WILMINGTON, Delaware – Meta Platforms CEO Mark Zuckerberg and current and former directors, including billionaire investor Marc Andreessen and ex-COO Sheryl Sandberg, agreed to settle a shareholder lawsuit seeking $8 billion in damages over alleged privacy violations, a plaintiffs’ attorney announced Thursday.
The settlement, reached abruptly on the trial’s second day in Delaware’s Court of Chancery, avoids a high-profile courtroom battle over claims that Meta’s leadership failed to protect user data, leading to massive regulatory fines—including a $5 billion FTC penalty in 2019. Terms of the deal were not disclosed.
Shareholders Sought Personal Accountability
The lawsuit, filed by Meta investors, argued that Zuckerberg and other executives should personally reimburse the company for fines and legal costs tied to privacy scandals, including the Cambridge Analytica breach. The defendants had dismissed the claims as “extreme,” but the quick settlement suggests a strategic retreat.
Andreessen’s Testimony Avoided
The trial was poised to delve into Meta’s internal decision-making, with Andreessen—a longtime board member—scheduled to testify. Instead, Judge Kathaleen McCormick adjourned the case after lawyers announced the deal.
A ‘Missed Opportunity’ for Transparency?
While the resolution spares Meta further reputational damage, critics say it sidesteps public accountability. Jason Kint of Digital Content Next, a trade group, called it a “missed opportunity” to scrutinize leadership’s role in privacy failures.
Meta, which rebranded from Facebook in 2021, has emphasized its post-2019 privacy investments but faces ongoing regulatory scrutiny worldwide. The settlement closes one legal front, but debates over tech giants’ data practices rage on.