Trial opens against Meta CEO Zuckerberg over $8B privacy lawsuit

A Delaware court has begun hearing an $8 billion class action lawsuit against Meta CEO Mark Zuckerberg and other company leaders over alleged violations of Facebook users' privacy tied to the Cambridge Analytica scandal, press reports said on Wednesday.

The trial stems from claims that Meta failed to inform investors about the risks of user data misuse by the political consulting firm, which supported Donald Trump's 2016 presidential campaign, according to CBS News.

Shareholders allege that Facebook violated a 2012 consent order with the Federal Trade Commission (FTC) by continuing to collect and share personal data without user consent.

The lawsuit claims Facebook sold user data to commercial partners and removed privacy disclosures required under the agreement.

The fallout led to a $5.1 billion FTC penalty and a $725 million settlement with users, in addition to European fines.

Shareholders now demand that Zuckerberg and others reimburse Meta for the legal costs.

Testifying on Monday, privacy expert Neil Richards stated: Facebook’s privacy disclosures "were misleading."

Jeffrey Zients, a board member from 2018 to 2020, testified he supported the FTC settlement “to move forward,” despite the cost.

He added that Zuckerberg was “essential” to running the company and there was “no indication that he had done anything wrong.”

Testimony from Zuckerberg and former COO Sheryl Sandberg is expected next week.

A ruling from the Delaware Chancery Court is not anticipated for several months.

The US Supreme Court declined to dismiss the case, allowing the shareholder suit to proceed.