FC: Grassroots.com's internal memo on effort to shut them down

[Declan McCullagh <declan () well com>]

This was forwarded to me. My article on the complaint with the FEC:
  http://www.wired.com/news/politics/0,1283,35567,00.html

----

Some of you may be aware that a group called the National Legal and
Policy Center, a Washington-based non-profit has filed a complaint with
the FEC regarding Dnet and our arrangement with CGS and the League of
Women Voters.  http://www.nlpc.org  While we don't know for sure, it's
possible that one of our competitors is indirectly behind this nuisance
- perhaps the price we pay for being in a leadership position.

I want everyone to be apprised of the facts as we know them, but please
do not make public comments regarding this matter or otherwise share
this information with anyone outside of Grassroots.com.

First, this is not a lawsuit.  It is simply a complaint filed with the
FEC against a ruling that we received in October 1999.  That ruling does
not rest on the for profit or non-profit status of the entity which
holds DNet, and the DNet project, its mission, scope are altered in no
way from their status under CGS, a non-profit.  We had a followup
informal discussion with the FEC a month ago confirming the October 1999
ruling is not changed under Grassroots.

Second, this filing is mostly 1. in error, and 2.  misrepresentative of
facts and 3. interpreting the law backwards.  While for the most part,
we don't believe it is material, we are responding seriously, and our
attorneys are preparing a point by point rebuttal which will be filed
with the FEC this week.  Our lead attorney on the case is a former head
of the FEC and is well apprised of both the law and the commission's
workings.

Third, Robert Palmer and Ellen Keech are on top of the PR aspect.  In
association with our attorneys, we have already prepared a press
statement which we are providing on a case by case basis, and may issue
a press release if the story gains any traction in the press.  If it
doesn't we'd rather not create waves where there are none.

On both legal and PR fronts we are working hand in hand with the League
of Women Voters to coordinate our response.

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