plain IFFs, the court challengers who are

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<v Speaker 3>trying to test or expand the scope of injunctions. So

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<v Speaker 3>I think what we're also kind of seeing and not

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<v Speaker 3>only is sort of this flexing of executive power, but

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<v Speaker 3>it's also the tension between executive power and judicial power,

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<v Speaker 3>and the administration saying, you know, what can we do

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<v Speaker 3>with the courts ruling as they are, and plainniffs are saying,

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<v Speaker 3>what can the courts do to keep the administration from

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<v Speaker 3>doing what it's doing?

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<v Speaker 4>So we're kind of seeing a lot of that push

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<v Speaker 4>them fullyly.

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<v Speaker 2>In how many cases did the judges actually find that

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<v Speaker 2>there hadn't been compliance?

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<v Speaker 3>We looked at a small slice of court compliance motions,

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<v Speaker 3>which for motions to enforce preliminary injunctions. But I think

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<v Speaker 3>it's an interesting example to look at because it shows

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<v Speaker 3>a compliance issue really early in a case. A preliminary

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<v Speaker 3>injunction would come down pretty soon after a lawsuit, showing

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<v Speaker 3>that the challenger was likely to win its case, and

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<v Speaker 3>so then we're seeing the government, you know, immediately potentially

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<v Speaker 3>not following that order.

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<v Speaker 4>I think it's an interesting place to look in that case.

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<v Speaker 3>Of the twenty five motions we identified in certain types

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<v Speaker 3>of cases against the government, fourteen of them had a

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<v Speaker 3>judge either grant fully or partially that ruling. In a

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<v Speaker 3>few other cases it was either denied, sometimes it was

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<v Speaker 3>resolved otherwise, or even mooted sometimes because the case just

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<v Speaker 3>progressed past that stage. But a fourteen out of twenty

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<v Speaker 3>five was still somewhat of a striking number for comparison.

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<v Speaker 3>Under the Biden administration, there were only two motions to

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<v Speaker 3>enforce preliminary injunctions crouled against the government, and one of

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<v Speaker 3>them was partially grand and a medicaid involved case led

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<v Speaker 3>by Texas. And during the first Trumpet administration, we saw

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<v Speaker 3>eleven motions to enforced preliminary injunctions, about half of those

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<v Speaker 3>partially or fully granted, so somewhat of a similar statistic,

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<v Speaker 3>But I mean, that was eleven over four years. We're

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<v Speaker 3>looking at twenty five and a year and a half.

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<v Speaker 3>So I think we can expect potentially this number to

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<v Speaker 3>grow as the number of court challenges grow and you know,

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<v Speaker 3>as we see the administration kind of see what you know,

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<v Speaker 3>they're able to do with these court orders.

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<v Speaker 2>So I've talked with, you know, many former federal prosecutors

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<v Speaker 2>who talk about how the presumption of regularity is being

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<v Speaker 2>eroded in the Trump administration, in the second Trump administration,

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<v Speaker 2>because the judges are not trusting what the government lawyers

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<v Speaker 2>are saying.

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<v Speaker 3>That's certainly a consequence when we're talking about court compliance issues,

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<v Speaker 3>if we're seeing examples where the government is making I mean,

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<v Speaker 3>in addition to court compliance issues. There have also been

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<v Speaker 3>notable examples where government lawyers have made stakes in court,

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<v Speaker 3>said things that they've had to go back and later correct,

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<v Speaker 3>and even if they are still correcting it, which is

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<v Speaker 3>what you're supposed to do, if you notice an error,

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<v Speaker 3>you're supposed to correct it, that still does work to

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<v Speaker 3>chip away at that presumption of regularity or you know,

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<v Speaker 3>the assumption judges make that the government's acting and good

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<v Speaker 3>faith in court. Some of the lawyers I spoke to,

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<v Speaker 3>you know, one of them told me that she didn't

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<v Speaker 3>see the presumption of regularity as being in full crisis

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<v Speaker 3>at this point yet, but that it's certainly being tested.

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<v Speaker 3>So I think that's another thing that we're going to

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<v Speaker 3>watch and both during this administration and an administrations to

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<v Speaker 3>come to what extent will the government will be able

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<v Speaker 3>to recover from this.

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<v Speaker 2>It's also true that a lot of these lawyers who

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<v Speaker 2>were being thrown into court, particularly in the immigration cases,

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<v Speaker 2>they have people who are not experts in immigration appearing

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<v Speaker 2>in court, and they have a lot of inexperienced prosecutors

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<v Speaker 2>because so many prosecutors left the Justice Department.

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<v Speaker 3>Yes, the brain drain and the Justice Department is certainly

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<v Speaker 3>a significant factor when it comes to these issues. Anytime

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<v Speaker 3>you see a lawyer make a mistake in court who's

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<v Speaker 3>really new to the department, I mean you have to

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<v Speaker 3>wonder if perhaps having had more of those career people

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<v Speaker 3>who had years of experience being there might have helped.

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<v Speaker 3>And certainly again in that Minnesota case we were discussing,

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<v Speaker 3>the attorney who was briefly held in civil contempt was

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<v Speaker 3>a military lawyer who'd been dispatched apparently to help out

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<v Speaker 3>with the surge of immigration cases happening in Minnesota at

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<v Speaker 3>the time, because there wasn't the staffing to handle it.

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<v Speaker 4>So, I mean, those are the things that happen.

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<v Speaker 3>Things do slip through, and you end up with mistakes

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<v Speaker 3>being made even under the best intentions when there isn't

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<v Speaker 3>you know, full staffing or or full level of experience.

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<v Speaker 2>Susanne, you put a lot of research into this. Thanks

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<v Speaker 2>so much for sharing your findings with us. That's Bloomberg

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<v Speaker 2>Law reporter Susanne Monnac. It's the biggest legal fight yet

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<v Speaker 2>over harm to youth from social media and a pivotal

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<v Speaker 2>moment for Meta, which is facing a possibility of a

0:11:56.920 --> 0:12:01.920
<v Speaker 2>one point four trillion dollar DAMAGEES verdict and structural changes

0:12:02.040 --> 0:12:05.960
<v Speaker 2>to its platform. Meta is once again on trial over

0:12:06.160 --> 0:12:11.040
<v Speaker 2>dangers its platforms allegedly posed to children, and it's arguing

0:12:11.280 --> 0:12:14.760
<v Speaker 2>once again that it works hard to make its platform

0:12:14.920 --> 0:12:19.840
<v Speaker 2>safe for children. State attorneys general accuse Meta of contributing

0:12:19.880 --> 0:12:23.960
<v Speaker 2>to the youth mental health crisis by knowingly and deliberately

0:12:24.080 --> 0:12:28.600
<v Speaker 2>designing features that addict children to its platforms and hiding

0:12:28.640 --> 0:12:32.160
<v Speaker 2>these harms from the public. It also argues that Meta

0:12:32.280 --> 0:12:37.440
<v Speaker 2>routinely collects data on children under thirteen without their parents' consent,

0:12:37.880 --> 0:12:41.640
<v Speaker 2>in violation of federal law. Joining me is Bloomberg Legal

0:12:41.679 --> 0:12:46.120
<v Speaker 2>reporter Madeleine Meckelberg, who's covering the trial. Madeline tell us

0:12:46.160 --> 0:12:50.320
<v Speaker 2>about this sort of new strategy the plaintiffs are using

0:12:50.800 --> 0:12:55.400
<v Speaker 2>where they're arguing that it's the products themselves, their design

0:12:55.600 --> 0:13:00.640
<v Speaker 2>and functionality, that have created harms, rather than talk about

0:13:01.240 --> 0:13:01.920
<v Speaker 2>the content.

