FAN V Facebook

Case 3:18-cv-07041 Document 1 Filed 11/20/18 Page 1 of 18
1 CHRISTOPHER D. SULLIVAN (148083)

DIAMOND McCARTHY LLP
2 150 California Street, Suite 2200
San Francisco, California 94111
3 Tel: (415) 692-5200
4 Email: [email protected]
5
DENNIS E. BOYLE (Pro Hac Vice To Be Filed)
6 BLERINA JASARI (Pro Hac Vice To Be Filed)
WHITEFORD, TAYLOR & PRESTON LLP
7 1800 M Street, N.W., Suite 450 N
Washington, D.C., 20036
8
Telephone: (202) 659-6808
9 Facsimile: (202) 327-6175
Email: [email protected]
10 Email: [email protected]
11
Attorneys for FEDERAL AGENCY OF NEWS
12
LLC, EVGENIY LVOVICH ZUBAREV
13
UNITED STATES DISTRICT COURT
14
NORTHERN DISTRICT OF CALIFORNIA
15
FEDERAL AGENCY OF NEWS LLC, Case No.
16 EVGENIY LVOVICH ZUBAREV
17 Plaintiffs,
ORIGINAL COMPLAINT
18 vs.
19
FACEBOOK, INC. JURY TRIAL DEMANDED
20
21 Defendant.
22 Plaintiffs Federal Agency of News LLC (“FAN”) and Evgeniy Lvovich Zubarev, by and
23
through undersigned counsel, file this Complaint against Defendant Facebook, Inc. (“Facebook”),
24
alleging as follows:
25
INTRODUCTION
26
27 1. This complaint asks the court to issue a Judgment for all harms suffered by FAN
28 and Mr. Zubarev based on the acts, errors, omissions, and misconduct of Facebook, to wit:
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ORIGINAL COMPLAINT
blocking access to FAN’s Facebook account, posts, and all content on Facebook’s web based
1
platform or service based on FAN’s and Facebook’s contractual agreement and FAN’s
2
3 constitutionally protected activities.
4 2. FAN is a duly registered corporation which gathers, transmits and supplies

5 domestic and international news reports and other publications of public interest.
6
3. Since in or about December 2014, FAN has operated a Facebook page through
7
which FAN has published its posts and other content for its Facebook followers.
8
4. On April 3, 2018, Facebook deleted FAN’s Facebook account and Page for
9
10 allegedly violating Facebook’s Terms of Service.
11
THE PARTIES
12
5. Plaintiff Federal Agency of News LLC is a corporation organized and existing
13
under the laws of the Russian Federation with its principal place of business in Saint Petersburg,
14
15 the Russian Federation.
16 6. Plaintiff Evgeniy Lvovich Zubarev is an individual currently residing in Saint

17 Petersburg, the Russian Federation. Mr. Zubarev is the sole shareholder and General Director of
18
FAN.
19
7. Defendant Facebook, Inc. is a corporation organized and existing under the laws of
20
the State of Delaware with its principle place of business in Palo Alto, the State of California.
21
22 JURISDICTION AND VENUE
23 8. The United States District Court has subject matter jurisdiction of this action
24 pursuant to 28 U.S.C. 1331. The United States District Court has supplemental jurisdiction
25 pursuant to 28 U.S.C. § 1367 over FAN’s and Mr. Zubarev’s claims under Title II of the Civil
26
Rights Act of 1964, as amended (42 USC Section 2000a, et seq.) and the California Unruh Civil
27
Rights Act (California Civil Code 51, et seq.).
28
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ORIGINAL COMPLAINT
9. Upon information and belief, Facebook is subject to personal jurisdiction by this

1
Court. Facebook has transacted and, at the time of the filing of this Complaint, is continuing to
2
3 transact business within the Northern District of California. Upon information and belief,
4 Facebook has a continuing presence and the requisite minimum contacts with the Northern
5 District of California, such that this venue is a fair and reasonable one. Furthermore, the Northern
6
District of California is the venue required for disputes pursuant to Facebook’s Terms of Service.
7
For all of these reasons, personal jurisdiction exists and venue is proper in this Court under 28
8
U.S.C. §§ 1391 (b)-(c) and 1441 (a) and 28 U.S.C. § 1400(b).
9
10 BACKGROUND
11 I. Facebook and the United States Government Target Russian Websites
12 10. After the 2016 United States presidential election, Facebook began to shut down
13 “inauthentic” Facebook accounts that allegedly sought to inflame social and political tensions in
14
the United States, claiming that their activity was similar or connected to that of Russian
15
Facebook accounts during the 2016 United States presidential election which were allegedly
16
controlled by the Russia-based Internet Research Agency (“IRA”).
17
18 11. The IRA was an agency which allegedly employed fake accounts registered on
19 major social networks, discussion boards, online newspaper sites, and video hosting services to
20 promote the Russian government’s interests in domestic and foreign policy.

21 12. Upon information and belief, the IRA was liquidated on or about December 28,
22
2016.
23
13. The United States government has been complicit in Facebook’s efforts to rid the
24
platform of Russian language accounts.
25
26 14. In a United States Intelligence Community report regarding alleged Russian
27 activities and intentions in the 2016 United States presidential election, published in January
28 2017, the United States Intelligence Community referred to the IRA as an agency of “professional
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ORIGINAL COMPLAINT
trolls” whose likely financier is “a close Putin ally with ties to Russian intelligence.” United
1
States Intelligence Community, Assessing Russian Activities and Intentions in Recent U.S.
2
3 Elections, available at: https://www.dni.gov/files/documents/ICA_2017_01.pdf.
4 15. On September 6, 2017, Facebook’s Chief Security Officer, Alex Stamos,

