Meta Board Faces Lawsuit Over USD5B Privacy Breach
(MENAFN) Top Meta executives, including CEO Mark Zuckerberg and former COO Sheryl Sandberg, are set to testify this week in a corporate law court as part of a lawsuit alleging that boardroom failures led to multibillion-dollar penalties tied to the Cambridge Analytica data scandal of the 2010s, according to media.
The trial, beginning Wednesday in Delaware, will feature testimony from several prominent figures, including venture capitalist Marc Andreessen, former board member Jeff Zients—who previously served as a senior adviser to President Joe Biden—investor Peter Thiel, former American Express CEO Kenneth Chenault, and Netflix co-founder Reed Hastings.
A group of minority shareholders claims that Meta’s board knowingly failed to enforce proper data privacy measures, violating a 2012 agreement with the Federal Trade Commission (FTC) that was intended to protect users' personal information. The defendants deny these accusations.
The case stems from the Cambridge Analytica controversy, where a political consultancy harvested user data through a third-party app without proper consent.
Shareholders are seeking damages linked to Meta’s $5 billion settlement with the FTC in 2019, arguing that the board allowed the company to absorb the penalty in order to protect Zuckerberg, without conducting an adequate internal investigation.
They also allege that Zuckerberg unlawfully sold billions of dollars in stock based on insider knowledge about the company's undisclosed data-sharing practices.
The trial, beginning Wednesday in Delaware, will feature testimony from several prominent figures, including venture capitalist Marc Andreessen, former board member Jeff Zients—who previously served as a senior adviser to President Joe Biden—investor Peter Thiel, former American Express CEO Kenneth Chenault, and Netflix co-founder Reed Hastings.
A group of minority shareholders claims that Meta’s board knowingly failed to enforce proper data privacy measures, violating a 2012 agreement with the Federal Trade Commission (FTC) that was intended to protect users' personal information. The defendants deny these accusations.
The case stems from the Cambridge Analytica controversy, where a political consultancy harvested user data through a third-party app without proper consent.
Shareholders are seeking damages linked to Meta’s $5 billion settlement with the FTC in 2019, arguing that the board allowed the company to absorb the penalty in order to protect Zuckerberg, without conducting an adequate internal investigation.
They also allege that Zuckerberg unlawfully sold billions of dollars in stock based on insider knowledge about the company's undisclosed data-sharing practices.
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