Meta Settles Shareholder Privacy Lawsuit for $8B, Avoiding Zuckerberg's Oath
Meta Platforms, the parent company of Facebook, has reached a settlement in a shareholder lawsuit over privacy violations. The agreement was made on the second day of the trial in the Delaware Court of Chancery. Mark Zuckerberg and other directors and officers, including Sheryl Sandberg, agreed to the settlement, which sought $8 billion in damages.
The trial, had it proceeded, would have been a rare chance for Meta investors to question Zuckerberg under oath about the company's privacy practices. Other expected witnesses included former board members Peter Thiel and Reed Hastings. Shareholders wanted the defendants to use their personal wealth to reimburse the company for fines and legal costs, totaling up to $8 billion.
The settlement may bring relief to the parties involved but has been criticized for missing an opportunity for public accountability. A trade group for content providers expressed this view. The case could have provided insights into Facebook's data protection practices, with suitable witnesses including individuals affected by data processing, data protection and IT security experts, and internal personnel responsible for data handling. This is inferred from general principles on data protection litigation. The Federal Trade Commission previously fined Facebook $5 billion in 2019 for similar privacy violations.
The settlement in the Meta Platforms privacy lawsuit has been reached, ending the possibility of a public trial. While it brings relief to the parties involved, it also raises questions about missed opportunities for public accountability. The details of the settlement remain undisclosed.
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