October 15, 2018 CONFIDENTIAL / OFF-THE-RECORD / NOT FOR PUBLICATION VIA EMAIL Mr. Craig Silverman BuzzFeed, Inc. 111 E. 18th Street 13th Floor New York, New York 10003 Email: craig.silverman@buzzfeed.com Re: Fly Apps LTD - BuzzFeed Dear Mr. Silverman: As you are aware, we have been retained by Fly Apps LTD (“Fly Apps”) in connection with this matter. We write concerning the article you are writing about Fly Apps and, more specifically, Mr. Silverman’s email to Mr. Omer Anatot, dated October 9, 2018. Based upon our initial review of Mr. Silverman’s communications with our client, it appears that you intend to publish various false, defamatory, and highly damaging statements about Fly Apps and certain of its owners, including that Fly Apps is at the heart of and key beneficiary of a spoofing scheme involving more than sixty (60) applications which has stolen an estimated $750 million in advertising revenue. Your intended article purports to rely on a Pixalate blog post, dated June 12, 2018, entitled “Pixalate Uncovers Apparent Example of Sophisticated Mobile App Laundering”, located at: https://blog.pixalate.com/mobile-applaundering-bundle-id-megacast-alleged-sophisticated-invalid-traffic-ad-fraud (the “Pixalate Article”). Please be advised that my client categorically denies these very serious and false allegations, which if published, would cause tremendous harm to it. Fly Apps’ applications are loved by many, and have a significant amount of users. Fly Apps is a reputable application developer, which has long been supported by advertising partners and advertising verification companies. Fly Apps would not, and did not, perpetrate the alleged spoofing scheme, and has always aimed to maintain the traffic quality of it applications at the highest levels. If anything, Fly Apps has been a victim of that scheme. First, Fly Apps was not involved in “all 60+ apps identified by Pixalate” as Mr. Silverman’s email falsely claims. Fly Apps was involved with only three (3) of the {00094773;2} Mr. Craig Silverman October 15, 2018 Re: Fly Apps LTD – BuzzFeed Page 2 applications— MegaCast, Restaurant Finder, and EverythingMe. Fly Apps did not develop these applications to participate in the alleged spoofing scheme or knowingly engage in the scheme through these applications. Rather, after the Pixalate Article was published, in response to an inquiry by one of its advertising partners, Fly Apps investigated and discovered that the advertising software development kit (“SDK”) it had been running was falsifying traffic. Fly Apps promptly removed the compromised SDK. Based upon Fly Apps’ internal investigation, the corrupt SDK affected only 9.5% of Fly Apps’ traffic. As you should know, application developers like Fly Apps routinely use third party SDK’s to maximize their revenue and it was not unusual or suspect for Fly Apps to have done so here. Second, MegaCast, as your article intends to falsely report, is not the main beneficiary of an elaborate spoofing scheme set up and executed by Fly Apps. MegaCast (along with Restaurant Finder and EverythingMe) were used by a malicious SDK to generate false traffic for other applications, the overwhelming majority of which were operated by entities completely unrelated to Fly Apps. Fly Apps and its three (3) applications have not benefited from this scheme, but have instead been harmed by it. Third, your article intends to report that “Mobilytics, which was key to the fraud, has the same corporate Malta address, as Fly Apps,” that a “google search of this Malta address written in the way it appeared in the Play store or on websites brings up results almost exclusively connected to these apps and Fly Apps,” and that this shows “that all of apps in the spoofing attack are in fact part of the scheme together.” This is false and defamatory. Mobilytics appears to have been a domain used by the malicious SDK discovered by Fly Apps. Fly Apps does not operate or share operations with Mobilytics, and it is false and defamatory to claim that Mobilytics is operated by Fly Apps at the same office location. We are aware of no evidence that verifies that Mobilytics or any company related to Mobilytics is actually located at that address. Further, the Malta address is the address of the third party registered agent for Fly Apps, which receives notices and correspondence from the government and other official notifications. It is not Fly Apps’ headquarters or hub of operations. As it is common practice for companies to designate third party registered agents (like Fly Apps has done), it is expected that countless other companies have also designated the same third party registered agent and corporate address as Fly Apps. It is thus not suspicious or