Wilmington, Delaware (AP) – $8 billion class action investor lawsuit against meta CEO Mark Zuckerberg and company leaders — now and former — began Wednesday, claims stemming from a 2018 privacy scandal involving a Cambridge Analytica political consulting firm.
Investors have alleged in their lawsuit that Meta has not fully disclosed the risk that Facebook users’ personal information will be misused by Cambridge Analytica, the company that supports the success of Donald Trump’s Republican presidential campaign in 2016.
The lawsuit claims that Facebook has since sold user data to commercial partners in direct violation of the consent order and removed disclosures from required privacy settings under the consent order.
With Fallout, Facebook has agreed to pay a $5.1 billion penalty to resolve FTC fees. The social media giant also faces major fines, reaching a $725 million privacy payment with users. Currently, shareholders want Zuckerberg and others to refund Meta for FTC fines and other legal costs. This estimates over $8 billion.
Privacy expert Neil Richards, a witness to the first trial, testified for shareholders Monday morning.
Richards, a professor at Washington University Law School, said:
In subsequent testimony, Jeffrey Zients, who served on Facebook’s board of directors from 2018 to 2020, testified that consumer privacy and user data are a priority for both management and the board.
Nevertheless, he supported settlement with the FTC as he investigated a potential violation of the 2012 consent order, allowing the company to move forward.
“This was difficult because it was a lot of money, but I think it was better than the alternative,” Zients said.
When asked whether the board considered making the founder a party to the settlement, he said Zuckerberg was “essential” to the company’s management.
And the zients, who served in both the Obama and Biden administrations, said there was no indication that he had done anything wrong.
The incident is expected to take place late next week and include testimonies from both Zuckerberg and former Chief Operating Officer Sheryl Sandberg. Other witnesses expected at the Delaware Chance Court, which includes Facebook Parent Meta Platforms Inc., include board member Marc Andreessen and former board member Peter Thiel. The judge is not expected to rule for several months.
Mehta wanted the Supreme Court to dismiss the case. The judge heard the argument before deciding that it should not be covered in November. The High Court dismissed the company’s appeal and left an appeal ruling that moved the case forward.
Orttey reported from San Francisco.
Original issue: July 16th, 2025 10:31am EDT
