Summary
A trial involving Meta Platforms' shareholders against Mark Zuckerberg and other company leaders has begun. The case claims they misused Facebook users' data, breaking a 2012 agreement with the U.S. Federal Trade Commission. The trial is expected to decide on liability and damages in months to come.
Key Facts
- The trial involves an $8 billion lawsuit against Meta Platforms' leaders, including Mark Zuckerberg.
- Shareholders claim Facebook illegally used user data, violating a 2012 agreement with the Federal Trade Commission (FTC).
- The lawsuit follows the 2018 Cambridge Analytica incident, where data from millions of Facebook users was improperly accessed.
- The FTC fined Facebook $5 billion for this privacy breach in 2019.
- Shareholders want the defendants to repay Meta for the FTC fine and other legal expenses.
- Testimonies during the trial will include Mark Zuckerberg, Sheryl Sandberg, and others.
- The trial is taking place in Delaware, where most U.S. public companies are incorporated due to favorable corporate laws.
- This type of lawsuit, called a Caremark claim, is challenging to prove but has been gaining momentum in courts recently.
