Meta Platforms, the parent company of Facebook, has settled a shareholder lawsuit linked to the 2018 Cambridge Analytica data breach. The lawsuit, which sought up to $8 billion in damages, alleged that Meta’s leadership caused financial harm by repeatedly failing to protect user data. Shareholders also challenged the board’s approval of a $5 billion fine from the U.S. Federal Trade Commission (FTC), claiming it was designed to protect CEO Mark Zuckerberg from personal liability. The fine stemmed from Meta’s alleged violation of a 2012 FTC order that limited its data-sharing practices. The scandal was triggered by revelations that Cambridge Analytica had accessed data from millions of Facebook users without their consent during the 2016 U.S. presidential campaign.
The trial, overseen by Judge Kathaleen McCormick in Delaware, ended abruptly on its second day as both parties agreed to settle. Terms of the agreement remain confidential. Judge McCormick commended the parties, stating she was grateful to both sides for resolving. On the first day of the trial, an expert witness for the plaintiffs identified “gaps and weaknesses” in Facebook’s privacy systems but did not confirm a violation of the 2012 FTC order.
