Meta's $8 Billion Legal Battle: Zuckerberg and Sandberg Face the Heat

The class action lawsuit against Meta CEO Mark Zuckerberg and other leaders concerns privacy breaches related to Cambridge Analytica. Investors claim Meta failed to disclose risks as Facebook violated an FTC consent order. Shareholders seek reimbursement for billions in legal costs and penalties.

A class action lawsuit, potentially costing USD 8 billion, commenced against Meta CEO Mark Zuckerberg and other company leaders. The lawsuit emerges from the privacy scandal involving Cambridge Analytica, accusing Meta of not disclosing the misuse of Facebook users' data.

Investors argue that Facebook breached multiple agreements with the Federal Trade Commission (FTC), leading to substantial fines and settlements. The social media platform had initially agreed in a 2012 consent order with the FTC to halt unauthorized data collection, yet continued to mismanage user information.

As a result, Facebook paid a USD 5.1 billion penalty to the FTC, alongside a USD 725 million user privacy settlement. Plaintiffs now seek reimbursement for these massive expenses, with testimony anticipated from top Meta figures including Zuckerberg and former COO Sheryl Sandberg.

(With inputs from agencies.)