Meta Investors Settle $8bn Privacy Lawsuit
Meta investors have settled a multibillion-dollar lawsuit against CEO Mark Zuckerberg and company directors regarding their handling of Facebook's privacy violations. The settlement was announced during the trial's second day in Delaware court.
Background of the Case
Shareholders initiated the lawsuit in 2018 following the Cambridge Analytica scandal, where political consultants improperly accessed data from millions of Facebook users. The plaintiffs sought $8 billion in damages, claiming leadership failures led to massive regulatory fines and legal costs.
Settlement Details
While the settlement amount remains confidential, it prevents high-profile testimony from defendants including Jeffrey Zients (former Biden administration official), Peter Thiel (Palantir co-founder), and Reed Hastings (Netflix co-founder). Former COO Sheryl Sandberg was also scheduled to testify.
Leadership Accountability
During testimony, Jeffrey Zients acknowledged Meta's $5 billion FTC penalty but denied it was paid to shield Zuckerberg from liability. Legal experts note the settlement prevents full public disclosure of decision-making processes behind Facebook's privacy breaches.
Broader Implications
Ann Lipton, University of Colorado law professor, stated: "We won't get that accounting now" regarding internal approval of questionable practices. Meta maintains it has invested billions in privacy reforms since 2019. The case was overseen by Chancellor Kathaleen McCormick, who previously rejected Elon Musk's Tesla pay package.