5 announced that Facebook found approximately $100,000.00 in advertisement spending from June
6
of 2015 to May of 2017 associated with more than 3,000 advertisements in connection with
7
approximately 470 allegedly inauthentic Facebook accounts and Pages. Alex Stamos, An Update
8
On Information Operations on Facebook, available at:
9
10 https://newsroom.fb.com/news/2017/09/information-operations-update/.
11 16. Stamos conceded that Facebook conducted a sweeping search looking for all “ads
12 that might have originated in Russia—even those with very weak signals of a connection and not
13 associated with any known organized effort.” Facebook promptly shared these findings with
14
United States authorities.
15
17. On September 21, 2017, Facebook’s General Counsel, Colin Stretch, stated that
16
Facebook would provide the United States Congress with information related to the 3,000
17
18 advertisements Facebook previously located. Colin Stretch, Facebook to Provide Congress With
19 Ads Linked to Internet Research Agency, available at:
20 https://newsroom.fb.com/news/2017/09/providing-congress-with-ads-linked-to-internet-research-
21 agency/.
22
18. Stretch further explained that Facebook will continue its own review and
23
investigation and do its part “to make sure investigators have the information they need.”
24
19. On or about September 21, 2017, co-founder, chairman and chief executive officer
25
26 of Facebook, Mark Zuckerberg, published a video on Facebook explicitly stating that Facebook is
27 “actively working with the U.S. government on its ongoing investigations into Russian
28
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ORIGINAL COMPLAINT
interference” and providing information to the United States Department of Justice Office of
1
Special Counsel (“Special Counsel”), headed by Robert Mueller.
2
3 20. On April 3, 2018, after Facebook removed more than 270 Russian language
4 accounts and Pages on its web based platform, Stamos published a blog post explaining why
5 Facebook took that action. Stamos stated that the affected accounts and Pages were removed
6
“solely because they were controlled by the IRA—not based on the content.” Alex Stamos,
7
Authenticity Matters: The IRA Has No Place on Facebook, available at:
8
https://newsroom.fb.com/news/2018/04/authenticity-matters/.
9
10 21. On the same day, Zuckerberg published a blog post further explaining Facebook’s
11 actions of removing Russian language accounts and Pages. He stated that “the pages and
12 accounts [they] took down today were removed because they were controlled by the IRA, not
13 based on the content they shared. This particular set of pages and accounts was used to target
14
people in Russia and people speaking Russian in neighboring countries like Azerbaijan,
15
Uzbekistan and Ukraine. In this case, some of the pages [they] removed belong to Russian news
16
organizations that [they] determined were controlled by the Internet Research Agency.” The blog
17
18 post is available at: https://www.facebook.com/zuck/posts/10104771321644971/.
19 22. In addition to removing Facebook accounts and Pages, Facebook released sample
20 Facebook content infographics of affected accounts, including two posts by FAN. A copy of the
21 sample Facebook content infographics are attached hereto and made a part hereof as Exhibit 1.
22
23. Upon information and belief, Facebook removed more than 400 Russian language
23
accounts and Pages in September 2017, more than 270 in April 2018, and more than 600 in
24
August 2018.
25
26
27
28
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ORIGINAL COMPLAINT
II. Facebook blocks FAN—A Legitimate News Agency

1
24. On May 22, 2014, FAN was incorporated in order to satisfy public needs of
2
3 Russian and foreign legal entities and individuals by way of gathering, transmitting and supplying
4 domestic and international news reports and other publications of public interest.
5 25. One of the media that FAN uses to disseminate news, primarily of local interest,
6
throughout the Russian Federation is Facebook. A copy of FAN’s Facebook “Terms of Service”
7
is attached hereto and made a part hereof as Exhibit 2.
8
26. FAN is an independent, authentic and legitimate news agency which publishes
9
10 reports that are relevant and of interest to the general public.
11 27. As of October 2018, FAN is ranked among the Top 35 most visited websites in
12 Russia by LiveInternet, one of the largest Russian internet blogging platforms; among the Top 20
13 by Mail.ru, a Russian internet company which reaches approximately 86% of Russian internet
14
users per month; and among the Top 25 by Rambler, a Russian search engine and one of the
15
biggest Russian web portals.
16
28. Many of FAN’s subscribers are also Facebook users who for at least the past four
17
18 years were able to access FAN through Facebook and who did, in fact, access FAN through
19 Facebook.
20 29. The founder and first General Director of FAN was Aleksandra Yurievna Krylova.
21 The Special Counsel has alleged that Krylova was an employee of the IRA from in or around
22
September 2013 to in or around November 2014. FAN has no knowledge of this allegation and
23
therefore does not know if it is accurate or not.
24
30. Anna Vitalyevna Botneva succeeded Krylova as General Director of FAN, on
25
26 November 17, 2014, and on December 24, 2014, Krylova sold 100% of the company’s shares to
27 Botneva.
28
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ORIGINAL COMPLAINT
31. Since August 2, 2016, Evgeniy Lvovich Zubarev has been the General Director of
1
FAN, and since April 5, 2017, he has been the sole shareholder of the company.
2
3 32. At the time of FAN’s incorporation and until in or about the middle of 2015, FAN
4 and the IRA were located in the same building at 55A Savushkina Street, Saint Petersburg, the
5 Russian Federation, 197183.
6
33. In or about the beginning of 2015, FAN searched for new premises that would be
7
more convenient for its business with regard to a larger space for the office premises. On July 1,
8
2015, FAN moved to a business center at 23J Krasnogvardeiskiy Lane, Saint Petersburg, 197342.
9
10 34. On February 16, 2018, the Special Counsel indicted Krylova alleging that she
11 worked in various capacities to carry out the IRA’s interference operations targeting the United
12 States.
13 35. At the time of Ms. Krylova’s indictment, she had no connection with FAN for
14
more than three years.
15
36. On October 19, 2018, the United States District Court for the Eastern District of
16
Virginia unsealed a criminal complaint against Elena Alekseevna Khusyaynova, alleging
17
18 conspiracy to defraud the United States and Defrauding the United States. In support of the
19 complaint, FBI Special Agent David Holt specifically alleged that Ms. Khusyaynova has been
20 employed by various entities within “Project Lakhta”—which it describes as a Russian