0:13:02.920 --> 0:13:03.440
<v Speaker 5>That's right.

0:13:03.559 --> 0:13:07.240
<v Speaker 1>So this case is like thousands of others that have

0:13:07.360 --> 0:13:10.840
<v Speaker 1>been filed in that it's an attempt by litigants to

0:13:11.480 --> 0:13:15.080
<v Speaker 1>get around Section two thirty, which gives pretty broad protections

0:13:15.120 --> 0:13:19.560
<v Speaker 1>to technology companies from liability for content that's posted on

0:13:19.600 --> 0:13:23.000
<v Speaker 1>their website. And so there are different baskets of cases

0:13:23.040 --> 0:13:25.800
<v Speaker 1>that we can talk about, but essentially, all of them

0:13:25.920 --> 0:13:32.120
<v Speaker 1>are seeking to hold companies like Meta, TikTok, Snapchat, Google's YouTube.

0:13:32.440 --> 0:13:35.200
<v Speaker 1>They're trying to hold them accountable for the design of

0:13:35.280 --> 0:13:39.040
<v Speaker 1>their platforms and features that they say are designed to

0:13:39.080 --> 0:13:41.520
<v Speaker 1>be addictive and harmful to kids.

0:13:41.880 --> 0:13:44.440
<v Speaker 2>So it's the public nuisance theory that was used in

0:13:44.480 --> 0:13:45.800
<v Speaker 2>the New Mexico case.

0:13:46.360 --> 0:13:48.760
<v Speaker 1>So the case that's go at trial right now with

0:13:48.800 --> 0:13:51.679
<v Speaker 1>the state attorneys general is not a public nuisance case.

0:13:51.960 --> 0:13:54.959
<v Speaker 1>That's a legal theory that's being put forward in cases

0:13:54.960 --> 0:13:57.920
<v Speaker 1>that have been filed by groups of school districts and

0:13:57.960 --> 0:14:01.320
<v Speaker 1>by some individual attorneys general. There are a ton of cases,

0:14:01.360 --> 0:14:03.760
<v Speaker 1>so it's pretty confusing and it's hard to keep track

0:14:03.800 --> 0:14:04.400
<v Speaker 1>of all of them.

0:14:04.720 --> 0:14:05.880
<v Speaker 5>But the case that's at.

0:14:05.760 --> 0:14:09.720
<v Speaker 1>Trial right now involves twenty nine state ags and they've

0:14:09.720 --> 0:14:13.480
<v Speaker 1>brought their case under two kind of baskets of legal claims.

0:14:14.000 --> 0:14:17.600
<v Speaker 1>The first one is consumer protection laws, and this is

0:14:17.600 --> 0:14:20.400
<v Speaker 1>where it gets slightly more confusing. Only four of the

0:14:20.400 --> 0:14:23.720
<v Speaker 1>twenty nine states have brought consumer protection claims, but they're

0:14:23.760 --> 0:14:26.480
<v Speaker 1>all being tried together at this trial, and those are

0:14:26.520 --> 0:14:30.000
<v Speaker 1>claims about the design of the platform. They say that

0:14:30.080 --> 0:14:33.120
<v Speaker 1>they knowingly designed it to hook kids, and importantly that

0:14:33.200 --> 0:14:37.000
<v Speaker 1>they misled the public and parents about risks that the

0:14:37.040 --> 0:14:39.800
<v Speaker 1>companies should have known about its products.

0:14:40.200 --> 0:14:41.600
<v Speaker 5>And that's one basket.

0:14:41.680 --> 0:14:44.640
<v Speaker 1>And then there's also privacy claims during this lawsuit, and

0:14:44.680 --> 0:14:47.200
<v Speaker 1>so the rest of the states are alleging that Meta

0:14:47.360 --> 0:14:50.360
<v Speaker 1>knew that there were users under thirteen on its platform

0:14:50.640 --> 0:14:53.400
<v Speaker 1>and it was collecting data from those kids in violation

0:14:53.480 --> 0:14:56.800
<v Speaker 1>of federal law. So it's two different kind of baskets,

0:14:56.800 --> 0:14:59.880
<v Speaker 1>but it's being discussed as part of this broader landscape

0:14:59.880 --> 0:15:02.440
<v Speaker 1>of the cases against social media, and they're all kind

0:15:02.440 --> 0:15:06.840
<v Speaker 1>of trying slightly different novel legal theories as different ways

0:15:06.840 --> 0:15:09.200
<v Speaker 1>of getting at these companies. And I want to clarify

0:15:09.240 --> 0:15:11.720
<v Speaker 1>that the case that's happening right now, Meta is.

0:15:11.640 --> 0:15:14.040
<v Speaker 5>The only defendant in this day age case.

0:15:14.160 --> 0:15:17.320
<v Speaker 1>Some of the other cases include other social media companies,

0:15:17.400 --> 0:15:18.760
<v Speaker 1>but this one is just Meta.

0:15:19.080 --> 0:15:23.440
<v Speaker 2>In the opening statement, the plaintiff's attorney said the business

0:15:23.480 --> 0:15:25.840
<v Speaker 2>model is hook the user, hook them for as long

0:15:25.920 --> 0:15:28.800
<v Speaker 2>as you can harvest their data, and then hide the truth.

0:15:29.000 --> 0:15:31.320
<v Speaker 2>Did she say how she was going to prove.

0:15:31.120 --> 0:15:32.280
<v Speaker 5>That that's right?

0:15:32.360 --> 0:15:35.200
<v Speaker 1>She was talking about her four h's and kind of

0:15:35.240 --> 0:15:37.840
<v Speaker 1>giving a jurors a roadmap of what we can expect

0:15:37.880 --> 0:15:40.640
<v Speaker 1>to hear, and I think for folks that were following

0:15:40.680 --> 0:15:43.400
<v Speaker 1>some of the developments in the personal injury case that

0:15:43.480 --> 0:15:45.920
<v Speaker 1>happened earlier this year, we're going to see a lot

0:15:45.960 --> 0:15:50.240
<v Speaker 1>of similar arguments and similar witnesses come forward. They're planning

0:15:50.280 --> 0:15:54.120
<v Speaker 1>to call folks like Mark Zuckerberg and Adam Musserri, who's

0:15:54.520 --> 0:15:57.560
<v Speaker 1>the CEO of Meta and the head of Instagram, respectively.

