Meta Investors Reach Settlement with Zuckerberg and Company Officials Over FTC Settlement and Privacy Incident.

Meta investors have reached a settlement with company officials, including CEO Mark Zuckerberg, to end a multibillion dollar lawsuit in Delaware. The case focused on a $5 billion FTC settlement for a 2019 privacy incident, with investors accusing Meta of overpaying to protect Zuckerberg from personal liability. Terms of the settlement were not disclosed.

Meta investors have reached a settlement with company officials, including CEO Mark Zuckerberg, to end a multibillion-dollar lawsuit in Delaware. The case focused on a $5 billion FTC settlement for a 2019 privacy incident, with investors accusing Meta of overpaying to protect Zuckerberg from personal liability. Terms of the settlement were not disclosed.

The lawsuit, which began on Wednesday, July 16, 2025, alleged that Meta shareholders should be compensated for losses exceeding $8 billion due to the FTC fine and other legal expenses. The trial was held at the Delaware Chancery Court, with Judge Kathaleen McCormick presiding. The case centered on allegations that Meta leaders failed to oversee the company's privacy practices, leading to the Cambridge Analytica scandal in 2016 [1].

The settlement comes four months after Delaware lawmakers overhauled the state's corporate law, making it harder for shareholders to challenge deals struck with controlling shareholders like Zuckerberg. The bill was drafted after the state's governor met with representatives of Meta [2].

Meta shareholders claimed that Zuckerberg anticipated a drop in the company's stock price after the Cambridge Analytica scandal and sold his shares, earning at least $1 billion. The defendants argued that Zuckerberg did not trade on insider information and used a stock-trading plan designed to prevent insider trading [3].

The settlement follows a series of privacy-related controversies for Meta, including the FTC fine and a $725 million privacy settlement with users. The company has invested billions of dollars into protecting user privacy since 2019 [4].

The settlement marks a significant development in the ongoing legal battle between Meta shareholders and the company's leadership. The exact terms of the settlement remain confidential, but the resolution indicates a willingness from both parties to move forward and address the privacy concerns that have plagued Meta for years.

References:
[1] https://www.reuters.com/sustainability/boards-policy-regulation/facebook-privacy-practices-focus-8-billion-trial-targeting-zuckerberg-2025-07-16/
[2] https://www.androidheadlines.com/2025/07/mark-zuckerberg-8-billion-lawsuit-meta-shareholders.html
[3] https://www.the-journal.com/articles/meta-ceo-mark-zuckerberg-expected-to-testify-in-8-billion-facebook-privacy-lawsuit/
[4] https://www.bloomberg.com/news/articles/2025-07-16/meta-trial-on-privacy-scandal-begins-with-tech-politics-a-list