21 interference operation in political and electoral systems targeting populations within the Russian
22
Federation, and other countries, including the United States, members of the European Union, and
23
the Ukraine.
24
37. Special Agent Holt further alleged that Ms. Khusyaynova has been employed by
25
26 various entities within “Project Lakhta”, including the IRA, GlavSet, and FAN.
27
28
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ORIGINAL COMPLAINT
38. FAN has no knowledge of “Project Lakhta”. There is no known business or other
1
organization in the Russian Federation that operates under such name. To the extent it is some
2
3 sort of informal organization, FAN is unaware of its membership, goals or methods of operation.
4 39. FAN is not an entity within “Project Lakhta” and has no relationship with “Project
5 Lakhta”, the IRA or GlavSet. To the contrary, FAN is a news gathering and dissemination
6
organization. In that capacity, FAN gathers news from conventional sources and adheres to
7
journalistic standards in its operations.
8
40. FAN has no involvement in “Project Lakhta” or any other organization, formal or
9
10 informal, whose purpose it is to disseminate false or misleading information or to influence any
11 elections.
12 41. Special Agent Holt alleged that “Project Lakhta” used inauthentic user names to
13 create fictitious Facebook profiles. FAN has no knowledge of these allegation and does not know
14
whether they are true or not.
15
42. In any event, FAN had never created a fictitious name or user account on
16
Facebook or any other social media. FAN’s accounts on Facebook were registered under its own
17
18 name in accordance with Facebook’s user agreement.
19 43. Special Agent Holt also alleged that “Project Lakhta” published false and
20 misleading news articles intended to influence the U.S. and other elections. FAN has no
21 knowledge of these allegations and does not know if they are true or false.
22
44. In any event, FAN has never knowingly created a false or misleading news article
23
and has published all of its news articles under its own name. It has not sought to interfere with
24
the U.S. elections or any other election.
25
26 45. FAN is a legitimate news organization that adheres to journalistic standards in its
27 publications.
28
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ORIGINAL COMPLAINT
46. Ms. Khusyaynova has been FAN’s chief accountant since at least August 2, 2016.
1
As such, Ms. Khusyaynova has been involved in FAN’s day-to-day accounting operations,
2
3 including the purchase of office equipment and furniture and payments for advertising or other
4 business contracts as assigned by Mr. Zubarev in his capacity as the General Director of FAN.
5 47. As the Chief Accountant, Ms. Khusyaynova’s duties are akin to those of a
6
bookkeeper in the United States. She is not an officer of FAN, does not exercise discretionary
7
authority over the editorial content of FAN’s publications and is not aware of what stories are
8
going to be published or not published.
9
10 48. To the best of FAN’s knowledge, Ms. Khusyaynova’s sole employment is with
11 FAN. In fact, she has explicitly stated that FAN is her sole employer and that she does not
12 provide any services to any other entity and denies any involvement with “Project Lakhta”.
13 49. FAN has no reason to believe that Ms. Khusyaynova or any of its employees were
14
providing services to another entity, much less to an entity under the umbrella of “Project
15
Lakhta”.
16
50. The only similarity between FAN and any similar accounts Facebook contends to
17
18 be “inauthentic” and controlled by the IRA is their national origin and that of their members.
19 51. In any event, there was never any evidence that FAN had a direct connection to the
20 IRA, and in fact, it did not have a relationship to the IRA.

21 52. On or about April 3, 2018, the same day that Stamos published his blog post
22
regarding the removal of more than 270 majority Russian language accounts and Pages, FAN
23
learned that the contents of its web page on Facebook were blocked and that its account was
24
deleted.
25
26 53. Subsequently, Facebook submitted a generic e-mail message notifying FAN that
27 its Facebook account was deleted for allegedly violating its Terms of Service. Without further
28 explanation of its decision, Facebook stated that “pages containing threats, offensive or indecent
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ORIGINAL COMPLAINT
content are prohibited”, and that “Pages aimed against another user or group of users, as well as
1
Pages created by an unauthorized user will be deleted.” A copy of the Correspondence sent by
2
3 Facebook is attached hereto and made a part hereof as Exhibit 3.
4 54. In fact, as explained in greater detail below, FAN had not violated the Terms of
5 Service in any way, nor has it violated any U.S. law.
6
55. Despite overwhelming evidence that it was wrong in its conclusions, Facebook
7
continued to and continues to ban FAN from Facebook and access to hundreds of thousands of
8
Russians who obtained their news from FAN.
9
10 56. In fact, Facebook, while claiming to protect the public from “fake news” is
11 actually engaging in censorship and denying FAN subscribers of access to a legitimate news
12 organization.
13 57. Also, since FAN operated primarily within the Russian Federation publishing
14
articles in the Russian language, Facebook’s removal of FAN from Facebook actually interferes
15
with the ability of Russian citizens to gain knowledge of news articles with which Facebook
16
apparently disagrees.
17
18 58. Facebook seeks to dictate news content based upon its own political view point
19 thereby attempting to influence the public media coverage of internal political events in the
20 Russian Federation.
21
COUNT I
22
Federal Agency of News LLC and Zubarev v. Facebook, Inc.
23
First Amendment to the U.S. Constitution (Bivens v. Six Unknown Named Agents of Federal
24 Bureau of Narcotics)
25 59. Paragraphs 1 through 58 are incorporated herein by reference as if fully restated.
26
27
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ORIGINAL COMPLAINT
60. The internet is a public forum available to all person around the world to post or
1
otherwise publish news articles. It also is intended to allow persons around the world, including
2
3 citizens of the United States to access news and opinions from entities around the world.
4 61. Facebook has a pervasive influence with 2.2 billion monthly users. Since there are
5 reportedly 4.2 billion people worldwide with access to the internet, more than one half of the
6
world’s population uses Facebook.
7
62. In the United States, Facebook’s market share is even greater. There are currently
8
a reported 214 million American Facebook users who spend an average of 39 minutes per day on
9
10 Facebook. This represents two-thirds of the population of the United States. For many of these
11 people Facebook is a primary source of information.
12 63. Because of its pervasive presence on the internet, Facebook users constitute a
13 “community”. Facebook creates rules and regulations for the conduct of this community and
14
functions in the same way as a government entity.
15
64. Facebook has the power, and, in fact, does impose punishment, including removal
16
from Facebook, of users who post legitimate news articles and opinions with which Facebook
17
18 disagrees.
19 65. The constitutional protections of the Bill of Rights of the U.S. Constitution
20 therefore apply to Facebook and the actions it takes to curtail free speech on the internet.
21 66. In addition, Facebook also acts at the behest of the government of the United
22
States in its attempts to regulate free speech.
23
67. As Facebook founder and CEO Mark Zuckerberg, published a video on Facebook
24
explicitly stating that Facebook is “actively working with the U.S. government on its ongoing
25
26 investigations into Russian interference”. In addition, it is believed that many of Facebook’s
27 current security personnel are former members of the U.S. intelligence and law enforcement
28 communities.
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ORIGINAL COMPLAINT
68. The U.S. government had long indicated an interest in restricting the access of
1
certain Russian actors to the internet.
2
3 69. While the U.S. government and Facebook may have a legitimate interest in
4 enforcing laws against identity theft and unlawful interference in U.S. elections, they may not
5 engage in content-based restrictions of free speech.
6
70. FAN has not engaged in identity theft, nor has it attempted to unlawfully interfere
7
in U.S. elections. To the contrary, it has published legitimate news stories in its own name.
8
71. In fact, the U.S. government has not taken any actions whatsoever against FAN.
9
10 Neither it nor its owner have been indicted by the U.S. Department of Justice or any other state or
11 federal agency. Neither FAN nor its owner are listed as a “Specially Designated National” by the
12 U.S. Department of the Treasury.

