Trial begins against Meta CEO Mark Zuckerberg, others over alleged Facebook privacy violations
A massive $8 billion class action lawsuit has been filed against Meta CEO Mark Zuckerberg and other company leaders, both current and former, stemming from the 2018 privacy scandal involving Cambridge Analytica. Investors claim that Meta failed to disclose the risks associated with Facebook users’ personal information being misused by Cambridge Analytica, a firm that played a role in Donald Trump’s 2016 presidential campaign. The lawsuit alleges that Facebook violated a 2012 consent order with the Federal Trade Commission by continuing to collect and share personal data without user consent, as well as selling user data to commercial partners in direct violation of the order.
As a result of the scandal, Facebook agreed to pay a $5.1 billion penalty to settle FTC charges, faced fines in Europe, and reached a $725 million privacy settlement with users. Shareholders are now seeking reimbursement from Zuckerberg and other leaders for the FTC fine and legal costs, totaling more than $8 billion.
Privacy expert Neil Richards testified that Facebook’s privacy disclosures were misleading, while former board member Jeffrey Zients emphasized the importance of consumer privacy and user data to both management and the board. Zients supported settling with the FTC to address potential violations of the 2012 consent order.
The trial is expected to include testimony from Zuckerberg, former COO Sheryl Sandberg, board member Marc Andreessen, and former board member Peter Thiel. The case is being heard in Delaware Chancery Court, where Meta Platforms Inc. is incorporated, with a ruling expected several months from now.
Meta had sought to have the case dismissed, but the Supreme Court declined to hear their appeal, allowing the lawsuit to proceed. The legal battle continues as shareholders seek accountability for the privacy scandal that rocked Facebook and Meta.
Reported by Ortutay from San Francisco.
