An $8 billion class action lawsuit was filed against Meta CEO Mark Zuckerberg and current and former executives of the company, centring on privacy violations linked to the 2018 Cambridge Analytica scandal, according to AP News.
Investors allege Meta failed to disclose risks that user data would be misused by the political consultancy, which supported Donald Trump’s 2016 presidential campaign. The lawsuit further contends that Facebook leadership “repeatedly and continually violated” a 2012 Federal Trade Commission (FTC) consent order requiring explicit user consent for data collection and sharing.
Shareholders assert Facebook subsequently sold user data to commercial partners in “direct violation” of the consent decree while removing mandated privacy disclosures.
The scandal triggered a $5.1 billion FTC penalty, significant European fines, and a $725 million user settlement. Investors now seek reimbursement from Zuckerberg and co-defendants for these costs, estimated to exceed $8 billion.
Former board member Jeffrey Zients (2018–2020) testified that privacy was a management priority, defending the FTC settlement despite its scale:
It was difficult because this was a lot of money, but I think it was better than the alternative.
Zients, who served in Obama and Biden administrations, added Zuckerberg was “essential” to operations with “no indication he had done anything wrong.”
The trial, unfolding in Delaware Chancery Court where Meta is incorporated, will feature testimonies from Zuckerberg, former COO Sheryl Sandberg, board member Marc Andreessen, and ex-board member Peter Thiel.
Proceedings are expected to conclude late next week, with a ruling anticipated months later.