13 72. There is, therefore, no reason to believe that FAN engaged in any illegal or any
14
conduct that violated Facebook’s Terms of Service or any U.S. law.
15
73. By banning FAN from Facebook, Facebook engaged in content based restrictions
16
of free speech.
17
18 74. FAN’s publications and posts on Facebook were the exercise of its constitutionally
19 protected freedom of speech to inform the general public of historical and current events in
20 politics, entertainment and other areas of public interest.

21 75. Facebook violated FAN’s First Amendment rights by deleting the contents of
22
FAN’s Facebook Page and blocking FAN’s access to its Facebook account.
23
76. Facebook took action against FAN in an effort to silence and deter FAN’s free
24
speech.
25
26 77. Facebook violated FAN’s First Amendment rights solely on account of its and its
27 members’ national origin.
28
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ORIGINAL COMPLAINT
78. As a result of Facebook’s unlawful conduct, FAN has suffered substantial

1
damages, including, but not limited to:
2
3 a. FAN was deprived of freedom of speech;
4 b. FAN was foreclosed from future opportunities to reach its subscribers on social
5 media platforms, including Facebook;
6
c. FAN lost status and prestige amongst its Facebook followers, the general
7
public and the journalistic community;
8
d. FAN suffered reputational harm; and,
9
10 e. These injuries are continuing in nature requiring injunctive relief.
11 WHEREFORE, the Plaintiffs, Federal Agency of News LLC and Evgeniy Lvovich
12 Zubarev, demand judgment against Facebook Inc. for damages and injunctive relief as set forth
13 below.
14
COUNT II
15
16
Damages Under Title II of the U.S. Civil Rights Act of 1964 and
17
18 42 U.S.C. Section 1983
19 79. Paragraphs 1 through 78 are incorporated herein by reference as if fully restated.
20 80. Facebook operates a place of public accommodation as a social networking service

21 that is internet-based but with physical headquarters and locations of business in the State of
22
California.
23
81. All decisions, including discriminatory decisions, undertaken by Facebook were
24
made at Facebook’s headquarters in the State of California.
25
26 82. FAN is a Russian business entity wholly owned by a citizen of the Russian
27 Federation. All or nearly all of its users are Russians or of Russian descent.
28
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ORIGINAL COMPLAINT
83. Facebook has targeted Russians for expulsion from Facebook based upon national
1
origin.
2
3 84. Facebook willfully, intentionally, purposefully, knowingly, recklessly, and/or
4 negligently deprived FAN and its members of the full and equal enjoyment of the goods, services,
5 facilities, privileges, advantages, and accommodations of Facebook’s internet-based social
6
networking service as a place of public accommodation, as defined in 42 U.S.C. § 2000a.
7
85. Facebook did so deprive FAN and its members with discrimination and
8
segregation on the ground of national origin.
9
10 86. Facebook’s internet-based social networking service constitutes “commerce” as
11 defined in 42 U.S.C. § 2000a.
12 87. As a result of Facebook’s discriminatory conduct, FAN has lost subscribers and
13 revenues from its lost subscribers.
14
88. The injuries suffered by FAN and Mr. Zubarev are continuing in nature requiring
15
injunctive relief.
16
WHEREFORE, the Plaintiffs, Federal Agency of News LLC and Evgeniy Lvovich
17
19 below.
20 COUNT III
21
22
Damages Under The California Unruh Civil Rights Act
23
89. Paragraphs 1 through 88 are incorporated herein by reference as if fully restated.
24
90. Facebook denied FAN full and equal accommodations, advantages, facilities,
25
26 privileges, and services because of its national origin.
27 91. Facebook denied, aided or incited a denial of, discriminated against or made a
28 distinction that denied the full and equal accommodations, advantages, facilities, privileges, and
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ORIGINAL COMPLAINT
services to FAN and its members. Specifically, Facebook has denied access to Facebook internet
1
connections and the Facebook “community” based upon Russian nationality and/or Russian
2
3 ethnicity. The national origin and ethnicity of FAN, its owner and its subscribers were motivating
4 factors behind Facebook’s actions.

5 92. As a result of Facebook’s actions, FAN has suffered harm and continues to suffer
6
harm as more fully described in Paragraph 78 above.
7
8
Zubarev, demand judgment against Facebook Inc. for damages and injunctive relief as set forth
9
10 below.
11 COUNT IV
12 Federal Agency of News LLC and Zubarev v. Facebook, Inc.

