**Meta Shareholders Sue for $8 Billion Over Privacy Scandal**
Meta shareholders have filed a lawsuit seeking over $8 billion in fines and legal reimbursements linked to an alleged privacy scandal involving Facebook, founded by Mark Zuckerberg. The lawsuit stems from revelations that the data of millions of Facebook users was improperly accessed by the now-defunct political consulting firm Cambridge Analytica. The claim accuses approximately 11 executives, including Zuckerberg and former COO Sheryl Sandberg, of engaging in insider trading and facilitating illegal data harvesting, while the board allegedly neglected its oversight responsibilities.
Cambridge Analytica notably played a role in Donald Trump’s successful 2016 presidential campaign. According to reports, the shareholders, primarily union pension funds, assert that Zuckerberg and Sandberg operated the company as an “illegal data harvesting operation,” with the board failing to fulfill its duty to oversee the company’s activities.
The plaintiffs are seeking reimbursement for over $8 billion in fines and legal costs, which were previously paid to settle a 2012 privacy agreement violation with the U.S. Federal Trade Commission (FTC). The trial regarding the Facebook privacy scandal commenced in a Delaware court on July 16 and is expected to continue until July 25. The case is presided over by Chancellor Kathaleen St. J McCormick, who previously rejected a $55 billion pay package for Tesla CEO Elon Musk.
Defendants in the case include venture capitalist and current board member Marc Andreessen, as well as former board members Peter Thiel, co-founder of Palantir Technologies, and Reed Hastings, co-founder of Netflix.
During the trial, it was revealed that Facebook paid at least $7 billion in settlement costs to the FTC in 2019. Jeffrey Zients, a former company director and later chief of staff for President Joe Biden, testified that the board had instructed its lawyers to negotiate with the FTC and was prepared to pay billions, but did not agree to hold Zuckerberg personally accountable. He also stated that there was no evidence suggesting Zuckerberg was involved in the Cambridge Analytica data breach.
Future witnesses in the trial include Zuckerberg, Sandberg, Andreessen, and Thiel, with Zuckerberg expected to testify next week.
**FAQ**
**What is the lawsuit against Meta about?**
The lawsuit involves allegations that Meta executives, including Mark Zuckerberg and Sheryl Sandberg, engaged in insider trading and illegal data harvesting related to the Cambridge Analytica scandal, with shareholders seeking over $8 billion in fines and legal reimbursements.
