A $8 billion-dollar class action investors’ lawsuit against Meta CEO Mark Zuckerberg and company leaders — current and former — begins Wednesday, with claims stemming from the privacy scandal involving the Cambridge Analytica political consulting firm.
Investors allege in their lawsuit that Meta did not fully disclose the risks that Facebook users’ personal information would be misused by Cambridge Analytica, a firm that supported Donald Trump’s successful Republican presidential campaign in 2016. Shareholders say Facebook officials repeatedly and continually violated a 2012 consent order with the Federal Trade Commission under which Facebook agreed to stop collecting and sharing personal data on platform users and friends without their consent.
The fallout led to Facebook agreeing to pay a $5.1 billion penalty to settle FTC charges. The social media giant also reached a $725 million privacy settlement with users. Now shareholders want Zuckerberg and others to reimburse Meta for the FTC fine and other legal costs, which the plaintiffs estimate total more than $8 billion.
The case will feature testimony from Zuckerberg and former Chief Operating Officer Sheryl Sandberg. Others expected to appear on the stand include board member Marc Andreessen and former board member Peter Thiel.
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