0:15:58.040 --> 0:16:01.240
<v Speaker 1>They're going to call current and form employees to talk

0:16:01.280 --> 0:16:04.280
<v Speaker 1>about the design and to talk about internal studies at

0:16:04.320 --> 0:16:08.000
<v Speaker 1>Meta that they conducted about teen users and harms that

0:16:08.040 --> 0:16:12.800
<v Speaker 1>they experiencing on the platforms. And they also are going

0:16:12.840 --> 0:16:15.440
<v Speaker 1>to call in folks like Artu Obahar, who was the

0:16:15.440 --> 0:16:19.080
<v Speaker 1>first witness. He's a former employee turned whistleblower who's spoken

0:16:19.280 --> 0:16:22.920
<v Speaker 1>very publicly about his safety concerns with the platform. So

0:16:22.960 --> 0:16:25.840
<v Speaker 1>it's going to be a lot of witness testimony and

0:16:26.040 --> 0:16:30.200
<v Speaker 1>internal documents showing what Meta knew when, and then juxtaposing

0:16:30.240 --> 0:16:32.600
<v Speaker 1>that with what messaging they were putting out to.

0:16:32.520 --> 0:16:35.560
<v Speaker 5>The public, because that's a kind of important component in

0:16:35.600 --> 0:16:36.200
<v Speaker 5>this case.

0:16:36.480 --> 0:16:40.840
<v Speaker 1>Is this idea that they misled or otherwise hit information

0:16:41.000 --> 0:16:44.040
<v Speaker 1>that the attorneys are arguing should have been made available.

0:16:44.560 --> 0:16:48.200
<v Speaker 2>A lot of the witnesses have already testified in other cases,

0:16:48.800 --> 0:16:51.880
<v Speaker 2>and so both sides should pretty much know what they're

0:16:51.920 --> 0:16:52.520
<v Speaker 2>going to say.

0:16:53.120 --> 0:16:56.000
<v Speaker 5>I think that's definitely one way to look at it.

0:16:56.080 --> 0:16:59.520
<v Speaker 1>I don't think at this moment we're expecting any major

0:16:59.680 --> 0:17:03.360
<v Speaker 1>bombs to be revealed about things going on at Meta

0:17:03.440 --> 0:17:06.040
<v Speaker 1>that we didn't know about. And I think that's kind

0:17:06.080 --> 0:17:09.600
<v Speaker 1>of the point of these cases is it's not about

0:17:09.800 --> 0:17:14.240
<v Speaker 1>unearthing previously unknown information, which sometimes is what happens when

0:17:14.280 --> 0:17:15.280
<v Speaker 1>cases go to trial.

0:17:15.800 --> 0:17:18.800
<v Speaker 5>This is an issue that we are well aware of

0:17:18.960 --> 0:17:19.639
<v Speaker 5>as the public.

0:17:19.720 --> 0:17:23.000
<v Speaker 1>It's something that's been discussed at congressional hearings in other

0:17:23.119 --> 0:17:26.680
<v Speaker 1>cases and by the companies themselves as they've repeatedly rolled

0:17:26.720 --> 0:17:29.639
<v Speaker 1>out their attempts at safety features, and you know, you

0:17:29.680 --> 0:17:32.720
<v Speaker 1>might hear about teen accounts on different platforms, and so

0:17:33.200 --> 0:17:38.359
<v Speaker 1>this is about finding an avenue or accountability for certain

0:17:38.400 --> 0:17:40.760
<v Speaker 1>groups of litigants for this company. And so yeah, I

0:17:40.760 --> 0:17:42.480
<v Speaker 1>think a lot of the testimony is going to be

0:17:42.520 --> 0:17:45.159
<v Speaker 1>familiar to folks that really care about this issue and

0:17:45.240 --> 0:17:48.159
<v Speaker 1>follow it. That doesn't make it any less important, because

0:17:48.160 --> 0:17:49.960
<v Speaker 1>at the end of the day, doesn't.

0:17:49.640 --> 0:17:51.679
<v Speaker 5>Really matter what we know about it.

0:17:51.720 --> 0:17:54.840
<v Speaker 1>What matters is that this is potentially the first time

0:17:54.880 --> 0:17:57.640
<v Speaker 1>that those jurors sitting in the room are hearing about

0:17:57.640 --> 0:18:01.160
<v Speaker 1>some of this stuff, hearing the testimony, seeing the internal emails.

0:18:01.720 --> 0:18:04.199
<v Speaker 2>Let me ask you about the jury because it's an

0:18:04.240 --> 0:18:08.879
<v Speaker 2>advisory jury. This judge has used that kind of advisory

0:18:08.960 --> 0:18:09.800
<v Speaker 2>jury before.

0:18:10.240 --> 0:18:14.879
<v Speaker 1>Yes, Judge von Gonzalez Rogers is probably well known to

0:18:14.920 --> 0:18:17.520
<v Speaker 1>folks following any kind of the social media cases, but

0:18:17.600 --> 0:18:20.879
<v Speaker 1>also just kind of tech and Silicon Valley cases in general.

0:18:20.960 --> 0:18:23.680
<v Speaker 1>She's seated in Oakland, and we saw her do the

0:18:23.760 --> 0:18:26.919
<v Speaker 1>similar strategy at a recent high profile case, which was

0:18:26.920 --> 0:18:30.080
<v Speaker 1>the Elon Musk lawsuit against Sam Altman in Open Ai,

0:18:30.520 --> 0:18:34.159
<v Speaker 1>where she essentially is having a jury seated for the trial.

0:18:34.320 --> 0:18:36.520
<v Speaker 1>They're hearing all the evidence and they're going to issue

0:18:36.520 --> 0:18:38.800
<v Speaker 1>a verdict. They don't know that their opinion is going

0:18:38.840 --> 0:18:41.720
<v Speaker 1>to be advisory. But then at the end of the day,

0:18:42.040 --> 0:18:44.680
<v Speaker 1>Judge Rogers can decide whether she wants to adopt their

0:18:44.720 --> 0:18:47.600
<v Speaker 1>findings or whether she feels like the evidence is pointing

0:18:47.600 --> 0:18:48.639
<v Speaker 1>her in a different direction.

0:18:49.480 --> 0:18:52.720
<v Speaker 2>They'll be disappointed when they find they sad for all

0:18:52.760 --> 0:18:55.600
<v Speaker 2>these weeks and their their verdict is not binding.

