Meta shareholders look to haul CEO Mark Zuckerberg, Sheryl Sandberg to court

10 months ago

Meta shareholders are suing CEO Mark Zuckerberg and former COO Sheryl Sandberg over the 2012 Cambridge Analytica scandal.
The lawsuit alleges that executives violated fiduciary duties by failing to comply with a 2012 FTC consent order, leading to privacy breaches.
Meta has spent over $8 billion settling lawsuits related to privacy violations, including a $5 billion FTC settlement in 2019.
The trial will examine Meta's handling of user privacy and decision-making before the Cambridge Analytica breach.
Prominent figures like Marc Andreessen, Reed Hastings, and Peter Thiel are being called to testify.
Shareholders claim the board ignored 'red flags' and approved settlements despite evidence of noncompliance.
The case is a shareholder derivative lawsuit, seeking to hold executives personally liable for damages to the company.
Delaware Chancellor Kathaleen McCormick, known for rulings against Elon Musk, is presiding over the trial.
The scandal affected up to 87 million users, leading to global regulatory scrutiny and fines.
Some major firms have left Delaware due to discontent over corporate governance rulings.

Hasty Briefsbeta