Meta Platforms (Nasdaq: META) CEO Mark Zuckerberg and current and former company executives settled an $8 billion shareholder lawsuit Thursday, avoiding testimony about their roles in privacy violations linked to the Cambridge Analytica scandal.
Delaware Court of Chancery Judge Kathaleen McCormick announced the settlement on what would have been the trial’s second day. Attorneys disclosed no terms of the agreement.
Meta shareholders filed the lawsuit in 2018, seeking to hold Zuckerberg and 10 other executives personally liable for costs stemming from privacy violations. Regulators imposed a $5 billion penalty on Facebook in 2019 after determining the company violated a 2012 consent agreement requiring it to protect user data.
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Investors alleged that Meta executives failed to oversee the company’s compliance with that agreement and knowingly operated Facebook as an illegal data harvesting operation. They wanted defendants to reimburse Meta for regulatory fines and legal costs exceeding $8 billion.
The case centered on revelations that Cambridge Analytica accessed data from millions of Facebook users. The political consulting firm, which has since closed, supported Trump’s presidential bid in 2016.
The trial schedule called for testimony from Zuckerberg and former Chief Operating Officer Sheryl Sandberg. Other defendants included board members Marc Andreessen and Peter Thiel.
The settlement prevented what legal experts considered a landmark trial. The case marked the first time a “Caremark” claim went to trial, which concerns directors’ oversight duties. Such a trial has yet to run its full course, leaving questions about executive liability unresolved.
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“This settlement may bring relief to the parties involved, but it’s a missed opportunity for public accountability,” Jason Kint, CEO of Digital Content Next, told reporters.
Meta has declined to comment. The company noted the lawsuit targeted executives personally, not Meta Platforms.
The settlement allows Zuckerberg to avoid his second high-profile court appearance. He previously settled a 2017 investor lawsuit over a stock structure plan before testifying.
Related: Meta Settles US$8B Delaware Privacy Suit Related To Cambridge Analytica Scandal
Facebook paid additional settlements totaling $725 million to users and $100 million to the Securities and Exchange Commission over the Cambridge Analytica scandal.
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