0:18:56.040 --> 0:18:58.320
<v Speaker 1>It doesn't mean it's not you know, they're not doing

0:18:58.359 --> 0:18:59.400
<v Speaker 1>a valuable service.

0:18:59.440 --> 0:18:59.960
<v Speaker 5>Like there's a.

0:19:00.000 --> 0:19:02.320
<v Speaker 1>Reason that she's doing that, and it's that these cases

0:19:02.359 --> 0:19:06.160
<v Speaker 1>are incredibly complicated, and while this one is not a bellwether,

0:19:06.400 --> 0:19:10.000
<v Speaker 1>it's still part of this massive multi district litigation.

0:19:10.320 --> 0:19:13.359
<v Speaker 5>And the outcome here, again, it won't.

0:19:13.320 --> 0:19:17.040
<v Speaker 1>Necessarily set a precedent until there's appeals and kind of

0:19:17.040 --> 0:19:19.800
<v Speaker 1>gets decided at the circuit level in some respects. But

0:19:20.359 --> 0:19:22.760
<v Speaker 1>what happens here will have sway in other cases. So

0:19:22.800 --> 0:19:25.320
<v Speaker 1>I think what we're seeing is a judge who's really

0:19:25.359 --> 0:19:27.680
<v Speaker 1>trying to dot all the i's, cross all the t's

0:19:27.800 --> 0:19:30.399
<v Speaker 1>and make sure that she's really giving it fair consideration.

0:19:30.760 --> 0:19:33.679
<v Speaker 2>Do you know if she followed the jury's suggestions in

0:19:33.760 --> 0:19:37.040
<v Speaker 2>the open AI case with Altman and Elon Musk.

0:19:37.200 --> 0:19:37.720
<v Speaker 5>She did.

0:19:38.200 --> 0:19:41.080
<v Speaker 1>She did follow their suggestions there, and that was because

0:19:41.200 --> 0:19:43.600
<v Speaker 1>she kind of said from the outset in that case

0:19:43.840 --> 0:19:46.800
<v Speaker 1>there was a question of timing and whether Musk waited

0:19:46.840 --> 0:19:49.880
<v Speaker 1>too long to file his claims and the statute of limitations,

0:19:49.920 --> 0:19:52.399
<v Speaker 1>and she said that if the jury made a finding

0:19:52.440 --> 0:19:55.199
<v Speaker 1>on the statute of limitations question, she would adopt that

0:19:55.320 --> 0:19:58.640
<v Speaker 1>without question because that's a key. You know, they didn't

0:19:58.680 --> 0:20:01.359
<v Speaker 1>weigh in on the merits of this actually, just whether

0:20:01.440 --> 0:20:03.320
<v Speaker 1>he took too long to file them.

0:20:03.680 --> 0:20:08.200
<v Speaker 2>So you heard from the defense attorney as well opening statements,

0:20:08.320 --> 0:20:10.080
<v Speaker 2>what was his position.

0:20:10.720 --> 0:20:11.160
<v Speaker 5>That's right.

0:20:11.280 --> 0:20:13.879
<v Speaker 1>So Meta has maintained, you know, they deny all of

0:20:13.920 --> 0:20:16.440
<v Speaker 1>the allegations that have been brought forward in this lawsuit,

0:20:16.560 --> 0:20:20.399
<v Speaker 1>and he talked a lot about safety features that Meta

0:20:20.440 --> 0:20:23.440
<v Speaker 1>has rolled out and said that they've made real efforts

0:20:23.480 --> 0:20:28.400
<v Speaker 1>to try to reduce reported harms to teenagers. Another thing

0:20:28.440 --> 0:20:30.680
<v Speaker 1>that we've heard Meta talk about and their legal team

0:20:30.720 --> 0:20:34.240
<v Speaker 1>talk about is this idea of thirteen year olds on

0:20:34.280 --> 0:20:37.040
<v Speaker 1>the platform and kids under the age of thirteen. They've

0:20:37.040 --> 0:20:40.040
<v Speaker 1>talked about how this is an industry wide issue, is

0:20:40.240 --> 0:20:43.000
<v Speaker 1>kids signing up when they're not supposed to have accounts,

0:20:43.040 --> 0:20:46.120
<v Speaker 1>and they feel that this is an industry wide challenge.

0:20:46.160 --> 0:20:48.920
<v Speaker 1>It's not something that they should be singled out for

0:20:49.080 --> 0:20:51.480
<v Speaker 1>in this case. This is something that needs to be

0:20:51.520 --> 0:20:54.879
<v Speaker 1>tackled at a more systemic level and everyone's trying to

0:20:54.880 --> 0:20:58.040
<v Speaker 1>brainstorm solutions on that. And so I think what you

0:20:58.080 --> 0:21:01.200
<v Speaker 1>heard from them is that the AGS are really overstating

0:21:01.320 --> 0:21:01.879
<v Speaker 1>their case.

0:21:02.000 --> 0:21:03.879
<v Speaker 5>That's another thing I think I'm.

0:21:03.760 --> 0:21:06.120
<v Speaker 1>Sure we're going to talk about this big one point

0:21:06.160 --> 0:21:10.200
<v Speaker 1>four trillion dollar penalty number that's been floated. I think

0:21:10.359 --> 0:21:13.840
<v Speaker 1>metas stances that you know, when we're talking about specific

0:21:13.840 --> 0:21:17.960
<v Speaker 1>consumer protection violations. The number that's being floated is totally

0:21:18.040 --> 0:21:22.080
<v Speaker 1>disproportionate to the allegation side issue. And that's another component

0:21:22.119 --> 0:21:24.280
<v Speaker 1>of this is they've said, you're not going to hear

0:21:24.320 --> 0:21:25.760
<v Speaker 1>directly from kids in this case.

0:21:25.760 --> 0:21:27.600
<v Speaker 5>You're not going to hear from people who've been harmed.

0:21:27.600 --> 0:21:30.639
<v Speaker 1>You're supposed to just take the attorney's general word for this,

0:21:30.880 --> 0:21:32.080
<v Speaker 1>and that's not good enough.

0:21:32.160 --> 0:21:36.000
<v Speaker 2>They're not going to call any children or young adults.

0:21:36.640 --> 0:21:39.840
<v Speaker 1>I don't believe that there's any individuals on the witness list,

0:21:39.960 --> 0:21:42.919
<v Speaker 1>and that's because this case is different than you know,

0:21:42.960 --> 0:21:45.719
<v Speaker 1>the personal injury cases is a whole other category, and

0:21:45.760 --> 0:21:49.200
<v Speaker 1>that's where an individual or their family member assuming these

0:21:49.200 --> 0:21:53.600
<v Speaker 1>social media companies, saying that they personally experienced harm due

0:21:53.600 --> 0:21:57.720
<v Speaker 1>to the defective, dangerous design of these platforms. This case

0:21:57.800 --> 0:22:01.480
<v Speaker 1>is a little different with AG's they're obviously like trying

0:22:01.520 --> 0:22:04.679
<v Speaker 1>to enforce their state laws, and yeah, I don't as

0:22:04.720 --> 0:22:07.000
<v Speaker 1>far as I know, there's not a plan to call

0:22:07.000 --> 0:22:08.920
<v Speaker 1>individual users within their states.

