Latest news with #CambridgeAnalytica
Malay Mail
a day ago
- Business
- Malay Mail
Meta settles US$5b Cambridge Analytica case but critics say accountability still lacking
WASHINGTON, July 19 — Meta chief Mark Zuckerberg and other company board members settled a shareholder lawsuit on Thursday concerning decisions made in the wake of the Cambridge Analytica privacy scandal. A trial over the long-running case had just begun on Wednesday, with defendants accused of overpaying the US government in 2019 when they engineered a US$5 billion (RM21.2 billion) settlement for alleged privacy violations in the scandal. Sources familiar with the matter confirmed the settlement to AFP, without providing details. A spokesman for Meta, the parent company of Facebook, declined to comment. Lawyers for the defendants and shareholders didn't immediately return requests for comment. The settlement comes the same day that Marc Andreessen, one of Silicon Valley's most influential venture capitalists and a Meta board member, was scheduled to take the stand. Zuckerberg himself was expected in the Wilmington, Delaware courtroom on Monday. Silicon Valley investor Peter Thiel and former Meta top executive Sheryl Sandberg — both former board members — were also expected to face questioning in the court. Cambridge Analytica was a political consulting firm that was found to have improperly accessed personal data from millions of Facebook users for targeted political advertising, particularly during the 2016 US election and Brexit referendum. The scandal thrust Facebook and Zuckerberg in particular into a political firestorm, leading to major regulatory changes and public scrutiny of tech companies' data practices. The shareholders in the lawsuit alleged that the board members conspired to pay more to the US government in exchange for ensuring that Zuckerberg would not be named personally for wrongdoing in the settlement. High-profile case Longtime observers of the company were hoping that the trial would expose inside details of how Zuckerberg and the Facebook executives handled the scandal. 'This settlement may bring relief to the parties involved, but it's a missed opportunity for public accountability,' said Jason Kint, the head of Digital Content Next, a trade group for content providers. He worried that Meta 'has successfully remade the 'Cambridge Analytica' scandal about a few bad actors rather than an unravelling of its entire business model of surveillance capitalism and the reciprocal, unbridled sharing of personal data.' Zuckerberg was under huge pressure at the time from US and European lawmakers amid widespread allegations that Russia and other bad actors were weaponizing Facebook to sow chaos around major elections in the West. The multi-faceted case also alleged insider trading at the time of the events, with board members to be questioned about the timing of their share sales before the scandal erupted. The high-profile case was expected to bring further attention to Delaware, the state that many US companies choose for incorporation due to its highly specialised courts. The trial was presided over and to be decided by Kathaleen McCormick, the same judge who last year rejected Elon Musk's multi-billion pay package at Tesla. Tesla has since chosen to reincorporate in Texas and reports said that Meta was also considering a different state to register its business empire. — AFP
Gizmodo
2 days ago
- Business
- Gizmodo
Settlement in Meta Privacy Suit Spares Board Members Zuck, Sandberg, and Thiel From Testifying
An $8 billion shareholder lawsuit against Meta over the Cambridge Analytica scandal ended in an undisclosed settlement on Thursday. The settlement, which came at the last minute as a trial was getting underway, saved high-ranking members of Meta's board from having to testify under oath about their roles in those alleged violations. The lawsuit, which was originally filed in 2018, asked the defendants to use billions of their personal wealth to compensate for the financial damages it accused them of inflicting on the company due to the privacy scandal, Reuters reports. The defense said that the lawsuit offered 'extreme claims' and denied the allegations, the outlet writes. On Thursday, as the trial was set to continue, a settlement was announced by Sam Closic, a lawyer representing the plaintiffs. France24 reports that the agreement 'came together quickly' and spared past and present Meta board members from having to testify under oath before the court. Those board members included Meta CEO Mark Zuckerberg, as well as venture capitalists Peter Thiel and Marc Andreessen, both of whom have played pivotal roles at the company. Sheryl Sandberg, who left Meta in 2022 and left its board last year, would have also had to testify. Had the settlement not been reached, Andreessen would have begun his testimony on Thursday. The tail of the Cambridge Analytica scandal has obviously been long. The scandal, the events of which occurred in 2016 and involved violations of Facebook's privacy policy by a defense contractor specializing in psychological warfare, first made headlines all the way back in 2017. Since then, the company has weathered ongoing controversy, terrible press, and lawsuits. It was also the beginning of a rough string of years for the company, with other controversies—like the Facebook Papers—popping up during the same period. Amidst these various scandals, Facebook changed its name to Meta in 2021. In the end, it's still a massively profitable company that arguably faces less oversight under the second Trump administration than it ever has before. A trial could have shed further light on the internal workings of Meta, as well as the leadership decisions surrounding the Cambridge Analytica scandal and its fallout. The details of the settlement were not shared in court. Gizmodo reached out to Meta for more information. Reuters has reported that a representative for the defendants declined to comment.
