plowunited.net – Meta CEO Mark Zuckerberg and a group of current and former company executives have agreed to settle a lawsuit seeking $8 billion in damages. The case, brought by Meta shareholders, accused Zuckerberg and other directors of allowing repeated user privacy violations. The trial, which had just entered its second day, was paused after the settlement was reached.
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Reuters reported that the agreement will result in a payout to Meta shareholders. The plaintiffs argued that the executives’ actions—or lack thereof—led to massive financial losses, including a $5 billion fine from the Federal Trade Commission (FTC) in 2019. That penalty stemmed from Facebook’s failure to follow a 2012 agreement aimed at protecting user data.
The court did not disclose the final settlement amount, but it is expected to be less than the original $8 billion demand. Delaware Judge Kathaleen McCormick adjourned the proceedings before major witnesses could testify. Marc Andreessen, a Meta board member and a defendant in the case, was due to take the stand. Zuckerberg and former COO Sheryl Sandberg were scheduled to testify the following week.
Shareholders argued that the executives should personally repay the company for fines and legal fees tied to privacy breaches. Their lawsuit alleged that Meta operated as an illegal data-harvesting business, failing to ensure FTC compliance. The defendants denied the claims, calling them “extreme,” but agreed to the settlement to avoid a drawn-out trial.
Cambridge Analytica Fallout and What Comes Next for Meta
The legal case stems from the long-running fallout of the Cambridge Analytica scandal. In 2016, the political consulting firm improperly accessed the personal data of millions of Facebook users. The data was later used in Donald Trump’s successful presidential campaign. Following a federal investigation, the FTC imposed a record-setting $5 billion fine on Facebook in 2019.
During the short-lived trial, a privacy expert testified about serious flaws in Facebook’s privacy oversight. The testimony added weight to the plaintiffs’ argument that company leadership knowingly failed to protect user data. Though Meta settled the case, it still faces ongoing legal scrutiny. Another major lawsuit pits the FTC against Meta in an antitrust case, accusing the company of anti-competitive behavior through its acquisitions of Instagram and WhatsApp. That trial has concluded, but a ruling is still pending.
Separately, Zuckerberg faces allegations that Meta used pirated content to train its Llama AI model. In yet another legal issue, the company agreed to pay $25 million to settle a lawsuit with Donald Trump. The former president sued after his 2021 Facebook suspension, which followed his role in inciting the Capitol riot. The recent privacy settlement may help Meta close one chapter, but several others remain open. Regulators, investors, and the public continue to scrutinize how Meta handles data, competition, and artificial intelligence. The outcome of these ongoing cases will likely shape the company’s direction and public image in the years to come.
