Zuckerberg, Meta Investors Reach Settlement to End ₹68,800-Crore FB Privacy Case
In a significant development, Meta CEO Mark Zuckerberg and the company’s former and current officials have agreed to settle claims seeking $8 billion (over ₹68,800 crore) for the damages they allegedly caused by allowing repeated violations of Facebook users’ privacy. The settlement was reached just days before the trial was set to begin, with Zuckerberg expected to testify in the case.
The lawsuit, filed in 2020, accused Meta and its top executives, including Zuckerberg, of intentionally ignoring Facebook’s privacy obligations and allowing the social media platform to harvest users’ personal data without their consent. The plaintiffs, led by a group of institutional investors, claimed that the repeated violations of privacy led to a significant decline in the value of Meta’s stock, resulting in financial losses for the investors.
The settlement agreement was revealed in a US court on July 17, but the details of the agreement remain undisclosed. The shareholders’ lawyer, Greg Varallo, confirmed the settlement, stating that the parties had reached an agreement to end the trial. However, the exact terms of the settlement, including the compensation package for the investors, have not been made public.
The lawsuit was filed in the Delaware Chancery Court, which is known for handling complex business disputes. The trial was expected to be a high-stakes affair, with Zuckerberg set to testify in court. The outcome of the case could have had significant implications for Meta’s leadership and the company’s overall accountability for its data handling practices.
The lawsuit was filed on behalf of several institutional investors, including the California State Teachers’ Retirement System, the New York State Common Retirement Fund, and the Alaska Permanent Fund Corporation. The investors alleged that Meta had failed to adequately address privacy concerns and had prioritized user growth over data security.
The case was seen as a major test of Meta’s accountability for its data handling practices, particularly in the wake of several high-profile data breaches and scandals. In recent years, Meta has faced numerous controversies, including the Cambridge Analytica scandal, which exposed the unauthorized use of Facebook data by the political consulting firm.
The settlement comes as Meta is facing growing scrutiny over its data handling practices. In recent months, the company has implemented several changes to its data policies and practices, including the introduction of new privacy features and the appointment of a Chief Privacy Officer.
However, the settlement does not necessarily mean that Meta has admitted to any wrongdoing. The company has consistently denied any liability in the case, and the settlement agreement is likely to include language that absolves Meta of any wrongdoing.
The exact terms of the settlement will likely remain confidential, but the agreement is expected to provide some level of compensation to the investors who brought the lawsuit. The settlement may also include reforms to Meta’s data handling practices and increased transparency around the company’s data policies.
As the social media landscape continues to evolve, the case highlights the need for greater accountability and transparency around data handling practices. The settlement serves as a reminder that companies like Meta must prioritize user privacy and take steps to protect their data.
Source:
