Meta Settles US$8B Delaware Privacy Suit Related To Cambridge Analytica Scandal

Meta Platforms (NASDAQ: META) and a class of stockholders reached a surprise settlement to end a Delaware trial over the company’s long-running privacy lapses. Lawyers of the tech firm informed the plaintiff of the deal as day two of an eight-day proceeding began. Terms were not disclosed and will still need court approval.

The complaint accused founder Mark Zuckerberg and other directors of “intentional, recidivist violations of the law” for failing to honor a 2012 Federal Trade Commission consent order. Plaintiffs also alleged the insiders sold stock while knowing the company had not fixed its privacy controls.

Stockholders claimed the board “agreed to pay significantly more than what Facebook itself perceived as its maximum exposure to protect Zuckerberg from personal liability.” Had the case gone to verdict, Zuckerberg faced potential disgorgement of more than US$5 billion in alleged insider trading gains, with another US$3 billion hanging over fellow directors and officers.

At issue were security gaps that let Cambridge Analytica siphon data on some 87 million users for political profiling during the 2016 US election. Former director Jeffrey Zients testified that the board viewed Zuckerberg as “essential” to Meta’s growth and resisted an earlier FTC bid to name him personally in a 2019 settlement.

The deal removes the prospect of Zuckerberg’s testimony next week and closes one of the last shareholder efforts to pin personal liability on Meta leadership. If approved, the payment will add to more than US$10 billion Meta has already spent on privacy-related fines and settlements since 2019.

A motion for preliminary approval is expected within days.


Information for this story was found via Law360 and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Antimony Resources Drills 5.27% Sb Over 4.95 Metres In Latest Results

Nord Precious Metals Identifies 29 Veins At Castle East Following 3D Modeling

Related News

Meta Platforms to Allow Posts Praising Neo-Nazi Group, Calls for Violence Against Russians

Meta Platforms (NASDAQ: FB) has made temporary changes to its hate speech policy, allowing Facebook...

Friday, March 11, 2022, 09:48:00 AM

Meta Platforms To Take “Competitive” 47.5% Cut Of NFT Sales In It’s Metaverse

It appears that Meta Platforms (NASDAQ: FB) is looking to make up for recently lost...

Wednesday, April 13, 2022, 08:26:11 AM

Trudeau, Who Wants To Charge Meta & Google For Sharing News, Decries Tech Giants’ “Bullying Tactics”

Prime Minister Justin Trudeau has accused technology powerhouses Alphabet (NASDAQ: GOOGL) and Meta Platforms (NASDAQ:...

Thursday, June 8, 2023, 02:05:00 PM

Zuckerberg Is Looking At Integrating Virtual Commerce On Meta’s Horizon Worlds

After news of launching his own metaverse currency circulated, Meta Platforms (Nasdaq: FB) CEO Mark...

Tuesday, April 12, 2022, 11:29:00 AM

Meta Lays Off 11,000 Employees, Extends Hiring Freeze Through Q1

Meta Platforms (Nasdaq: META) CEO Mark Zuckerberg announced Wednesday morning that the company would be...

Wednesday, November 9, 2022, 10:37:00 AM