0:22:09.320 --> 0:22:12.160
<v Speaker 2>Stay with me, Madeline. Coming up next on the Bloomberg

0:22:12.240 --> 0:22:15.960
<v Speaker 2>Lost Show, I'll continue this conversation with Madeline Meckelberg, who's

0:22:16.080 --> 0:22:20.000
<v Speaker 2>covering the Meta trial. What about that possible one point

0:22:20.040 --> 0:22:24.199
<v Speaker 2>four trillion dollars in damages? Where does it come from?

0:22:24.320 --> 0:22:28.320
<v Speaker 2>And is it inflated? I'm June Grosso and you're listening

0:22:28.400 --> 0:22:37.159
<v Speaker 2>to Bloomberg. It's the very definition of a high stakes trial.

0:22:37.760 --> 0:22:41.879
<v Speaker 2>Dozens of state Attorneys General are suing Meta, claiming it

0:22:42.000 --> 0:22:47.720
<v Speaker 2>uses unprecedented technology to entice, engage, and ensnare children and

0:22:47.800 --> 0:22:53.199
<v Speaker 2>teenagers harming their mental health. The potential financial penalty is

0:22:53.200 --> 0:22:57.199
<v Speaker 2>a shocking one point four trillion dollars. That for a

0:22:57.240 --> 0:23:00.159
<v Speaker 2>company that has a one point five trillion dollar or

0:23:00.280 --> 0:23:05.080
<v Speaker 2>market value and more than monetary damages. The state ags

0:23:05.160 --> 0:23:08.960
<v Speaker 2>are asking the judge to order Meta to make structural

0:23:09.119 --> 0:23:13.720
<v Speaker 2>changes to its platform. Meta has denied wrongdoing, saying it's

0:23:13.760 --> 0:23:18.400
<v Speaker 2>continuously improved its tools to protect kids. I've been talking

0:23:18.440 --> 0:23:23.320
<v Speaker 2>to Bloomberg Legal reporter Madeleine Meckelberg, who's covering the trial. So,

0:23:23.400 --> 0:23:28.040
<v Speaker 2>Madeline about this one point four trillion dollar number. That

0:23:28.119 --> 0:23:31.600
<v Speaker 2>number came from Meta, didn't it? The State ags haven't

0:23:31.640 --> 0:23:33.240
<v Speaker 2>specified a number.

0:23:33.840 --> 0:23:36.480
<v Speaker 6>So nobody wants to take credit at this point for

0:23:36.520 --> 0:23:39.480
<v Speaker 6>the one point four trillion dollar number, but it's out

0:23:39.520 --> 0:23:42.280
<v Speaker 6>there and so we have to talk about it. And

0:23:42.640 --> 0:23:46.520
<v Speaker 6>that's because the way that penalties are calculated under consumer

0:23:46.560 --> 0:23:47.920
<v Speaker 6>protection laws is.

0:23:48.440 --> 0:23:52.440
<v Speaker 1>Basically these four states they have a fine structure built

0:23:52.440 --> 0:23:55.160
<v Speaker 1>into the laws. So for every violation of a consumer

0:23:55.200 --> 0:23:57.879
<v Speaker 1>protection law, I think Colorado had the highest, it's a

0:23:57.880 --> 0:24:01.439
<v Speaker 1>twenty thousand dollars fine, And the question becomes, if the

0:24:01.520 --> 0:24:03.160
<v Speaker 1>jury and judge decide to.

0:24:03.200 --> 0:24:05.400
<v Speaker 5>Rule against meta and in the AG's.

0:24:05.000 --> 0:24:07.919
<v Speaker 1>Favor, now we have to do some mouth calculations and

0:24:07.960 --> 0:24:12.040
<v Speaker 1>determine what equals a violation, like what should we count

0:24:12.080 --> 0:24:13.880
<v Speaker 1>for that, And that's why we're seeing such a wide

0:24:13.920 --> 0:24:18.120
<v Speaker 1>discrepancy in the amount of penalties that's being discussed, because

0:24:18.400 --> 0:24:20.600
<v Speaker 1>if your bar for what counts as a violation is

0:24:20.680 --> 0:24:23.320
<v Speaker 1>lower for all these states, there is a world where

0:24:23.320 --> 0:24:25.560
<v Speaker 1>you get to a one point four trillion dollar number.

0:24:25.800 --> 0:24:28.240
<v Speaker 1>But we've heard the state AG's attorneys say that they've

0:24:28.240 --> 0:24:30.159
<v Speaker 1>done their own kind of calculating and they think that

0:24:30.200 --> 0:24:33.280
<v Speaker 1>it's probably closer to the two hundred billion dollar mark,

0:24:33.720 --> 0:24:36.359
<v Speaker 1>which you know that's still a ton of money, like

0:24:36.760 --> 0:24:39.880
<v Speaker 1>next to one point four trillion dollars. It sounds, you know, oh,

0:24:39.960 --> 0:24:42.320
<v Speaker 1>maybe that's not so bad. That's still a ton of money.

0:24:42.720 --> 0:24:45.360
<v Speaker 1>And I think the other thing in this case is that.

0:24:45.560 --> 0:24:47.119
<v Speaker 5>The penalties are just one part of it.

0:24:47.200 --> 0:24:49.600
<v Speaker 1>Like the high stakes here that are different than in

0:24:49.680 --> 0:24:53.520
<v Speaker 1>the personal injury cases is that the attorneys are seeking

0:24:53.800 --> 0:24:57.240
<v Speaker 1>court orders requiring Meta to change its business and change

0:24:57.280 --> 0:25:00.040
<v Speaker 1>how it's designing its platforms. They want orders that I

0:25:00.440 --> 0:25:02.880
<v Speaker 1>really enforced the age limit in a way that they

0:25:02.880 --> 0:25:05.600
<v Speaker 1>haven't previously. They want them to do away with the

0:25:05.640 --> 0:25:08.280
<v Speaker 1>design features that are at issue, like the way they

0:25:08.280 --> 0:25:11.600
<v Speaker 1>send notifications and features about their algorithm, and the way

0:25:11.640 --> 0:25:14.520
<v Speaker 1>that you can open Instagram and scroll, scroll, scroll.

0:25:14.280 --> 0:25:16.200
<v Speaker 5>And never hit the end of the feed.

0:25:16.720 --> 0:25:19.560
<v Speaker 1>And so there's a lot at stake here, even if

0:25:19.680 --> 0:25:22.440
<v Speaker 1>the dollar amount does not ultimately, at the end of

0:25:22.480 --> 0:25:26.120
<v Speaker 1>the day reach that trillion dollar benchmark.

