Meta Platforms chief executive Mark Zuckerberg and a group of shareholders reached an $8 billion settlement in a lawsuit accusing them of allowing repeated privacy violations on Facebook.
According to Reuters, the settlement was announced by a shareholder lawyer at the Delaware Court of Chancery, where the trial was underway. Judge Kathaleen McCormick adjourned the trial following the announcement.
The lawsuit centred on allegations that Meta’s management failed to enforce a 2012 agreement with the US Federal Trade Commission to protect user data. This failure led to the Cambridge Analytica scandal, a record $5 billion fine by the FTC, and other legal costs.
In the lawsuit, the group was called to account for failing to prevent violations of Facebook users’ privacy, claiming that the oversights led to the company facing fines and legal fees.
Shareholders decided that Zuckerberg and others should personally reimburse the company for these expenses.
The group of defendants included several current and former Meta executives, including former chief operating officer Sheryl Sandberg and venture capitalist and Meta director Marc Andressen.
The lawsuit centred on allegations that Meta’s management failed to enforce a 2012 agreement with the US Federal Trade Commission to protect user data. This failure led to the Cambridge Analytica scandal, a record $5 billion fine by the FTC, and other legal costs.
In the lawsuit, the group was called to account for failing to prevent violations of Facebook users’ privacy, claiming that the oversights led to the company facing fines and legal fees.
Shareholders decided that Zuckerberg and others should personally reimburse the company for these expenses.
The group of defendants included several current and former Meta executives, including former chief operating officer Sheryl Sandberg and venture capitalist and Meta director Marc Andressen.
Initially, the trial was set to continue for another week with scheduled testimony from former board members, including Mark Zuckerberg, venture capital and co-founder of PayPal Peter Thiel and former chief executive of Netflix Reed Hastings.
The trial was interrupted shortly before Zuckerberg’s testimony.
Since 2021, Facebook has operated under the name Meta and is not a defendant in this case.
The company states on its website that it has invested billions of dollars to improve user privacy since 2019.