13 Breach of Contract
14
15
94. FAN and Facebook had a contract (Terms of Service) for the use of Facebook’s
16
social networking site.
17
18 95. In accordance with the Contract, Facebook was obligated to provide access to
19 Facebook’s platform in exchange for FAN properly completing the application and abiding by the
20 Terms of Service.
21 96. FAN complied with the terms of the Contract by properly registering with
22
Facebook, paying any fees that were due and complying with all applicable terms of service.
23
97. At no time did FAN violate the terms of the contract.
24
98. Despite its contractual obligation to provide FAN with access to Facebook.
25
26 Facebook breached the contract by removing FAN’s Facebook account and blocking FAN’s
27 content without a legitimate reason.

28
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ORIGINAL COMPLAINT
99. Facebook, in removing the account and blocking FAN, cited its alleged
1
relationship with the IRA. This reason, however, was not a legitimate reason in that FAN had no
2
3 relationship whatsoever with the IRA, and Facebook knew that FAN had no relationship with the
4 IRA.
5 100. As a result for Facebook’s breach, FAN has lost subscribers and revenues from
6
subscriber services. FAN subscribers have also lost access to a legitimate news source.
7
101. FAN was damaged thereby as more fully described in Paragraph 78 above.
8
9
11 below.
12 COUNT V
14
Breach of Implied Covenant of Good Faith and Fair Dealing
15
16
103. FAN and Facebook entered into a contract.
17
18 104. The Contract between FAN and Facebook contained an implied covenant of good
19 faith and fair dealing.
20 105. FAN complied with its contractual obligations in that FAN did not violate the
21 Terms of Service and terms of Community Standards as set by Facebook;
22
106. Facebook breached its implied covenant of good faith and fair dealings by
23
blocking FAN’s access to Facebook users and FAN subscribers.
24
107. As a result for Facebook’s breach, FAN has lost subscribers and revenues from
25
26 subscriber services. FAN subscribers have also lost access to a legitimate news source.
27 108. FAN was damaged thereby as more fully described in Paragraph 78 above.
28
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ORIGINAL COMPLAINT
1
2
3 below.
4 COUNT V
6
Breach of Implied Covenant of Good Faith and Fair Dealing
7
8
110. FAN maintained subscription agreements with tens of thousands of Russian
9
10 citizens many of whom utilized Facebook as their primary means of accessing FAN and its news
11 content.
12 111. According to the terms of these subscription agreements, FAN was obligated to
13 make its news content available to its subscribers, and the subscribers were obligated to provide
14
valuable consideration to FAN for its service.
15
112. In addition, Facebook also markets itself as a platform for companies like FAN to
16
obtain new subscribers or customers.
17
18 113. Facebook was aware that FAN was a news organization with subscribers that was
19 using FAN to reach its already existing subscribers as well as new subscribers.
20 114. By engaging in conduct that has interfered with FAN’s ability to provide service to
21
existing subscribers and preventing it from reaching new subscribers, Facebook has made its
22
performance under the subscriber agreement expensive or difficult or impossible.
23
115. Facebook intended to interfere with FAN’s access to its subscribers and thereby
24
disrupt and damage its business.
25
26 116. As a result of Facebook’s actions, FAN has suffered substantial and irreparable
27 harm
28 117. The conduct of Facebook was a substantial factor in bringing about this harm.
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ORIGINAL COMPLAINT
1
2
3 below.
4 PRAYER FOR RELIEF

5 WHEREFORE, Plaintiffs, Federal Agency of News LLC and Evgeniy Lvovich Zubarev,
6
respectfully request judgment as follows:
7
A. That this Court order a temporary and permanent injunction preventing Facebook
8
Inc. from blocking public access to Federal Agency of News LLC’s account on Facebook’s social
9
10 networking service;
11 B. That this Court award nominal and compensatory damages to Federal Agency of
12 News LLC;
13 C. That this Court award punitive damages to Federal Agency of News LLC;
14
D. That this Court award Federal Agency of News LLC’s costs and expenses of this
15
action, including reasonable attorney’s fees, in accordance with 42 U.S.C. § 1988 and other
16
applicable law; and,
17
18 E. Any other action which this Court deems appropriate.
19
20
21 Dated: November 20, 2018 Respectfully Submitted,