0:25:26.760 --> 0:25:30.920
<v Speaker 2>The accusation that Meta collected data from users under thirteen

0:25:31.040 --> 0:25:35.320
<v Speaker 2>in violation of the Children's Online Privacy Protection Act? Has

0:25:35.359 --> 0:25:36.720
<v Speaker 2>that been litigated before?

0:25:37.240 --> 0:25:38.439
<v Speaker 5>I don't have an answer to that.

0:25:38.480 --> 0:25:42.199
<v Speaker 1>Actually, I think that it's I feel like there's been

0:25:42.280 --> 0:25:45.639
<v Speaker 1>there's like individual cases about that, but it's certainly nothing

0:25:45.840 --> 0:25:46.600
<v Speaker 1>on this scale.

0:25:46.880 --> 0:25:49.280
<v Speaker 5>But I don't have a concrete answer for you on that.

0:25:50.240 --> 0:25:53.560
<v Speaker 2>Tell us about the first witness the State Ags called.

0:25:54.119 --> 0:25:57.600
<v Speaker 2>He's testified several times before, but you must be very

0:25:57.680 --> 0:26:00.399
<v Speaker 2>important because they chose him as their first witness.

0:26:01.680 --> 0:26:04.080
<v Speaker 1>Right And there was a lot of back and forth

0:26:04.119 --> 0:26:06.960
<v Speaker 1>fighting before he even took the stand between Meta and

0:26:07.040 --> 0:26:10.040
<v Speaker 1>the State Ags about whether he should be allowed to testify.

0:26:10.480 --> 0:26:12.000
<v Speaker 5>And that's Arturo Behart.

0:26:12.040 --> 0:26:16.280
<v Speaker 1>He is a former researcher and manager at Meta who

0:26:16.440 --> 0:26:19.520
<v Speaker 1>kind of separate stints at the company. This first one

0:26:19.640 --> 0:26:21.840
<v Speaker 1>was when they were still Facebook, before they were Meta,

0:26:21.920 --> 0:26:24.040
<v Speaker 1>he was on an engineering team that was looking at

0:26:24.040 --> 0:26:28.000
<v Speaker 1>safety features on the platforms, all of them Facebook, Instagram,

0:26:28.040 --> 0:26:31.360
<v Speaker 1>and WhatsApp. And then he left Meta to spend time

0:26:31.359 --> 0:26:33.480
<v Speaker 1>with his family. He said on the stand he was

0:26:33.520 --> 0:26:35.120
<v Speaker 1>going through a divorce and he wanted to be.

0:26:35.080 --> 0:26:36.480
<v Speaker 5>Home with his teenage kids.

0:26:36.560 --> 0:26:38.960
<v Speaker 1>And after a few years he decided to return to

0:26:39.000 --> 0:26:43.639
<v Speaker 1>Meta as an independent contractor working on Instagram's well Being team,

0:26:44.119 --> 0:26:47.520
<v Speaker 1>which is focused on similar issues of safety and how

0:26:47.520 --> 0:26:51.160
<v Speaker 1>to improve the user experience. But he's an interesting witness

0:26:51.200 --> 0:26:52.960
<v Speaker 1>because he no longer works at Meta.

0:26:52.960 --> 0:26:55.040
<v Speaker 5>He left in twenty twenty one, and.

0:26:55.119 --> 0:26:58.920
<v Speaker 1>His story is one where he said he repeatedly tried

0:26:58.960 --> 0:27:01.879
<v Speaker 1>to raise concerns to leaders at the company, including the

0:27:01.960 --> 0:27:04.480
<v Speaker 1>highest levels Mark Zuckerberg. He was in kind of a

0:27:04.520 --> 0:27:08.160
<v Speaker 1>position where he was regularly interacting with the very top

0:27:08.200 --> 0:27:10.639
<v Speaker 1>folks at Meta, and he said he repeatedly tried to

0:27:10.720 --> 0:27:14.760
<v Speaker 1>raise concerns about safety and concerns about the way that

0:27:14.800 --> 0:27:18.320
<v Speaker 1>Meta measures safety in its internal studies, and that he

0:27:18.440 --> 0:27:21.720
<v Speaker 1>was routinely dismissed. I think some of his most powerful

0:27:21.760 --> 0:27:25.159
<v Speaker 1>testimony is about his personal experience, which is during this

0:27:25.240 --> 0:27:28.199
<v Speaker 1>time that he was not working at Meta, his teenage

0:27:28.280 --> 0:27:30.760
<v Speaker 1>daughter was fourteen and she wanted to sign up for

0:27:30.800 --> 0:27:33.600
<v Speaker 1>an Instagram account, and he said he saw firsthand some

0:27:33.680 --> 0:27:36.920
<v Speaker 1>of the harassment that she was experiencing from people online

0:27:37.280 --> 0:27:41.360
<v Speaker 1>sending her in appropriate messages, soliciting sex and images, and

0:27:41.720 --> 0:27:43.840
<v Speaker 1>he said he found it shocking, even as someone who

0:27:43.920 --> 0:27:46.840
<v Speaker 1>had a six year career at Meta working in safety,

0:27:46.920 --> 0:27:49.800
<v Speaker 1>and so that inspired him to go back to the company.

0:27:50.119 --> 0:27:51.840
<v Speaker 5>And he felt like when he tried to tell.

0:27:51.720 --> 0:27:54.960
<v Speaker 1>His daughter's story there as an anecdote and as evidence

0:27:55.040 --> 0:27:57.240
<v Speaker 1>that they really need to do something about this issue.

0:27:57.600 --> 0:27:59.480
<v Speaker 5>He said he was overlooked.

0:27:59.160 --> 0:28:03.280
<v Speaker 2>Metas said face two trials. They've lost in both, but

0:28:03.359 --> 0:28:06.000
<v Speaker 2>it seems as if from hearing what the defense attorney

0:28:06.040 --> 0:28:10.600
<v Speaker 2>said and from hearing the witnesses, that their strategy appears

0:28:10.640 --> 0:28:15.200
<v Speaker 2>to be the same. We work to implement changes that

0:28:15.240 --> 0:28:19.320
<v Speaker 2>would help mitigate this problem. It sounds pretty much the same.

0:28:20.840 --> 0:28:22.160
<v Speaker 5>I think it's very similar.

0:28:22.480 --> 0:28:25.440
<v Speaker 1>I think it's a little early to tell for sure

0:28:25.680 --> 0:28:28.359
<v Speaker 1>how this case is going to play out, but I

0:28:28.400 --> 0:28:31.800
<v Speaker 1>think it's it's definitely similar. I mean, I think a

0:28:31.840 --> 0:28:36.760
<v Speaker 1>lot of the real litigating and legal nitpicking about the

0:28:36.880 --> 0:28:39.560
<v Speaker 1>arguments is going to happen on appeal. There's no way

0:28:39.600 --> 0:28:42.240
<v Speaker 1>that whoever loses here doesn't seek an appeal in the

0:28:42.320 --> 0:28:43.000
<v Speaker 1>Ninth Circuit.

