Meta Settles $8 Billion Data Scandal Suit, Ending Trial Abruptly

Meta Platforms has settled a shareholder lawsuit tied to the 2018 Cambridge Analytica data scandal for up to $8 billion in damages. The lawsuit accused top executives, including Mark Zuckerberg, of causing financial harm by allowing repeated privacy violations on Facebook. The settlement ended the trial on its second day, with details remaining undisclosed. Meta stock has a Strong Buy consensus rating with an average share price target of $741.31, implying an upside of 5.29% from current levels.

Meta Platforms Inc. (META) has reached a settlement with shareholders in a lawsuit related to the 2018 Cambridge Analytica data scandal. The settlement, valued at up to $8 billion in damages, was announced on Thursday, July 17, 2025, ending the trial on its second day. The details of the settlement remain undisclosed [1].

The lawsuit accused top executives, including Meta CEO Mark Zuckerberg, of causing financial harm by allowing repeated privacy violations on Facebook. Shareholders sought damages for the billions of dollars in fines and legal costs borne by the company, including a $5 billion penalty from the Federal Trade Commission (FTC) in 2019 [2].

The settlement was reached quickly and adjourned the trial before it could proceed further. Judge Kathaleen McCormick of the Delaware Court of Chancery congratulated both parties for arriving at the agreement [1].

The case was expected to feature testimony from Zuckerberg, former Chief Operating Officer Sheryl Sandberg, and other former and current board members, including Peter Thiel and Reed Hastings [3]. The lawsuit alleged that Zuckerberg and Sandberg knowingly ran Facebook as an illegal data harvesting service, violating the 2012 FTC agreement [4].

Meta's stock has a Strong Buy consensus rating with an average share price target of $741.31, implying an upside of 5.29% from current levels [4].

References:
[1] Reuters. (2025, July 17). Meta CEO Mark Zuckerberg makes a keynote speech during the Meta Connect annual event. Retrieved from https://www.reuters.com/sustainability/boards-policy-regulation/meta-investors-zuckerberg-reach-settlement-end-8-billion-trial-over-facebook-2025-07-17/
[2] Seeking Alpha. (2025, July 17). Zuckerberg, Meta investors reach settlement to end $8B Cambridge Analytica trial. Retrieved from https://seekingalpha.com/news/4468471-zuckerberg-meta-investors-reach-settlement-to-end-8b-cambridge-analytica-trial
[3] AP News. (2025, July 17). Meta privacy, Cambridge Analytica, Zuckerberg: A $8 billion class action investors’ lawsuit against Meta CEO Mark Zuckerberg and company leaders begins Wednesday. Retrieved from https://apnews.com/article/meta-privacy-cambridge-analytica-zuckerberg-4942257082030772915591d336c6a599
[4] Stocktwits. (2025, July 17). Mark Zuckerberg, Meta investors settle $8 billion Facebook privacy violation lawsuit. Retrieved from https://stocktwits.com/news-articles/markets/equity/mark-zuckerberg-meta-investors-settle-8-billion-facebook-privacy-violation-lawsuit/ch8KZgBR5pb