Meta Shareholders Sue Board Over Privacy Rule Failures and $5B Settlement

Meta executives, including CEO Mark Zuckerberg and former COO Sheryl Sandberg, face a shareholder lawsuit in Delaware court this week. The lawsuit alleges the board failed to enforce privacy rules and approved a $5 billion FTC settlement to shield Zuckerberg from personal liability.

The case stems from the 2019 Cambridge Analytica scandal, where user data was harvested without consent. Shareholders claim the board breached fiduciary duties by not upholding a 2012 FTC consent decree, arguing the settlement prioritized Zuckerberg's interests over the company's.

The trial, set to run for eight days, highlights internal tensions at Meta as critics accuse the company of valuing executive protection over user privacy. The outcome could set a precedent for holding tech giants accountable for data mismanagement.