**Meta Shareholders Sue Over Data Privacy Violations, Seeking $8 Billion**
Meta Platforms shareholders are launching an $8 billion lawsuit against Mark Zuckerberg and other current and former executives, alleging illegal data harvesting from Facebook users, which they claim breaches a 2012 agreement with the U.S. Federal Trade Commission (FTC). The trial is set to begin on Wednesday in Wilmington, Delaware, presided over by Chief Judge Kathaleen McCormick.
One of the first witnesses expected to testify is Jeffrey Zients, who served as White House chief of staff under President Joe Biden and was a Meta director from May 2018 for two years. The case will also feature testimonies from Zuckerberg and other high-profile defendants, including former Chief Operating Officer Sheryl Sandberg and board members Marc Andreessen, Peter Thiel, and Reed Hastings.
The lawsuit stems from the 2018 revelations that Cambridge Analytica, a political consulting firm, improperly accessed data from millions of Facebook users during the 2016 U.S. presidential campaign. Following this scandal, the FTC imposed a $5 billion fine on Facebook for violating its 2012 agreement regarding user data protection. Shareholders are seeking reimbursement for this fine and other legal expenses, which they estimate exceed $8 billion.
Defendants have denied the allegations, describing them as “extreme” and asserting that Facebook took measures to comply with the FTC agreement, including hiring an external consulting firm. They argue that Facebook was misled by Cambridge Analytica.
This lawsuit marks a significant legal challenge, as it is the first of its kind to go to trial, alleging that board members failed to adequately oversee the company. Such claims are notoriously difficult to prove under Delaware corporate law. A similar case involving Boeing’s board members settled in 2021 for $237.5 million, the largest settlement for alleged oversight breaches, without any admission of wrongdoing.
In addition to the privacy violations, plaintiffs allege that Zuckerberg anticipated the negative impact of the Cambridge Analytica scandal on Facebook’s stock and sold shares worth over $1 billion. Defendants contend that Zuckerberg did not engage in insider trading and followed a pre-established stock-trading plan.
As the trial unfolds, it will be closely watched for its implications on corporate governance and data privacy practices in the tech industry.
**FAQ**
**What are the main allegations against Meta’s leadership?**
Shareholders allege that Meta’s leadership illegally harvested user data, violating a 2012 FTC agreement, and seek $8 billion in damages.