Meta founders Mark Zuckerberg and Sheryl Sandberg avoid testifying following settlement of a $8 billion privacy lawsuit with shareholders.
In a significant development, a recent settlement has been reached in the $8 billion class-action lawsuit against Mark Zuckerberg and other Meta directors. The lawsuit, filed by shareholders, accused Meta executives of intentionally breaching a 2012 Federal Trade Commission (FTC) agreement by misusing user data, leading to significant financial losses for investors.
The details of the settlement remain undisclosed, with neither the parties involved nor Meta Platforms commenting on the financial terms or concessions made by the defendants. The settlement occurred a day after the trial began, with Meta stating that the lawsuit was against the directors personally, not Meta Platforms.
The trial, which began on July 17, was expected to include testimonies from prominent figures like Zuckerberg, former COO Sheryl Sandberg, Peter Thiel, Marc Andreessen, and Reed Hastings. The case follows revelations that data from millions of Facebook users was accessed by Cambridge Analytica, a political consulting firm that worked for Donald Trump's 2016 campaign.
Shareholders sued Zuckerberg, Andreessen, other former company officials, and Meta Platforms, hoping to hold them liable for fines and legal costs the company paid in recent years. The investors claimed that Zuckerberg and Sandberg knowingly ran Facebook as an illegal data harvesting operation.
Jason Kint, the head of Digital Content Next, a trade group for content providers, stated that the settlement was a missed opportunity for public accountability. Jeffrey Zients, a former board member, testified that the company did not agree to the FTC fine to spare Zuckerberg legal liability.
Meta Platforms has stated on its website that it has invested billions of dollars into protecting user privacy since 2019. An expert witness for the plaintiffs testified about "gaps and weaknesses" in Facebook's privacy policies but did not say if the company violated the 2012 FTC agreement.
The trial would have been a rare opportunity for Meta investors to see Zuckerberg answer probing questions under oath. Zuckerberg was expected to testify on Monday, Sandberg on Wednesday in the ongoing trial. However, the trial was adjourned by Kathaleen McCormick of the Delaware Court of Chancery due to the settlement.
In 2019, the FTC fined Facebook $5 billion for failing to comply with the 2012 agreement to protect users' data. Meta Platforms, which changed its name to Meta in 2021, was not a defendant in the trial. Billionaire venture capitalist Marc Andreessen, a Meta director, was scheduled to testify on Thursday but was not required to do so due to the settlement.
The case includes expected testimony from former Facebook board members Peter Thiel and Reed Hastings. The trial was scheduled to run through the end of next week, but its status is now uncertain due to the settlement.
[1] https://www.reuters.com/technology/facebook-settles-8-billion-class-action-lawsuit-2025-07-18/ [2] https://www.wsj.com/articles/facebook-settles-8-billion-class-action-lawsuit-11626931031
- The trial, initially set to explore accusations against Meta directors, including Mark Zuckerberg and Marc Andreessen, for allegedly breaching a 2012 FTC agreement and misusing user data, ultimately was adjourned due to a recent settlement reached in the $8 billion class-action lawsuit.
- As the media reported on the developments in the class-action lawsuit against Meta directors, it was revealed that technology giants like Meta Platforms had invested significantly in bolstering user privacy protections, but the settlement created an uncertain future for the trial, potentially hindering public accountability for the case.
