Meta Directors and Shareholders Settle Cambridge Analytica-Related Lawsuit

Meta directors and shareholders settle privacy lawsuit over Cambridge Analytica scandal, avoiding testimony from current and former board members. Plaintiffs alleged directors failed to protect user data, leading to improper access by U.K. data firm Cambridge Analytica. The settlement ends the need for Mark Zuckerberg, Sheryl Sandberg, and others to testify.

Title: Meta Directors and Shareholders Settle Privacy Lawsuit Over Cambridge Analytica Scandal

Meta Platforms Inc. has reached a settlement with shareholders in an $8 billion lawsuit over the Cambridge Analytica scandal, thereby avoiding the need for testimony from current and former board members, including Mark Zuckerberg and Sheryl Sandberg. The settlement resolves allegations that directors failed to protect user data, leading to improper access by the U.K. data firm Cambridge Analytica.

The lawsuit, which began Wednesday, alleged 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 2016 Republican presidential campaign. Shareholders contended that Facebook officials repeatedly and continually violated a 2012 consent order with the Federal Trade Commission (FTC), under which Facebook agreed to stop collecting and sharing personal data on platform users and friends without their consent. The settlement ends the need for key executives to testify in the ongoing trial [1].

The settlement comes after several months of testimony, including from privacy expert Neil Richards and Jeffrey Zients, who served on Facebook's board from 2018 to 2020. Richards testified that Facebook's privacy disclosures were misleading, while Zients stated that consumer privacy and user data were priorities for both management and the board. The case was expected to include testimony from Zuckerberg, Sandberg, and other board members, but the settlement has now avoided this requirement [2].

The settlement is a significant development in the ongoing legal battle over the Cambridge Analytica scandal, which has had far-reaching implications for Meta and its shareholders. The settlement ends the need for a lengthy trial and potential damages, providing a resolution for both parties involved. The FTC fined Facebook $5 billion in the wake of the scandal, and the company has faced significant fines in Europe and reached a $725 million privacy settlement with users. The shareholders sought reimbursement for these costs, which they estimated to total more than $8 billion [1].

The settlement is a testament to the ongoing legal challenges faced by Meta in the aftermath of the Cambridge Analytica scandal. The company has faced numerous lawsuits and regulatory fines, highlighting the importance of robust data protection measures and transparency in corporate governance. The settlement also underscores the need for companies to take proactive steps to protect user data and ensure compliance with regulatory requirements.

References
[1] https://www.cbc.ca/news/world/meta-shareholders-lawsuit-begins-1.7586176
[2] https://fortune.com/2025/07/17/trial-8-billion-lawsuit-mark-zuckerberg-meta-leaders-cambridge-analytica-privacy-scandal/