0:28:43.400 --> 0:28:45.040
<v Speaker 5>And that's I think when we're really going to.

0:28:45.080 --> 0:28:48.240
<v Speaker 1>Get to the meat and potatoes of this case and

0:28:48.280 --> 0:28:51.120
<v Speaker 1>the legal arguments, and I think that's where a lot

0:28:51.160 --> 0:28:54.320
<v Speaker 1>of focus is on. Frankly and kind of revisiting this

0:28:54.400 --> 0:28:55.640
<v Speaker 1>Section two thirty issue.

0:28:55.680 --> 0:28:57.480
<v Speaker 5>I mean, there was a ruling from the Ninth Circuit

0:28:57.520 --> 0:28:58.720
<v Speaker 5>on that allowing.

0:28:58.280 --> 0:29:01.680
<v Speaker 1>This trial to proceed, but it's not a done deal

0:29:01.840 --> 0:29:04.400
<v Speaker 1>by any means, and I think there's already been in

0:29:04.440 --> 0:29:06.520
<v Speaker 1>the first few days. The judges had to remind the

0:29:06.520 --> 0:29:10.000
<v Speaker 1>ags like, Okay, we're not veering into content, remember, like,

0:29:10.080 --> 0:29:12.520
<v Speaker 1>let's focus on this. And that was something we heard

0:29:12.520 --> 0:29:15.440
<v Speaker 1>in the previous trials too, So I definitely think Meta

0:29:15.480 --> 0:29:17.959
<v Speaker 1>has a similar stance going into this trial, but the

0:29:17.960 --> 0:29:20.360
<v Speaker 1>claims are slightly different, and so I'm sure we're going

0:29:20.440 --> 0:29:23.640
<v Speaker 1>to see a little bit of different legal maneuvering, but

0:29:23.680 --> 0:29:25.480
<v Speaker 1>it's kind of early to tell at this point.

0:29:25.800 --> 0:29:30.760
<v Speaker 2>So what's happening with the what thousands of other cases,

0:29:31.200 --> 0:29:35.440
<v Speaker 2>school districts and individuals, what's happening with those.

0:29:35.680 --> 0:29:38.840
<v Speaker 5>And that's the big question. So, yeah, there's thousands.

0:29:38.840 --> 0:29:41.800
<v Speaker 1>I think there's we're up to three thousand cases that

0:29:41.840 --> 0:29:45.880
<v Speaker 1>have been filed against these companies and they've all been

0:29:45.920 --> 0:29:51.360
<v Speaker 1>consolidated into separate, multi district litigation proceedings where they're kind

0:29:51.360 --> 0:29:55.160
<v Speaker 1>of trying to navigate the just huge scope of cases,

0:29:55.280 --> 0:29:58.320
<v Speaker 1>and so they've picked a handful of cases to serve

0:29:58.360 --> 0:30:02.800
<v Speaker 1>as bell weathers and so are selected not for any

0:30:02.960 --> 0:30:05.120
<v Speaker 1>particular reason. It's not the best case, it's not the

0:30:05.120 --> 0:30:07.440
<v Speaker 1>worst case. There meant to be a few cases that

0:30:07.480 --> 0:30:10.080
<v Speaker 1>are representative of the whole and those cases.

0:30:09.920 --> 0:30:12.480
<v Speaker 5>Are going to trial first. So we saw one of

0:30:12.480 --> 0:30:15.280
<v Speaker 5>those trials earlier this year in LA and the personal

0:30:15.280 --> 0:30:16.320
<v Speaker 5>injury case. It is a.

0:30:16.280 --> 0:30:20.480
<v Speaker 1>Teenage girl named Kaylee, and she won. She received a

0:30:20.560 --> 0:30:23.560
<v Speaker 1>verdict from the jury against Meta and against YouTube, and

0:30:24.040 --> 0:30:27.080
<v Speaker 1>there were confidential settlement agreements she reached with TikTok and

0:30:27.120 --> 0:30:30.120
<v Speaker 1>Snap ahead of trial. And there was another bell Weather

0:30:30.160 --> 0:30:32.280
<v Speaker 1>that was set to have a trial this summer, and

0:30:32.440 --> 0:30:35.520
<v Speaker 1>that individual also reached settlements with the parties and then

0:30:35.760 --> 0:30:38.200
<v Speaker 1>ultimately dismissed his claims against Meta.

0:30:38.600 --> 0:30:40.800
<v Speaker 5>So we're still very early days.

0:30:40.520 --> 0:30:42.960
<v Speaker 1>In moving through all of those cases as well, but

0:30:43.080 --> 0:30:45.240
<v Speaker 1>I think there's a few more scheduled before the end

0:30:45.280 --> 0:30:48.200
<v Speaker 1>of the year in school district cases and the personal

0:30:48.240 --> 0:30:52.040
<v Speaker 1>injury cases. And the idea is once these bell Weather

0:30:52.120 --> 0:30:54.760
<v Speaker 1>cases have been heard, then there's going to have to

0:30:54.760 --> 0:30:57.880
<v Speaker 1>be some conversations about how to resolve the rest of them.

0:30:58.000 --> 0:31:00.920
<v Speaker 1>Do these companies want to go to trial over and

0:31:00.960 --> 0:31:04.480
<v Speaker 1>over and over against all these claims. Do these parties

0:31:04.520 --> 0:31:05.280
<v Speaker 1>feel like they have.

0:31:05.360 --> 0:31:08.120
<v Speaker 5>Enough evidence to continue going to trial with the social

0:31:08.200 --> 0:31:10.520
<v Speaker 5>media companies or do they want to dismiss it. It's

0:31:10.560 --> 0:31:14.479
<v Speaker 5>expensive to pursue litigation, and so these bow weathers are

0:31:14.480 --> 0:31:16.880
<v Speaker 5>really informative for both sides of whether it's worth it

0:31:17.200 --> 0:31:19.360
<v Speaker 5>to kind of stick it out and keep fighting, but

0:31:19.520 --> 0:31:21.800
<v Speaker 5>there's still a long road ahead for everybody.

0:31:22.200 --> 0:31:26.560
<v Speaker 2>Are the state ags also suing other social media this coalition,

0:31:26.680 --> 0:31:28.600
<v Speaker 2>are they suing other social media companies?

0:31:29.200 --> 0:31:29.920
<v Speaker 5>That's a good question.

0:31:29.960 --> 0:31:33.880
<v Speaker 1>I don't think this coalition specifically is pursuing claims against

0:31:33.880 --> 0:31:38.920
<v Speaker 1>other companies, but there are other ags and other coalitions

0:31:38.920 --> 0:31:39.920
<v Speaker 1>of ags.

