A settlement has been reached in a class action lawsuit against Meta CEO Mark Zuckerberg and company leaders over the Cambridge Analytica privacy scandal. The lawsuit claimed billions in reimbursement for fines and legal costs. Investors alleged Meta failed to disclose the risks of personal data misuse associated with Cambridge Analytica. Shareholders claimed Facebook violated a consent order with the Federal Trade Commission by selling user data without consent. The fallout included a $5.1 billion FTC penalty and significant European fines, along with a $725 million privacy settlement with users.
Investors had alleged in the lawsuit that Meta did not fully disclose the risks to Facebook users that their 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 violated a 2012 consent order with the Federal Trade Commission under which Facebook agreed to stop collecting and sharing personal data without users' consent.
Facebook later sold user data to commercial partners in direct violation of the consent order and removed disclosures from privacy settings that were required under consent order, the lawsuit alleged.
Facebook agreed to pay a $5.1 billion penalty to settle FTC charges in the fallout. The social media giant also faced significant fines in Europe and reached a $725 million privacy settlement with users.
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