Zuckerberg Faces $8B Trial Over Facebook Data Privacy/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Meta CEO Mark Zuckerberg and top executives face an $8 billion trial over alleged Facebook data privacy violations tied to the Cambridge Analytica scandal. Shareholders claim Meta leaders breached a 2012 FTC deal to protect user data, demanding repayment of fines and legal costs. The trial, a rare oversight case in Delaware, could set a major corporate governance precedent.
Quick Looks
- $8 billion trial targets Zuckerberg and Meta executives
- Focus on data privacy violations linked to Cambridge Analytica
- FTC fined Facebook $5 billion over 2012 agreement breach
- Defendants deny wrongdoing, cite compliance measures
- Ex-White House Chief of Staff Jeffrey Zients to testify
- Zuckerberg accused of insider trading; denies allegations
- Trial could reshape corporate oversight law in Delaware
- Meta not a defendant but has boosted privacy investment
Deep Look
Zuckerberg, Meta Executives Face Landmark $8 Billion Privacy Trial
WILMINGTON, Delaware — Meta CEO Mark Zuckerberg and several current and former company leaders are heading to trial in Delaware this week, facing a blockbuster $8 billion lawsuit that could reshape the legal landscape for corporate board oversight.
The non-jury trial in Delaware’s Chancery Court, overseen by Chief Judge Kathaleen McCormick, centers on accusations that Meta’s leadership knowingly allowed Facebook user data to be misused, violating a 2012 consent agreement with the U.S. Federal Trade Commission (FTC).
Cambridge Analytica at the Heart of Case
The case stems from the 2018 revelation that millions of Facebook users’ personal data was improperly accessed by Cambridge Analytica, a now-defunct political consulting firm linked to President Donald Trump’s 2016 campaign. In response, the FTC imposed a historic $5 billion fine on Facebook, citing breaches of its earlier privacy pact.
Now, Meta shareholders want Zuckerberg and fellow executives—including former COO Sheryl Sandberg, board members Marc Andreessen, Peter Thiel, and Reed Hastings—to personally repay Meta for the fine and related legal expenses, totaling over $8 billion.
Billionaires Set to Testify
Among the star witnesses will be Jeffrey Zients, White House chief of staff under President Joe Biden and a Meta director from 2018 to 2020. The trial will also feature testimony from Sandberg, venture capitalist Andreessen, Palantir co-founder Thiel, and Netflix co-founder Hastings.
Plaintiffs allege the board failed in its duty to oversee privacy practices and protect user data. They also claim Zuckerberg sold Facebook shares, netting at least $1 billion, anticipating a stock drop after the Cambridge Analytica scandal surfaced.
Zuckerberg’s legal team insists he did not trade on inside information, arguing he used a pre-established stock trading plan specifically designed to avoid insider trading accusations.
Meta Denies Wrongdoing
In court filings, the defendants dismissed the shareholders’ claims as “extreme,” arguing that Meta hired external consultants to ensure FTC compliance and itself was deceived by Cambridge Analytica’s tactics.
Meta, which is not directly named as a defendant, declined to comment for this story. On its website, the tech giant highlights billions invested in user privacy upgrades since 2019.
Corporate Governance at Stake
The lawsuit marks the first trial of its kind alleging board members consciously failed to fulfill their oversight duties—a notoriously difficult claim to prove under Delaware corporate law. Similar allegations against Boeing’s board resulted in a $237.5 million settlement in 2021, though without any admission of wrongdoing.
Judge McCormick is expected to rule on liability and damages several months after the trial concludes, leaving Meta’s top brass—and corporate boards everywhere—awaiting a potentially precedent-setting decision.
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