Meta Faces $8 Billion Privacy Lawsuit in US Trial

A high-profile $8 billion class action lawsuit against Meta CEO Mark Zuckerberg and other current and former company leaders has commenced in Delaware, stemming from the 2018 Cambridge Analytica privacy scandal. Shareholders accuse Zuckerberg and the board of neglecting their fiduciary duties by prioritizing their own interests over those of investors during negotiations of a $5 billion settlement with the Federal Trade Commission (FTC) for privacy violations. The plaintiffs, including union pension funds, seek reimbursement for the FTC fine and related legal costs, alleging continuous violations of a 2012 FTC consent order by Facebook. Key witnesses expected to testify include Zuckerberg, former COO Sheryl Sandberg, and board members such as Marc Andreessen and Peter Thiel, with former Meta director Jeffrey Zients defending the board's decisions. Meta contends it has since made significant investments to improve user privacy and claims the company was a victim of Cambridge Analytica's fraud. The outcome may have significant implications for corporate oversight responsibilities regarding data privacy under Delaware law.