(The opinions expressed here are those of the author, a
columnist for Reuters.)
By Jenna Greene
August 18 (Reuters) - Mark Zuckerberg has better things
to do than sit for a deposition.
Or so lawyers for Meta Platforms ( META ) suggest in a pending
petition to the 9th U.S. Circuit Court of Appeals, objecting to
the billionaire CEO being forced to give testimony in a proposed
privacy class action.
The company invokes a controversial principle known as the
apex doctrine to claim Zuckerberg should be spared the hot seat,
arguing that he has no "unique" knowledge of the case, and
plaintiffs' lawyers could get the same information from
lower-level Meta employees.
Plaintiffs want to question the CEO about allegations that
Meta obtained private health information from millions of
Facebook users without their knowledge or consent via its Pixel
tracking tool. The claims echo those in a class action by users
of fertility tracking app Flo Health, where a San Francisco jury
on August 1 found Meta violated the California Invasion of
Privacy Act. Damages are yet to be determined, but as I
previously noted, the total could be huge.
In June, U.S. District Judge William Orrick in San Francisco
agreed with U.S. Magistrate Judge Virginia DeMarchi and gave the
plaintiffs a green light to depose Zuckerberg. However, the
judge limited the session to a maximum of three hours and
narrowed the scope of allowable questions to center on a consent
decree Meta entered into with the Federal Trade Commission
involving the Flo app and Zuckerberg's role as a final
decisionmaker on privacy-related matters.
A Meta spokesperson did not respond to a request for
comment. The company in court papers has denied wrongdoing in
both cases.
Plaintiffs' lawyers from Gibbs Mura declined to comment for
this column.
Defense counsel from Latham & Watkins and Gibson Dunn &
Crutcher in July asked the 9th Circuit for a writ of mandamus to
nix the deposition, calling it "a critically important issue of
first impression" for the San Francisco-based court.
Mandamus is a "drastic and extraordinary" request,
plaintiffs' lawyers say, arguing that the trial court judge in
allowing the deposition committed no clear error to justify such
relief.
But defense counsel say there's a larger issue at stake than
a one-off deposition. Multi-billion-dollar companies like Meta
face scores of lawsuits, and their leaders have "uniquely
crucial and demanding job duties, as well as limited time," they
wrote. That makes being called to testify especially burdensome.
District courts within the sprawling 9th Circuit are "deeply
divided" on exactly when and how to properly apply the apex
doctrine, Meta lawyers said in asking for appellate guidance.
Indeed, spats over deposing CEOs have arisen regularly in
court within the 9th Circuit and beyond in cases involving
companies including Microsoft ( MSFT ), Tesla, Uber ( UBER ), and Alphabet. In
some instances, execs were let off the hook, while others were
compelled to sit for depositions.
Such demands can be more about harassment than a legitimate
need for information, the Meta lawyers claim, arguing that
deposition testimony is only justified if the executive has
unique, first-hand knowledge that cannot be obtained elsewhere.
Here, they assert, the bid to depose Zuckerberg is "a ploy
to increase the burdens of this litigation and obtain perceived
leverage."
Plaintiffs' lawyers counter that state and federal
procedural rules already allow subpoenaed witnesses to contest
demands for their testimony. There should be "no special
dispensation from civil discovery for corporate executives
simply because of their status as titans of industry," wrote
lawyers from Gibbs Mura; Simmons Hanly Conroy; Cohen Milstein
Sellers & Toll; Kiesel Law; and Terrell Marshall Law Group.
The underlying litigation began in 2022, when plaintiffs
alleged Meta violated a federal wiretap law and a California
privacy law, as well as its own contractual promises governing
user privacy on Facebook, my Reuters colleague Jonathan Stempel
reported.
According to the complaint, Meta Pixel -- an internet
analytics tool that Meta makes available to website developers
-- provided sensitive information about users' health to Meta
when they logged into patient portals where it had been
installed, enabling Meta to make money from targeted
advertising.
Meta in court papers has responded that it should not be
held liable if certain healthcare providers allegedly misused
Pixel, "a publicly available tool that Meta did not implement or
configure on the providers' websites."
Plaintiffs' lawyers, in justifying their request to question
Zuckerberg, argue that from the start he's been implicated in
the case. "He had personal knowledge of Meta's intent to receive
this information," they allege, "and he knew about and played a
key role in Meta's collection of sensitive health data."
The appeals court has not indicated when it will rule on the
petition, but Meta lawyers notified the district court that
Zuckerberg's deposition may proceed this month in Palo Alto if
the 9th Circuit denies its mandamus petition by August 21.