Mark Zuckerberg resolves legal dispute stemming from Cambridge Analytica data breach accusations, according to various news sources
In a significant development, a class-action lawsuit brought by shareholders against Meta board members, including CEO Mark Zuckerberg, over the Cambridge Analytica data privacy scandal has been settled for $8 billion. The settlement was announced on the same day Marc Andreessen, a Meta board member, was due to take the stand.
The lawsuit, which has been a long-standing concern for Meta and its leadership, was initiated due to allegations that company executives mishandled the Cambridge Analytica data privacy scandal. Cambridge Analytica, a now-defunct political consulting firm, is accused of improperly collecting data from millions of Facebook users.
The key allegations in the lawsuit include claims that Meta repeatedly violated a 2012 consent order with the Federal Trade Commission (FTC) by collecting and sharing personal data without user consent. The plaintiffs also alleged that Meta sold user data to commercial partners in violation of the consent order. Furthermore, the lawsuit focused on a $5 billion fine paid to the FTC in 2019 to settle alleged privacy violations, with plaintiffs arguing that this fine was excessive and intended to shield Zuckerberg from personal liability.
The terms of the settlement are not publicly disclosed, and Meta declined to comment on the settlement, stating that the lawsuit was against Mark Zuckerberg and directors personally, not Meta Platforms. Aimee Picchi, the associate managing editor for our MoneyWatch, covering business and personal finance, reported that Meta did not comment on the reported settlement in an email to our News.
The settlement resolves a legal issue tied to the Cambridge Analytica scandal, which has been a significant concern for Meta and its leadership. The trial for the lawsuit began in court on Wednesday. It is important to note that the lawsuit is related to privacy concerns and that under the 2012 consent order, Facebook agreed to stop collecting and sharing personal data on platform users and friends without their consent.
Aimee Picchi, who previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports, has been covering this story extensively. The lawsuit is a class-action lawsuit, meaning it represents a group of people with similar claims against the defendants.
Marc Andreessen, the co-founder of venture capital firm Andreessen Horowitz, was also due to take the stand in the trial. It is unclear how his testimony would have impacted the settlement negotiations.
This settlement marks a significant step forward in resolving the privacy concerns raised by the Cambridge Analytica scandal, which has been a major issue for Facebook (Meta) and its users. The company will now focus on rebuilding trust and ensuring the protection of user data moving forward.
- The lawsuit, representing shareholders who have expressed concerns over Meta's handling of the Cambridge Analytica data privacy scandal, was centered around allegations of repeated violations of a 2012 consent order with the Federal Trade Commission (FTC).
- The settlement, announced on the same day Marc Andreessen was scheduled to testify, includes claims that Meta sold user data to commercial partners in violation of the consent order, and focuses on a $5 billion fine paid to the FTC in 2019 to settle alleged privacy violations.
- With this settlement, Meta, now facing a significant step forward in resolving the privacy concerns raised by the Cambridge Analytica scandal, will focus on rebuilding trust and ensuring the protection of user data moving forward.
