Meta Settles Multibillion Privacy Lawsuit: A Missed Chance for Accountability?
Mark Zuckerberg and Meta's current and former executives have settled an $8 billion lawsuit over privacy violations, avoiding public accountability. Shareholders had sued for damages related to fines and legal costs from repeated privacy breaches. The settlement concludes a trial that could have set a precedent for director oversight claims.
Mark Zuckerberg and several Meta executives have agreed to settle an $8 billion lawsuit alleging that the company violated users' privacy, a lawyer disclosed to a Delaware court. The settlement stems from claims that the executives were responsible for violations that led to numerous fines, notably a $5 billion Federal Trade Commission fine in 2019.
The lawsuit accused Zuckerberg, Meta director Marc Andreessen, former COO Sheryl Sandberg, and others of failing in their oversight roles. Shareholders sought reimbursement for fines from the defendants' personal wealth. Despite the settlement, critics argue it misses an opportunity for greater public accountability.
The settlement precludes a trial that would have subjected Zuckerberg and others to intense scrutiny on the witness stand. Allegations focused on 'Caremark claims,' a rare and potentially precedent-setting legal strategy concerning directors' duties. This case also drew attention due to connections with the Cambridge Analytica scandal.
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