0:31:39.520 --> 0:31:41.880
<v Speaker 5>That are pursuing claims against other companies.

0:31:42.080 --> 0:31:45.280
<v Speaker 1>It's a wild web, and I do not envy the

0:31:45.400 --> 0:31:48.680
<v Speaker 1>judges and the lawyers that are responsible.

0:31:48.080 --> 0:31:51.000
<v Speaker 5>For keeping track of it. For the reporters, yeah, let's

0:31:51.000 --> 0:31:52.320
<v Speaker 5>talk about the reporters.

0:31:53.240 --> 0:31:57.520
<v Speaker 2>So madline, what's been happening in Europe and Australia as

0:31:57.520 --> 0:32:01.040
<v Speaker 2>opposed to what's been happening in ungris here, which is

0:32:01.200 --> 0:32:02.520
<v Speaker 2>basically that's right.

0:32:02.560 --> 0:32:05.840
<v Speaker 1>So Australia and Europe, the authorities there have been able

0:32:05.880 --> 0:32:09.560
<v Speaker 1>to pursue those kinds of regulations and here we're seeing

0:32:10.040 --> 0:32:12.840
<v Speaker 1>some of that at the state level. Different states have

0:32:12.920 --> 0:32:17.120
<v Speaker 1>tried to put down at least crackdowns or limitations or

0:32:17.680 --> 0:32:21.360
<v Speaker 1>specifically dealing with this age requirement age verification requirement.

0:32:21.400 --> 0:32:23.240
<v Speaker 5>We're seeing a lot of that, but they've had a

0:32:23.280 --> 0:32:23.760
<v Speaker 5>lot of trouble.

0:32:23.800 --> 0:32:26.760
<v Speaker 1>They've hit roadblocks in the courts, and these companies are

0:32:26.800 --> 0:32:30.720
<v Speaker 1>not you know, accepting regulations silently.

0:32:30.280 --> 0:32:31.440
<v Speaker 5>And they're pushing back.

0:32:31.480 --> 0:32:34.560
<v Speaker 1>And I think that makes this case and the others

0:32:34.960 --> 0:32:37.440
<v Speaker 1>like it so significant is because I think for a

0:32:37.480 --> 0:32:40.360
<v Speaker 1>lot of folks who are on this side of wanting

0:32:40.400 --> 0:32:43.880
<v Speaker 1>to rein in the companies, wanting to kind of push

0:32:43.960 --> 0:32:46.600
<v Speaker 1>back a bit on this what they see as this

0:32:46.720 --> 0:32:50.840
<v Speaker 1>like widespread crisis of addiction and harm, they see the

0:32:50.880 --> 0:32:53.520
<v Speaker 1>courts as kind of their their last stand or a

0:32:53.560 --> 0:32:57.240
<v Speaker 1>really important battleground for this issue, because you know, there's

0:32:57.320 --> 0:32:59.720
<v Speaker 1>attempts at it, but it's so far not been successful

0:33:00.120 --> 0:33:00.920
<v Speaker 1>legislative level.

0:33:02.040 --> 0:33:06.200
<v Speaker 2>Mediceo. Mark Zuckerberg will be called to testify in this trial?

0:33:06.720 --> 0:33:08.520
<v Speaker 2>What about some of the other cases? Will he be

0:33:08.640 --> 0:33:10.160
<v Speaker 2>called in all these cases?

0:33:11.080 --> 0:33:14.200
<v Speaker 1>He's a high profile witness, And it's an interesting, you know,

0:33:14.560 --> 0:33:17.800
<v Speaker 1>always interesting when the heads of these companies come to

0:33:17.880 --> 0:33:20.400
<v Speaker 1>court and have to testify in front of a jury

0:33:20.480 --> 0:33:23.600
<v Speaker 1>of regular people who are seeing this person and kind

0:33:23.600 --> 0:33:25.760
<v Speaker 1>of seeing them out of their element. It always it

0:33:25.800 --> 0:33:28.600
<v Speaker 1>brings out a really interesting side of them. But I

0:33:28.680 --> 0:33:31.320
<v Speaker 1>do think that while they're trying to get him to

0:33:31.360 --> 0:33:33.760
<v Speaker 1>testify in every case. I think it's very unlikely that

0:33:33.840 --> 0:33:36.480
<v Speaker 1>he'll be called back to speak in everything. I think

0:33:37.000 --> 0:33:39.560
<v Speaker 1>in one of the personal injury bell Weather's coming up,

0:33:39.640 --> 0:33:42.840
<v Speaker 1>they're working out agreements to film some of his depositions

0:33:42.880 --> 0:33:45.520
<v Speaker 1>so that they can replay that in court versus calling

0:33:45.600 --> 0:33:49.000
<v Speaker 1>him as a live witness, because not only is it

0:33:49.080 --> 0:33:51.880
<v Speaker 1>you know, he has a very demanding schedule, as as

0:33:51.920 --> 0:33:53.760
<v Speaker 1>so many of us do, but it can be hard

0:33:53.760 --> 0:33:56.720
<v Speaker 1>to coordinate those appearances. But it's also a lot up,

0:33:56.760 --> 0:33:58.560
<v Speaker 1>you know, for the courts too, to have to manage

0:33:58.560 --> 0:34:01.600
<v Speaker 1>having a high profile person there and security needs and

0:34:01.680 --> 0:34:02.240
<v Speaker 1>the life.

0:34:02.480 --> 0:34:05.360
<v Speaker 2>There was no trial today because one of the jurors

0:34:05.440 --> 0:34:07.920
<v Speaker 2>called in sick, but I know you will be back

0:34:08.360 --> 0:34:12.280
<v Speaker 2>at work on Monday reporting for us. Thanks so much, Madeline.

0:34:12.440 --> 0:34:16.600
<v Speaker 2>That's Bloomberg Legal reporter Madelin Mecklberg. And that's it for

0:34:16.600 --> 0:34:19.239
<v Speaker 2>this edition of The Bloomberg Law Show. Remember you can

0:34:19.280 --> 0:34:22.520
<v Speaker 2>always get the latest legal news on our Bloomberg Law Podcast.

0:34:22.800 --> 0:34:25.799
<v Speaker 2>You can find them on Apple Podcasts, Spotify, and at

0:34:26.000 --> 0:34:31.000
<v Speaker 2>www dot Bloomberg dot com, slash podcast Slash Law, And

0:34:31.080 --> 0:34:34.160
<v Speaker 2>remember to tune into The Bloomberg Law Show every weeknight

0:34:34.239 --> 0:34:37.680
<v Speaker 2>at ten pm Wall Street Time. I'm June Grosso and

0:34:37.760 --> 0:34:39.200
<v Speaker 2>you're listening to Bloomberg