Meta's Board Faces $8B US Lawsuit Over Cambridge Analytica Data Breach

A $8 billion US class-action lawsuit against Meta's board, led by Amalgamated Bank Inc., will begin in Wilmington, Del. The lawsuit argues that the harvesting of Facebook user data in the Cambridge Analytica scandal violated a 2012 agreement with the FTC. The case has proceeded to the Supreme Court, with the justices allowing it to go forward unanimously. The trial will feature testimony from Mark Zuckerberg, Sheryl Sandberg, and other billionaire defendants.

A significant milestone in the ongoing legal saga surrounding Meta Platforms (formerly Facebook) is set to unfold this week. On Wednesday, a $8 billion US class-action lawsuit against the company's board, led by Amalgamated Bank Inc., will commence in Wilmington, Delaware. The lawsuit argues that the harvesting of Facebook user data during the Cambridge Analytica scandal violated a 2012 agreement with the U.S. Federal Trade Commission (FTC) [1].

The case, which has been a contentious one, has reached the Supreme Court. The justices, in a unanimous decision, allowed the case to proceed, reversing their earlier stance [1]. The trial, set to be presided over by Chief Judge Kathaleen McCormick of the Delaware Chancery Court, will feature testimony from key figures, including Meta's CEO Mark Zuckerberg and former COO Sheryl Sandberg, among other billionaire defendants [1].

The lawsuit contends that the defendants intentionally failed to ensure compliance with the FTC's consent order, which required the company to protect user privacy. This failure, according to the plaintiffs, enabled the Cambridge Analytica scandal, which saw the improper harvesting of data from tens of millions of Facebook users for political profiling [1].

The trial will also delve into the company's handling of user privacy and the knowledge and decision-making processes leading up to the scandal. Shareholders are seeking reimbursement for the billions spent on settlements and legal costs, estimating the total to be more than $8 billion [1].

Meta, which is not a named defendant in the suit, declined to comment on the case. The trial is expected to shed light on the company's internal communications and decision-making processes, potentially revealing new information about the scandal and its impact on the company's operations and financial health.

This lawsuit is a shareholder derivative action, where investors sue company executives or board members on behalf of the company. Such lawsuits aim to hold corporate insiders accountable for alleged breaches of fiduciary duties that have caused harm to the company [2].

The trial is set to be a significant event for Meta and its shareholders, as it could have profound implications for the company's future and its handling of user privacy and data protection.

References:

[1] https://www.cbc.ca/news/world/meta-shareholders-lawsuit-begins-1.7586176
[2] https://nypost.com/2025/07/15/business/meta-shareholders-aim-to-haul-ceo-mark-zuckerberg-sheryl-sandberg-to-court/