22
23 /s/ Christopher D. Sullivan

Christopher D. Sullivan
24 Dennis E. Boyle
Blerina Jasari
25
Counsel for Plaintiff
26
27
28
-18-
ORIGINAL COMPLAINT
Case 3:18-cv-07041 Document 1-1 Filed 11/20/18 Page 1 of 5
EXHIBIT 2
Facebook Page 1 of 5
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Our Statement of Rights and Responsibilities is changing to our Terms of Service. You can view our previous Statement of Rights and Responsibilities here.
Terms of Service
Welcome to Facebook!
These Terms govern your use of Facebook and the products, features, apps, services, technologies and software that we offer (the
Facebook Products or Products), except where we expressly state that separate terms (and not these) apply.
1. Our Services
Our mission is to give people the power to build community and bring the world closer together. To help advance this mission, we
provide the products and services described below to you:
◾ Provide a personalised experience for you: Your experience on Facebook is unlike anyone else's: from the posts, stories,
events, ads and other content that you see in News Feed or our video platform to the Pages that you follow and other features that
you might use, such as Trending, Marketplace and search. We use the data we have – for example, about the connections you
make, the choices and settings you select, and what you share and do on and off our Products – to personalise your experience.
◾ Connect you with people and organisations that you care about: We help you find and connect with people, groups,
businesses, organisations and others that matter to you across the Facebook Products you use. We use the data that we have to
make suggestions for you and others – for example, groups to join, events to attend, Pages to follow or send a message to, shows
to watch and people who you may want to become friends with. Stronger ties make for better communities, and we believe that our
services are most useful when people are connected to people, groups and organisations that they care about.
◾ Empower you to express yourself and communicate about what matters to you: There are many ways to express yourself on
Facebook and to communicate with friends, family and others about what matters to you – for example, sharing status updates,
photos, videos and stories across the Facebook Products that you use, sending messages to a friend or several people, creating
events or groups, or adding content to your profile. We have also developed, and continue to explore, new ways for people to use
technology, such as augmented reality and 360 video to create and share more expressive and engaging content on Facebook.
◾ Help you discover content, products and services that may interest you: We show you ads, offers and other sponsored
content to help you discover content, products and services that are offered by the many businesses and organisations that use
Facebook and other Facebook Products. Our partners pay us to show their content to you, and we design our services so that the
sponsored content you see is as relevant and useful to you as everything else that you see on our Products.
◾ Combat harmful conduct, and protect and support our community: People will only build community on Facebook if they feel
safe. We employ dedicated teams around the world and develop advanced technical systems to detect misuse of our Products,
harmful conduct towards others and situations where we may be able to help support or protect our community. If we learn of
content or conduct like this, we will take appropriate action – for example, offering help, removing content, blocking access to
certain features, disabling an account or contacting law enforcement. We share data with other Facebook Companies when we
detect misuse or harmful conduct by someone using one of our Products.
◾ Use and develop advanced technologies to provide safe and functional services for everyone: We use and develop
advanced technologies such as artificial intelligence, machine learning systems and augmented reality so that people can use our
Products safely regardless of physical ability or geographic location. For example, technology like this helps people who have
visual impairments understand what or who is in photos or videos shared on Facebook or Instagram. We also build sophisticated
network and communication technology to help more people connect to the Internet in areas with limited access. And we develop
automated systems to improve our ability to detect and remove abusive and dangerous activity that may harm our community and
the integrity of our Products.
https://www.facebook.com/legal/terms/plain_text_terms 10/15/2018
◾ Research ways to make our services better: We engage in research and collaborate with others to improve our Products. One
way we do this is by analysing the data we have and understanding how people use our Products. You can learn more about some
of our research efforts.
◾ Provide consistent and seamless experiences across the Facebook Company Products: Our Products help you find and
connect with people, groups, businesses, organisations and others that are important to you. We design our systems so that your
experience is consistent and seamless across the different Facebook Company Products that you use. For example, we use data
about the people you engage with on Facebook to make it easier for you to connect with them on Instagram or Messenger, and we
enable you to communicate with a business that you follow on Facebook through Messenger.
◾ Enable global access to our services: To operate our global service, we need to store and distribute content and data in our data
centres and systems around the world, including outside your country of residence. This infrastructure may be operated or
controlled by Facebook, Inc., Facebook Ireland Limited or its affiliates.
2. Our Data Policy and your privacy choices

To provide these services, we must collect and use your personal data. We detail our practices in the Data Policy, which you must
agree to in order to use our Products.
We also encourage you to review the privacy choices that you have in your settings.
3. Your commitments to Facebook and our community

We provide these services to you and others to help advance our mission. In exchange, we need you to make the following
commitments:
1. Who can use Facebook

When people stand behind their opinions and actions, our community is safer and more accountable. For this reason, you
must:
◾ Use the same name that you use in everyday life.
◾ Provide accurate information about yourself.
◾ Create only one account (your own) and use your timeline for personal purposes.
◾ Not share your password, give access to your Facebook account to others or transfer your account to anyone else (without
our permission).
We try to make Facebook broadly available to everyone, but you cannot use Facebook if:
◾ You are under 13 years old.
◾ You are a convicted sex offender.
◾ We've previously disabled your account for breaches of our Terms or Policies.
◾ You are prohibited from receiving our products, services or software under applicable laws.
2. What you can share and do on Facebook

We want people to use Facebook to express themselves and to share content that is important to them, but not at the expense
of the safety and well-being of others or the integrity of our community. You therefore agree not to engage in the conduct
described below (or to facilitate or support others in doing so):
1. You may not use our Products to do or share anything:
◾ That breaches these Terms, our Community Standards and other Terms and Policies that apply to your use of
Facebook.
◾ That is unlawful, misleading, discriminatory or fraudulent.
◾ That infringes or breaches someone else's rights.
2. You may not upload viruses or malicious code, or do anything that could disable, overburden or impair the proper working
or appearance of our Products.
3. You may not access or collect data from our Products using automated means (without our prior permission) or attempt to
access data that you do not have permission to access.
We can remove content that you share in breach of these provisions and, if applicable, we may take action against your
account, for the reasons described below. We may also disable your account if you repeatedly infringe other people's
intellectual property rights.
To help support our community, we encourage you to report content or conduct that you believe breaches your rights (including
intellectual property rights) or our terms and policies.
3. The permissions you give us

We need certain permissions from you to provide our services:
1. Permission to use content that you create and share: You own the content that you create and share on Facebook and
the other Facebook Products you use, and nothing in these Terms takes away the rights that you have to your own
content. You are free to share your content with anyone else, wherever you want. To provide our services, however, we
need you to give us some legal permissions to use this content.
Specifically, when you share, post or upload content that is covered by intellectual property rights (e.g. photos or videos)
on or in connection with our Products, you grant us a non-exclusive, transferable, sub-licensable, royalty-free and
worldwide licence to host, use, distribute, modify, run, copy, publicly perform or display, translate and create derivative
works of your content (consistent with your privacy and application settings). This means, for example, that if you share a
photo on Facebook, you give us permission to store, copy and share it with others (again, consistent with your settings)
such as service providers that support our service or other Facebook Products that you use.
You can end this licence at any time by deleting your content or account. You should know that, for technical reasons,
any content that you delete may persist for a limited period of time in backup copies (though it will not be visible to other
users). In addition, content that you delete may continue to appear if you have shared it with others and they have not
deleted it.
2. Permission to use your name, profile picture and information about your actions with ads and sponsored content: You
give us permission to use your name and profile picture and information about actions that you have taken on Facebook
next to or in connection with ads, offers and other sponsored content that we display across our Products, without any
compensation to you. For example, we may show your friends that you are interested in an advertised event or have liked
a Page created by a brand that has paid us to display its ads on Facebook. Ads like this can be seen only by people who
have your permission to see the actions that you've taken on Facebook. You can learn more about your ad settings and
preferences.
If you are under the age of eighteen (18), you represent that a parent or legal guardian also agrees to this section on your
behalf. (This language is included pursuant to a court-approved legal settlement.)
3. Permission to update software that you use or download: If you download or use our software, you give us permission to
download and install upgrades, updates and additional features to improve, enhance and further develop it.
4. Limits on using our intellectual property

