In an explosive 60 Minutes Interview, former Facebook employee Frances Haugen acted as "whistleblower" exposing her former employer's internal research on hate speech, divisiveness, and more, with the claim that the same was a violation of US securities laws.

But did Ms. Haugen make a case that such laws were actually violated? How do whistleblower protections work, and will they be afforded if a claim stretches the boundary of what may or may not be illegal activity? And how does good old CDA Section 230 enter into the equation?

There's a difference between whistleblowing and exposing what you don't like...in Virtual Legality.

#Facebook #WhistleBlower #FrancesHaugen

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CHAPTERS

00:00 Introduction
01:41 The 60 Minutes Interview
14:52 SEC Complaints and Whistleblower Protection
25:52 Facebook's Response
32:07 CDA 230's Liability Shield
35:07 Whistleblower Awards
39:10 The Defend Trade Secrets Act
44:05 Conclusion

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Discussed in this Episode:

"Whistleblower: Facebook is misleading the public on progress against hate speech, violence, misinformation"
CBS News Website - October 4, 2021
https://www.cbsnews.com/news/facebook-whistleblower-frances-haugen-misinformation-public-60-minutes-2021-10-03/

"Employment of manipulative and deceptive devices."
17 CFR 240.10b-5
https://www.law.cornell.edu/cfr/text/17/240.10b-5

Facebook Form 10-K
FY 2020
https://d18rn0p25nwr6d.cloudfront.net/CIK-0001326801/4dd7fa7f-1a51-4ed9-b9df-7f42cc3321eb.pdf

"Securities whistleblower incentives and protection"
15 USC 78u-6
https://www.law.cornell.edu/uscode/text/15/78u-6#b

"Whistleblower status, award eligibility, confidentiality, and retaliation protections."
17 CFR 240.21F-2
https://www.law.cornell.edu/cfr/text/17/240.21F-2

"Staff communications with individuals reporting possible securities law violations."
17 CFR 240.21F-17
https://www.law.cornell.edu/cfr/text/17/240.21F-17

"SEC: Companies Cannot Stifle Whistleblowers in Confidentiality Agreements"
SEC Press Release - April 1, 2015
https://www.sec.gov/news/pressrelease/2015-54.html

Guggenheim Securities Action
SEC (June 23, 2021)
https://www.sec.gov/litigation/admin/2021/34-92237.pdf

"Facebook's response to 60 Minutes' report, 'The Facebook Whistleblower'"
CBS News Website - October 3, 2021
https://www.cbsnews.com/news/facebook-statement-60-minutes-whistleblower-2021-10-03/

"Protection for private blocking and screening of offensive material"
47 USC 230 (CDA Section 230)
https://www.law.cornell.edu/uscode/text/47/230

"Whistleblower Awards"
SEC Website
https://www.sec.gov/page/whistleblower-100million

"SEC Surpasses $1 Billion in Awards to Whistleblowers with Two Awards Totaling $114 Million"
SEC Press Release - September 15, 2021
https://www.sec.gov/news/press-release/2021-177

"Other definitions."
17 CFR 240.21F-4
https://www.law.cornell.edu/cfr/text/17/240.21F-4

"Theft of trade secrets"
18 USC 1832
https://www.law.cornell.edu/uscode/text/18/1832

"Definitions"
18 USC 1839
https://www.law.cornell.edu/uscode/text/18/1839#3

"Exceptions to prohibitions"
18 USC 1833
https://www.law.cornell.edu/uscode/text/18/1833

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"Virtual Legality" is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).

CHECK OUT THE REST OF VIRTUAL LEGALITY HERE:
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DISCUSSION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS LEGAL ADVICE. INDIVIDUALS INTERESTED IN THE LEGAL TOPICS DISCUSSED IN THIS VIDEO SHOULD CONSULT WITH THEIR OWN COUNSEL.

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Twitter: @hoeglaw
Web: hoeglaw.com

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