notable that other companies share the same corporate Malta address as Fly Apps. The same is likely also true for the Bulgaria address identified in Mr. Silverman’s email, though the Bulgaria address relates to companies other than Fly Apps. Fourth, the article will purport to report on the allegedly common emails, IP addresses, and other items amongst the sixty (60) applications and connect them all back to Fly Apps, as the alleged primary beneficiary of the scheme. This is false and defamatory. As stated above, Fly Apps is not affiliated with fifty-seven (57) of the applications identified by Pixalate. Fly Apps outsources a large part of its development work and does not have immediate control over the administrative tasks related to that work. Fly Apps cannot speak specifically to the fifty-seven (57) applications that it is not involved with, but it is likely that the shared information that Mr. {00094773;2} Mr. Craig Silverman October 15, 2018 Re: Fly Apps LTD – BuzzFeed Page 3 Silverman mentions (i.e., IP addresses, whois email addresses, how the applications were built, etc.) is due to application developers using the same or common service providers, who in turn register their own respective emails and addresses for domains and websites, or have a single IP address from which numerous websites are run, among other things. These alleged commonalities and strained connections are the practical result from application developers using the same pool of common service providers within a specific industry. They are not the result of any illicit conduct by Fly Apps in developing and setting up an intricate web of malicious applications to create fake traffic and steal hundreds of millions of dollar in advertising revenue. Fifth, Pixalate, Protected Media, and similar detection firms, upon which you purport to rely, are retained and paid for by advertisers, to investigate fraudulent conduct or schemes like the one alleged in the Pixalate Article. These firms are motivated to “uncover” as much fraudulent behavior as possible, so as to attract more advertiser and/or ad network clientele. As such, this raises obvious questions about the objectivity and underlying merits of purported findings made by such firms. See e.g.., “Anti Ad Fraud Company’s Guide to Countering Facepalm,” available at http://botlab.io/anti-ad-fraud-company-guide-to-countering-facepalm/ (discussing how findings by ad fraud research firms like Pixalate are targeted toward making the marketing effort more effective). Moreover, the timing of the publication of the Pixalate Article in this case further highlights these concerns with respect to the neutrality and validity of Pixalate’s “investigation” and findings. Pixalate published the Pixalate Article in June, based upon data from February, resulting in months where its ad network partners continued to run the so-called fraudulent traffic. Now, in October, presumably after those ad networks have finished collecting the ad revenues from the so-called fraudulent traffic, BuzzFeed is proposing to publish its findings. Thus, we are concerned that the relationship between Pixalate and its ad network partners may have influenced the Pixalate Article and question why BuzzFeed would continue to rely upon a potentially biased source such as Pixalate for articles regarding allegedly fraudulent ad traffic. In light of the foregoing, you are on notice of the true facts with respect to the matters addressed above. Please be advised that your publication of any false and defamatory statements regarding the matters addressed herein would be with actual malice and constitute, among other claims, libel, false light invasion of privacy, and tortious interference with contractual relations. This would leave Fly Apps with no alternative but to consider instituting immediate legal proceedings against you and any other individuals and/or entities involved in the publication of such statements. Should that occur, Fly Apps would assert all available causes of action and seek the maximum available compensatory and punitive damages. This letter is not intended as a full or complete statement of all relevant facts or applicable law, and nothing herein is intended as, nor should it be deemed to constitute, a waiver or relinquishment of any of my client’s rights, remedies, claims or causes of action, all of which are hereby expressly reserved. {00094773;2} Mr. Craig Silverman October 15, 2018 Re: Fly Apps LTD – BuzzFeed Page 4 This is a confidential legal communication intended solely for the recipients and their legal counsel, and should be treated as “off the record” for editorial purposes. Sincerely, RYAN J. STONEROCK Of HARDER LLP Cc: Client Lan Vu, Esq. {00094773;2}