If you use content covered by intellectual property rights that we have and make available in our Products (for example,
images, designs, videos or sounds that we provide, which you add to content that you create or share on Facebook), we retain
all rights to that content (but not yours). You can only use our copyrights or trademarks (or any similar marks) as expressly
permitted by our Brand Usage Guidelines or with our prior written permission. You must obtain our written permission (or
permission under an open source licence) to modify, create derivative works of, decompile or otherwise attempt to extract
source code from us.
4. Additional provisions
1. Updating our Terms
We work constantly to improve our services and develop new features to make our Products better for you and our community.
As a result, we may need to update these Terms from time to time to accurately reflect our services and practices. Unless
otherwise required by law, we will notify you before we make changes to these Terms and give you an opportunity to review
them before they go into effect. Once any updated Terms are in effect, you will be bound by them if you continue to use our
Products.
We hope that you will continue using our Products, but if you do not agree to our updated Terms and no longer want to be a
part of the Facebook community, you can delete your account at any time.
2. Account suspension or termination

We want Facebook to be a place where people feel welcome and safe to express themselves and share their thoughts and
ideas.
If we determine that you have breached our terms or policies, we may take action against your account to protect our
community and services, including by suspending access to your account or disabling it. We may also suspend or disable your
account if you create risk or legal exposure for us or when we are permitted or required to do so by law. Where appropriate, we
will notify you about your account the next time you try to access it. You can learn more about what you can do if your account
has been disabled.
If you delete or we disable your account, these Terms shall terminate as an agreement between you and us, but the following
provisions will remain in place: 3, 4.2-4.5
3. Limits on liability
We work hard to provide the best Products we can and to specify clear guidelines for everyone who uses them. Our Products,
however, are provided "as is", and we make no guarantees that they will always be safe, secure or error-free, or that they will
function without disruptions, delays or imperfections. To the extent permitted by law, we also DISCLAIM ALL WARRANTIES,
WHETHER EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT. We do not control or direct what people and others do or say,
and we are not responsible for their actions or conduct (whether online or offline) or any content that they share (including
offensive, inappropriate, obscene, unlawful and other objectionable content).
We cannot predict when issues may arise with our Products. Accordingly, our liability shall be limited to the fullest extent
permitted by applicable law, and under no circumstances will we be liable to you for any lost profits, revenues, information or
data, or consequential, special, indirect, exemplary, punitive or incidental damages arising out of or related to these Terms or
the Facebook Products, even if we have been advised of the possibility of such damages. Our aggregate liability arising out of
or relating to these Terms or the Facebook Products will not exceed the greater of USD 100 or the amount you have paid us in
the past twelve months.
4. Disputes
We try to provide clear rules so that we can limit or hopefully avoid disputes between you and us. If a dispute does arise,
however, it's useful to know up front where it can be resolved and what laws will apply.
For any claim, cause of action or dispute that you have against us, which arises out of or relates to these Terms or the
Facebook Products ("claim"), you agree that it will be resolved exclusively in the US District Court for the Northern District of
California or a state court located in San Mateo County. You also agree to submit to the personal jurisdiction of either of these
courts for the purpose of litigating any such claim, and that the laws of the State of California will govern these Terms and any
claim, without regard to conflict of law provisions.
5. Other
1. These Terms (formerly known as the Statement of Rights and Responsibilities) make up the entire agreement between
you and Facebook, Inc. regarding your use of our Products. They supersede any prior agreements.
2. Some of the Products we offer are also governed by supplemental Terms. If you use any of those Products, supplemental
terms will be made available and will become part of our agreement with you. For instance, if you access or use our
Products for commercial or business purposes, such as buying ads, selling products, developing apps, managing a group
or Page for your business, or using our measurement services, you must agree to our Commercial Terms. If you post or
share content containing music, you must comply with our Music Guidelines. To the extent that any supplemental Terms
conflict with these Terms, the supplemental Terms shall govern to the extent of the conflict.
3. If any portion of these Terms is found to be unenforceable, the remaining portion will remain in full force and effect. If we
fail to enforce any of these Terms, it will not be considered a waiver. Any amendment to or waiver of these Terms must
be made in writing and signed by us.
4. You will not transfer any of your rights or obligations under these Terms to anyone else without our consent.
5. You may designate a person (called a legacy contact) to manage your account if it is memorialised. Only your legacy
contact or a person who you have identified in a valid will or similar document expressing clear consent to disclose your
content upon death or incapacity will be able to seek disclosure from your account after it is memorialised.
6. These Terms do not confer any third-party beneficiary rights. All of our rights and obligations under these Terms are
freely assignable by us in connection with a merger, acquisition or sale of assets, or by operation of law or otherwise.
7. You should know that we may need to change the username for your account in certain circumstances (for example, if
someone else claims the username and it appears unrelated to the name that you use in everyday life).
8. We always appreciate your feedback and other suggestions about our products and services. But you should know that
we may use them without any restriction or obligation to compensate you, and we are under no obligation to keep them
confidential.
9. We reserve all rights not expressly granted to you.
5. Other terms and policies that may apply to you

