Meta's $8B Data Scandal Trial Ends Early with Settlement
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Meta's $5B FTC Fine Sparked Backlash
Shareholders also targeted Meta's board for approving a $5 billion fine levied by the Federal Trade Commission (FTC), a deal they claimed shielded Zuckerberg from personal liability. The plaintiffs argued that the board failed to prevent Meta from violating a 2012 FTC order that restricted its data-sharing practices.
These claims followed revelations that Cambridge Analytica, a now-defunct political consulting firm linked to Donald Trump's 2016 presidential campaign, had improperly accessed data from millions of Facebook users. The scandal led directly to the record-setting FTC fine.
An Abrupt End to the Trial
The settlement abruptly ended the trial on its second day, meaning Meta executives and board members will no longer have to testify about their handling of the breach. On the first day, an expert witness for the plaintiffs pointed to 'gaps and weaknesses' in Facebook's privacy policies, but did not confirm whether META violated the 2012 FTC agreement.
Details of the settlement remain undisclosed. The trial was overseen by Judge Kathaleen McCormick of the Delaware Court of Chancery, who praised both sides for reaching an agreement.
Is Meta a Buy, Hold, or Sell?
Turning to Wall Street, META stock has a Strong Buy consensus rating based on 41 Buys and four Holds assigned in the last three months. The average Meta share price target is $741.31, which implies an upside of 5.29% from current levels.
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