Zuckerberg, Ex-Facebook Execs Face $8 Billion Trial Over Privacy Scandal

 Zuckerberg, Ex-Facebook Execs Face $8 Billion Trial Over Privacy Scandal

Mark Zuckerberg and several former Facebook executives are now facing a $8 billion trial in Delaware. The case, filed by Meta (formerly Facebook) shareholders, centers on claims that company leaders failed to protect user data, breaking an agreement Facebook made with U.S. regulators in 2012.

The trial follows the 2018 revelation that political firm Cambridge Analytica accessed the personal data of millions of Facebook users without consent. That breach became a global scandal. In 2019, the U.S. Federal Trade Commission (FTC) fined Facebook $5 billion for violating its earlier promise to protect user data. Shareholders now want Zuckerberg and others to pay that amount back to Meta, along with other legal costs.

Top Meta figures expected to testify include Mark Zuckerberg, former COO Sheryl Sandberg, and well-known board members like Peter Thiel and Marc Andreessen. Even Jeffrey Zients, who was a Meta board member and is now President Biden’s Chief of Staff, is on the witness list.

This lawsuit marks the first time that corporate board members are being taken to trial for allegedly failing in their duty to monitor how the company handled user data. Meta itself is not a defendant in the case. However, it has said on its website that it has invested billions of dollars in privacy improvements since 2019.

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In court documents, the defendants   including Zuckerberg and other Meta leaders   have denied any wrongdoing. They argue that Facebook was misled by Cambridge Analytica and that the company tried to stay compliant by hiring outside experts. They call the accusations “extreme.”

One of the big claims in this case is that Mark Zuckerberg knew Facebook would take a hit after the Cambridge Analytica story became public and sold over $1 billion in stock ahead of time. Lawyers for Zuckerberg say those sales were part of a plan made months in advance, which meant he had no control over the timing   and couldn’t be accused of insider trading.

This lawsuit is being heard in Delaware’s Chancery Court by Judge Kathaleen McCormick. She is expected to rule on both responsibility and the amount of damages, but not right away   the decision could take several months after the trial ends.

Legal experts say this trial is important because it's the first time corporate board members are going to trial for failing to monitor user privacy protections. It could set a precedent for how tech companies are held accountable in the future.

A similar case involving Boeing’s board in 2021 ended in a $237 million settlement, but the board did not admit guilt. This Meta case is larger and even more high-profile, given the global scale of Facebook and the involvement of figures like Zuckerberg and Sandberg.

Even though Meta is not being sued in this case, its reputation and leadership decisions are under the spotlight. The company has stayed quiet about the case but continues to claim it’s made major improvements in protecting user privacy.