Zuckerberg Reaches Settlement With Meta Shareholders In $8 Billion Privacy Case
Meta CEO Mark Zuckerberg and different executives reached a settlement with a gaggle of the corporate’s shareholders Thursday, ending a long-running, probably blockbuster $8 billion trial over allegations Facebook knowingly harvested person information.
An legal professional representing Meta shareholders instructed Judge Kathaleen McCormick in Delaware’s Chancery Court a settlement was reached with Zuckerberg and different members of the corporate’s management, a number of shops reported, although particulars of the settlement weren’t instantly accessible.
Sam Closic, the shareholders’ legal professional, stated an settlement was reached shortly, in line with Reuters.
Facebook shareholders sued Zuckerberg, former COO Sheryl Sandberg and different billionaires tied to the corporate in 2018, alleging they violated a Federal Trade Commission settlement by sharing person information with third-party apps with out their consent.
Shareholders requested $8 billion in damages, and the trial was anticipated to function 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 corporate instantly responded to requests for remark.
Who Were The Defendants In Meta’s Privacy Trial?
Zuckerberg, Sandberg and Konstantinos Papamiltiadis, Facebook’s former vice chairman of partnerships, have been amongst these named as defendants. Shareholders additionally named Andreessen, Thiel, Hastings and different Facebook board members, together with 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 workers who testified Wednesday, was named alongside Erskine Bowles, President Bill Clinton’s former chief of workers, for his or her 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 settlement the corporate reached with the FTC. That settlement included a consent order by which Facebook agreed to create a “comprehensive privacy program” to handle privateness issues. Their claims have been highlighted by the corporate’s Cambridge Analytica scandal, throughout which Facebook person information was harvested by a third-party app after which allegedly used to affect Brexit and the 2016 election. Zuckerberg and different defendants disputed claims of wrongdoing, arguing the shareholders did not again up their claims of firm officers appearing unlawfully.
Surprising Fact
Sandberg was sanctioned by Delaware’s Chancery Court in January, after she allegedly deleted private emails that have been materials to the trial. Sandberg claimed she hardly ever used her private electronic mail and data from these deleted emails was preserved as different customers have been copied in on these messages.
Forbes Valuation
Zuckerberg is the world’s third-wealthiest particular person with a fortune valued at $241.1 billion, in line with Forbes’ newest estimates. Sandberg has a web value valued at $2.4 billion as of Thursday, whereas Andreessen ($2 billion), Hastings ($6.8) and Thiel ($23.2 billion) additionally rank among the many world’s richest.