Meta investors, Zuckerberg reach settlement to end $8 billion trial over Facebook privacy violations

Washington [US], July 18: Mark Zuckerberg and current and former directors and officers of Meta Platforms (META.O), opens new tab agreed on Thursday to settle claims seeking $8 billion for the damage they allegedly caused the company by allowing repeated violations of Facebook users' privacy, a lawyer for the shareholders told a Delaware judge on Thursday.
The parties did not disclose details of the settlement and defense lawyers did not address the judge, Kathaleen McCormick of the Delaware Court of Chancery. McCormick adjourned the trial just as it was to enter its second day and she congratulated the parties.
The plaintiffs' lawyer, Sam Closic, said the agreement just came together quickly.
Billionaire venture capitalist Marc Andreessen, a defendant in the trial and a Meta director, was scheduled to testify on Thursday.
Shareholders of Meta sued Zuckerberg, Andreessen and other former company officials including former Chief Operating Officer Sheryl Sandberg in hopes of holding them liable for billions of dollars in fines and legal costs the company paid in recent years.
The Federal Trade Commission fined Facebook $5 billion in 2019 after finding that it failed to comply with a 2012 agreement with the regulator to protect users' data.
The shareholders wanted the 11 defendants to use their personal wealth to reimburse the company. The defendants denied the allegations, which they called "extreme claims."Facebook changed its name to Meta in 2021. The company was not a defendant and declined to comment.
On its website, the company has said it has invested billions of dollars into protecting user privacy since 2019.
A lawyer for the defendants declined to comment.
"This settlement may bring relief to the parties involved, but it's a missed opportunity for public accountability," said Jason Kint, the head of Digital Content Next, a trade group for content providers.
Source: Fijian Broadcasting Cooperation