Mark Zuckerberg Avoids Testifying in Multi Billion Dollar Meta Lawsuit

Mark Zuckerberg, the chief executive of Meta, alongside several prominent former board members, has reached a last-minute settlement to avoid testifying in an $8 billion lawsuit over alleged privacy violations tied to Facebook. The case was brought by shareholders who accused Zuckerberg and other directors of failing to ensure compliance with an agreement made with US regulators to protect user data.

The lawsuit stemmed from the US Federal Trade Commission’s record-breaking $5 billion fine imposed on Facebook in 2019. This penalty was linked to the Cambridge Analytica scandal, where data from millions of Facebook users was improperly accessed and used by a London-based consulting firm for political purposes, including Donald Trump’s presidential campaign in 2016.

Shareholders alleged that Zuckerberg, former COO Sheryl Sandberg, and others knowingly operated Facebook as an illegal data collection enterprise in breach of the company’s prior agreement with the Federal Trade Commission. The plaintiffs sought to hold 11 defendants personally liable for the billions of dollars spent on fines and legal costs, arguing they had failed in their duties to oversee the business properly. All of the defendants denied the claims, calling them excessive.

The terms of the settlement were not disclosed. However, the deal spared Zuckerberg and other high-profile figures, such as Andreessen Horowitz co-founder Marc Andreessen, from appearing in a Delaware court. Peter Thiel, the co-founder of Palantir, and Netflix’s Reed Hastings were also among the named defendants who avoided giving evidence.

As part of their case, shareholders sought to prove that the $5 billion settlement agreement with the FTC was reached to shield Zuckerberg personally from legal repercussions. Former Meta board member Jeffrey Zients testified that this was not the motivation for the settlement. He stated the company acted in its best interests by resolving the dispute with US regulators.

In the wake of legal uncertainties in Delaware courts, prominent figures and firms have started moving their businesses elsewhere. The venture capital firm Andreessen Horowitz recently announced a shift of its state of incorporation from Delaware to Nevada, following decisions by high-profile CEOs like Elon Musk to relocate their operations and corporate registrations. Zuckerberg’s leadership of Meta, the company formerly known as Facebook, continues to face scrutiny over its handling of user privacy and its commitment to reform.