Meta Investors and Zuckerberg Settle $8 Billion Trial Over Facebook Privacy Lawsuit

Mark Zuckerberg, CEO of Meta, testified during the Senate Judiciary Committee hearing titled 'Big Tech and the Online Child Sexual Exploitation Crisis' on Jan. 31, 2024.

Mark Zuckerberg and current and former directors and officers of Meta Platforms reached a settlement on Thursday to resolve claims seeking $8 billion for alleged damage caused by repeated violations of Facebook users' privacy, as stated by a lawyer for the shareholders in a Delaware court.

The details of the settlement were not disclosed, and defense lawyers did not address the judge, Kathaleen McCormick of the Delaware Court of Chancery. The trial was adjourned abruptly, and the parties were congratulated by the judge.

The plaintiffs' lawyer, Sam Closic, mentioned that the agreement came together swiftly. Billionaire venture capitalist Marc Andreessen, a defendant in the trial and a Meta director, was expected to testify.

Shareholders of Meta had sued Zuckerberg, Andreessen, and other former company officials, including former COO Sheryl Sandberg, seeking to hold them accountable for fines and legal costs incurred by the company. The Federal Trade Commission had fined Facebook $5 billion in 2019 for failing to comply with a 2012 data protection agreement.

The shareholders wanted the defendants to use their personal wealth to reimburse the company, but the defendants denied the allegations as 'extreme claims.' Facebook, now known as Meta, was not a defendant in the case.

There was no immediate comment from the company or the defendants' lawyer. Jason Kint, head of Digital Content Next, expressed disappointment over the settlement, calling it a missed opportunity for public accountability.

The trial, which was expected to feature testimonies from Zuckerberg, Sandberg, and other prominent figures, aimed to address the oversight failures related to user data compliance and allegations of illegal data practices within Facebook.

The lawsuit stemmed from the Cambridge Analytica scandal and the subsequent FTC fine, which led to increased scrutiny on Facebook's privacy policies and data handling practices.

According to the source: CNBC.