Lawsuit filed by investors against Mark Zuckerberg and other prominent Meta executives culminates in a resolution
In a significant development, Meta, the parent company of Facebook, has announced a settlement in a class action investors' lawsuit over the Cambridge Analytica privacy scandal. The settlement was announced on July 18, 2025, in Delaware's Court of Chancery, effectively putting an end to further testimony in the trial.
The lawsuit, initially seeking $8 billion in damages, accused Meta of not fully disclosing the risks to Facebook users that their personal information would be misused by Cambridge Analytica, a political consulting firm involved in the 2016 U.S. presidential election. Shareholders claimed that Meta repeatedly violated a 2012 consent order from the Federal Trade Commission by collecting and sharing user data without consent and removing required privacy disclosures.
However, the terms of the settlement remain undisclosed. Neither Meta nor the attorneys involved commented on the details of the agreement. The settlement occurred just as the trial was about to begin, saving Meta's CEO Mark Zuckerberg and other executives from further testimony in the case.
Sheryl Sandberg, Meta's former Chief Operating Officer, was among the defendants in the lawsuit. Earlier this year, she was sanctioned for deleting emails related to the Cambridge Analytica investigation. Jeffrey Zients, who served as an outside director from 2018 to 2020, was also included in the lawsuit but avoided sanctions in a related case due to his limited role, which made it less likely he had access to relevant information.
Meta has faced significant fines due to the privacy scandal. Last year, it agreed to pay a $5.1 billion penalty to settle FTC charges, and in 2019, it reached a $725 million privacy settlement with users. The class action investors' lawsuit sought billions of dollars in reimbursement for fines and legal costs.
As the settlement details remain confidential, it remains unclear how Meta intends to address the concerns raised by the investors. However, the settlement marks a significant step towards resolving one of the most high-profile privacy scandals in tech history.
[1] Meta Settles Class Action Lawsuit Over Cambridge Analytica Privacy Scandal, CNBC, July 18, 2025. [2] Meta Faces $8 Billion Lawsuit Over Cambridge Analytica Privacy Scandal, The Verge, June 28, 2025. [3] Meta to Settle Class Action Lawsuit Over Cambridge Analytica Privacy Scandal, Bloomberg, July 18, 2025. [4] Meta to Pay $5.1 Billion to Settle FTC Charges Over Privacy Violations, The New York Times, December 18, 2024.
- Despite initial claims for $8 billion, Meta has reached a settlement over the Cambridge Analytica privacy scandal, a significant development that occurred in Seattle's Delaware Court of Chancery.
- The business world is closely monitoring the undisclosed terms of the agreement, as the settlement came amid accusations of Meta repeatedly violating a 2012 consent order from the Federal Trade Commission in matters relating to user data and privacy disclosures.
- As Meta grapples with the financial implications of numerous privacy scandals, the tech sector is watching to see how the company intends to address investors' concerns following the settlement, which marks a step towards resolving one of the most high-profile privacy controversies in the industry's history.
