Meta Faces $8 Billion Lawsuit Over Cambridge Analytica Scandal

Meta CEO Mark Zuckerberg is facing a significant legal challenge as an $8 billion class action lawsuit filed by Meta investors commenced on Wednesday. The lawsuit, which dates back to the 2018 Cambridge Analytica privacy scandal, alleges that Meta did not fully disclose the risks associated with the misuse of Facebook users' personal information by Cambridge Analytica. Shareholders claim that Meta's leadership, including Zuckerberg, violated a 2012 consent order with the Federal Trade Commission (FTC) by continuing to collect and share personal data without user consent. The company is accused of selling this data to commercial partners, further breaching the consent order.

As a result of these violations, Meta agreed to pay a $5.1 billion penalty to settle the FTC charges. Now, shareholders are seeking reimbursement from Zuckerberg and his leadership team for the penalty, along with legal costs, totaling over $8 billion. Key figures expected to testify in the case, which is anticipated to last about a week, include Zuckerberg, former COO Sheryl Sandberg, board member Marc Andreessen, and former board member Peter Thiel.

This legal battle underscores the ongoing scrutiny and regulatory challenges faced by Meta, particularly in the realm of data privacy and user consent. The outcome of this lawsuit could have significant implications for the company's future operations and its relationship with investors and regulators. The trial serves as a reminder of the importance of transparency and compliance in the tech industry, where data breaches and privacy concerns continue to be major issues.