Topline
Meta CEO Mark Zuckerberg and other executives reached a settlement with a group of the company’s shareholders Thursday, ending a long-running, potentially blockbuster $8 billion trial over allegations Facebook knowingly harvested user data.
Facebook shareholders sued Meta leadership in 2018, alleging the company knowingly harvest user … More
Key Facts
An attorney representing Meta shareholders told Judge Kathaleen McCormick in Delaware’s Chancery Court a settlement was reached with Zuckerberg and other members of the company’s leadership, multiple outlets reported, though details of the settlement were not immediately available.
Sam Closic, the shareholders’ attorney, said an agreement was reached quickly, according to Reuters.
Facebook shareholders sued Zuckerberg, former COO Sheryl Sandberg and other billionaires tied to the company in 2018, alleging they violated a Federal Trade Commission agreement by sharing user data with third-party apps without their consent.
Shareholders requested $8 billion in damages, and the trial was expected to feature testimony from Zuckerberg, Sandberg and billionaires Peter Thiel, Marc Andreessen and Netflix CEO Reed Hastings, all of whom served on Facebook’s board.
Neither Meta nor attorneys representing the company immediately responded to requests for comment.
Who Were The Defendants In Meta’s Privacy Trial?
Zuckerberg, Sandberg and Konstantinos Papamiltiadis, Facebook’s former vice president of partnerships, were among those named as defendants. Shareholders also named Andreessen, Thiel, Hastings and other Facebook board members, including former Bill & Melinda Gates Foundation CEO Susan Desmond-Hellman, eBay CFO Peggy Alford and former American Express CEO Kenneth Chenault. Jeff Zients, President Joe Biden’s former chief of staff who testified Wednesday, was named alongside Erskine Bowles, President Bill Clinton’s former chief of staff, for their roles on Facebook’s board.
Key Background
A lawsuit between shareholders of Facebook, which rebranded to Meta in 2021, arose in 2018 over alleged violations of an agreement the company reached with the FTC. That agreement included a consent order in which Facebook agreed to create a “comprehensive privacy program” to address privacy concerns. Their claims were highlighted by the company’s Cambridge Analytica scandal, during which Facebook user data was harvested through a third-party app and then allegedly used to influence Brexit and the 2016 election. Zuckerberg and other defendants disputed claims of wrongdoing, arguing the shareholders failed to back up their claims of company officials acting unlawfully.
Surprising Fact
Sandberg was sanctioned by Delaware’s Chancery Court in January, after she allegedly deleted personal emails that were material to the trial. Sandberg claimed she rarely used her personal email and information from those deleted emails was preserved as other users were copied in on those messages.
Forbes Valuation
Zuckerberg is the world’s third-wealthiest person with a fortune valued at $241.1 billion, according to Forbes’ latest estimates. Sandberg has a net worth valued at $2.4 billion as of Thursday, while Andreessen ($2 billion), Hastings ($6.8) and Thiel ($23.2 billion) also rank among the world’s richest.