◾ Community Standards: These guidelines outline our standards regarding the content that you post to Facebook and your activity on
Facebook and other Facebook Products.
◾ Commercial Terms: These Terms apply if you also access or use our Products for any commercial or business purpose, including
advertising, operating an app on our Platform, using our measurement services, managing a group or a Page for a business or
selling goods or services.
◾ Advertising Policies: These Policies specify what types of ad content are allowed by partners who advertise across the Facebook
Products.
◾ Self-Serve Ad Terms: These Terms apply when you use self-serve advertising interfaces to create, submit or deliver advertising or
other commercial or sponsored activity or content.
◾ Pages, Groups and Events Policy: These guidelines apply if you create or administer a Facebook Page, group or event, or if you
use Facebook to communicate or administer a promotion.
◾ Facebook Platform Policy: These guidelines outline the Policies that apply to your use of our platform (for example, for developers
or operators of a platform application or website or if you use social plugins).
◾ Developer Payment Terms: These Terms apply to developers of applications that use Facebook Payments.
◾ Community Payment Terms: These Terms apply to payments made on or through Facebook.
◾ Commerce Policies: These guidelines outline the Policies that apply when you offer products and services for sale on Facebook.
◾ Facebook Brand Resources: These guidelines outline the Policies that apply to the use of Facebook trademarks, logos and
screenshots.
◾ Music Guidelines: These guidelines outline the Policies that apply if you post or share content containing music on Facebook.
Date of last revision: 19 April 2018
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Facebook © 2018
EXHIBIT 3
Translated from Russian
Appendix 2: Message on blockage of Facebook public group

[Translation of main texts of screenshots]
3d of April
Hello,
Your Page Federal Agency of News [Федеральное агентство новостей] has been deleted for
violating our Terms of Service. Facebook page is a special presentation used for business or
advertising purposes. Please note that pages containing threats, offensive or indecent content are
prohibited. Additionally, Pages aimed against another user or group of users, as well as Pages
created by an unauthorized user will be deleted. If your Page has been deleted for one of the
foregoing reasons, it will not be restored. If you continue to use the site’s function
inappropriately, your account could be blocked.
The Facebook Team
3d of April
Hello,
Your Page Politics Today [Политика Сегодня] has been deleted for violating our Terms of
Service. Facebook page is a special presentation used for business or advertising purposes. Please
note that pages containing threats, offensive or indecent content are prohibited. Additionally,
Pages aimed against another user or group of users, as well as Pages created by an unauthorized
user will be deleted. If your Page has been deleted for one of the foregoing reasons, it will not be
restored. If you continue to use the site’s function inappropriately, your account could be blocked.
The Facebook Team
3d of April
Hello,
Your Page Federal Agency of News [Федеральное агентство новостей] has been deleted for
violating our Terms of Service. Facebook page is a special presentation used for business or
advertising purposes. Please note that pages containing threats, offensive or indecent content are
prohibited. Additionally, Pages aimed against another user or group of users, as well as Pages
created by an unauthorized user will be deleted. If your Page has been deleted for one of the
foregoing reasons, it will not be restored. If you continue to use the site’s function
inappropriately, your account could be blocked.
The Facebook Team
[Stamp: TRUE COPY * GENERAL

DIRECTOR E.L. ZUBAREV]
[Signature]
[Seal: LIMITED LIABILITY
COMPANY * ST. PETERSBURG *
Federal Agency of News
INN
OGRN ]

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Case 3:18-cv-07041 Document 1 Filed 11/20/18 Page 1 of 18

1 CHRISTOPHER D. SULLIVAN (148083)

3 constitutionally protected activities.

4 2. FAN is a duly registered corporation which gathers, transmits and supplies

10 allegedly violating Facebook’s Terms of Service.

15 the Russian Federation.

16 6. Plaintiff Evgeniy Lvovich Zubarev is an individual currently residing in Saint

22 JURISDICTION AND VENUE

9. Upon information and belief, Facebook is subject to personal jurisdiction by this

11 I. Facebook and the United States Government Target Russian Websites

20 promote the Russian government’s interests in domestic and foreign policy.

26 14. In a United States Intelligence Community report regarding alleged Russian

3 Elections, available at: https://www.dni.gov/files/documents/ICA_2017_01.pdf.

4 15. On September 6, 2017, Facebook’s Chief Security Officer, Alex Stamos,

19 Ads Linked to Internet Research Agency, available at:

18 post is available at: https://www.facebook.com/zuck/posts/10104771321644971/.

II. Facebook blocks FAN—A Legitimate News Agency

10 reports that are relevant and of interest to the general public.

20 employed by various entities within “Project Lakhta”—which it describes as a Russian

10 informal, whose purpose it is to disseminate false or misleading information or to influence any

18 name in accordance with Facebook’s user agreement.

20 IRA, and in fact, it did not have a relationship to the IRA.

3 Facebook is attached hereto and made a part hereof as Exhibit 3.

11 people Facebook is a primary source of information.

26 investigations into Russian interference”. In addition, it is believed that many of Facebook’s

12 U.S. Department of the Treasury.

20 politics, entertainment and other areas of public interest.

27 members’ national origin.

78. As a result of Facebook’s unlawful conduct, FAN has suffered substantial

3 a. FAN was deprived of freedom of speech;

10 e. These injuries are continuing in nature requiring injunctive relief.

18 42 U.S.C. Section 1983

19 79. Paragraphs 1 through 78 are incorporated herein by reference as if fully restated.

20 80. Facebook operates a place of public accommodation as a social networking service

3 84. Facebook willfully, intentionally, purposefully, knowingly, recklessly, and/or

10 86. Facebook’s internet-based social networking service constitutes “commerce” as

11 defined in 42 U.S.C. § 2000a.

26 privileges, and services because of its national origin.

4 factors behind Facebook’s actions.

12 Federal Agency of News LLC and Zubarev v. Facebook, Inc.

27 content without a legitimate reason.

19 faith and fair dealing.

4 PRAYER FOR RELIEF

18 E. Any other action which this Court deems appropriate.

21 Dated: November 20, 2018 Respectfully Submitted,

23 /s/ Christopher D. Sullivan

Join or log in to Facebook

2. Our Data Policy and your privacy choices

3. Your commitments to Facebook and our community

1. Who can use Facebook

2. What you can share and do on Facebook

◾ That is unlawful, misleading, discriminatory or fraudulent.

◾ That infringes or breaches someone else's rights.

3. The permissions you give us

4. Limits on using our intellectual property

2. Account suspension or termination

9. We reserve all rights not expressly granted to you.

5. Other terms and policies that may apply to you

Date of last revision: 19 April 2018