This article originally appeared in our San Francisco affiliate, The Recorder.
A group of plaintiffs lawyers are already vying for a big chunk of Facebook’s $104 billion IPO proceeds. On Thursday they filed an amended complaint in a proposed privacy class action in San Jose federal court, demanding $15 billion in damages and injunctive relief. The suit claims Facebook improperly tracked users’ activity between May 27, 2010, and Sept. 26, 2011, even after they logged out, in violation of federal and state laws.
“Even though Facebook assures its users that it does not track their Internet browsing post-logout, Facebook has been doing exactly that,” the 46-page complaint alleges. Twenty-one similar privacy suits filed in district courts across the country have been consolidated before U.S. district judge Edward Davila.
“We believe this complaint is without merit and we will fight it vigorously,” said Facebook spokesman Andrew Noyes. The company is being defended by Cooley partners Matthew Brown and Jeffrey Gutkin and associate Kyle Wong.
The federal Wiretap Act provides statutory damages of $100 per violation per day, up to $10,000, for each Facebook user, according to the lawsuit. The plaintiffs claim they’re entitled to the greater of $100 of statutory damages per day (corresponding to $15 billion for the class), or $10,000 each for the ongoing violations during the class period (which adds up to $1.5 trillion for the class).
U.S. and European regulators and politicians are scrutinizing the social-networking giant’s practices for protects users’ private information. The Federal Trade Commission settled a complaint with Facebook over privacy violations in November, with the Menlo Park company agreeing to establish a comprehensive privacy program that includes independent audits for the next 20 years.
The plaintiffs’ lead attorneys are Kiesel Boucher Larson in Beverly Hills; Bartimus Frickleton Robertson & Gorny in Kansas; and Stewarts Law in Wilmington, Del. They did not respond to requests for comment.