Phone Arena
2 days ago
- Business
- Phone Arena
Remember the Cambridge Analytica scandal? Zuckerberg and Meta settle $8 billion lawsuit
Do you recall the Cambridge Analytica scandal? Yes, I remember it clearly to this day. Now that you mention it, it all comes back. Never heard of it. Yes, I remember it clearly to this day. 0% Now that you mention it, it all comes back. 0% Never heard of it. 0% Receive the latest Apps news By subscribing you agree to our terms and conditions and privacy policy The settlement was announced Thursday during a hearing in Delaware, just as the trial was about to begin its second day. Details of the settlement remain confidential for the moment, and attorneys for the defense offered no comment, while the judge congratulated both sides on resolving the lawsuit, brought by Meta shareholders, accused Zuckerberg, venture capitalist Marc Andreessen, Sandberg, and other former executives of failing to prevent privacy breaches that cost the company billions in regulatory dispute centered on Facebook's failure to follow a 2012 FTC agreement to protect user data, which led to a $5 billion fine in 2019. Shareholders wanted executives to repay the company from their own wealth, but the defendants called the claims "extreme" and denied any trial was expected to feature testimony from prominent figures, including Zuckerberg, Sandberg, Netflix co-founder Reed Hastings, and Palantir co-founder Peter Thiel. Zuckerberg was slated to testify Monday, and Sandberg later in the week. Sandberg was criticized for deleting important emails, which hurt her defense in court. By settling, she and the others avoid having to testify under oath or reveal information that could harm the core of the lawsuit were so-called Caremark claims – lawsuits that say company leaders didn't do their job to keep the company out of legal trouble. Basically, shareholders argue the board ignored big warning signs or didn't set up any system to make sure the company followed the law. These cases are very hard to win because you have to prove the leaders acted in bad faith, not just made allegations stemmed from the Cambridge Analytica scandal, which involved the political consulting firm improperly collecting data from millions of Facebook users without their consent. This data was used to target voters during the 2016 US presidential election and other campaigns. The breach exposed major flaws in Facebook's data privacy practices and sparked global outrage. It led to investigations, significant fines – including a $5 billion penalty from the Federal Trade Commission – and raised awareness about how personal information is handled by social media platforms.I think it's safe to say that it's all forgotten by now – forgotten by regular Facebook users, I mean. Zuck and co. will remember this little stunt for life.
The Hindu
2 days ago
- Business
- The Hindu
Meta CEO Mark Zuckerberg settles lawsuit over Cambridge Analytica scandal
Meta chief Mark Zuckerberg and other company board members settled a U.S. shareholder lawsuit on Thursday concerning decisions made in the wake of the Cambridge Analytica privacy scandal. A trial over the long-running case had just begun on Wednesday, with defendants accused of overpaying the U.S. government in 2019 when they engineered a $5 billion settlement for alleged privacy violations in the scandal. Sources familiar with the matter confirmed the settlement to AFP, without providing details. The settlement comes the same day that Marc Andreessen, one of Silicon Valley's most influential venture capitalists and a board member of the company now known as Meta, was to take the stand. Mr. Zuckerberg himself was expected in the Wilmington, Delaware courtroom on Monday. Silicon Valley investor Peter Thiel and former Meta top executive Sheryl Sandberg were also expected to face questioning in the court. Cambridge Analytica was a political consulting firm that was found to have improperly harvested personal data from millions of Facebook users for targeted political advertising, particularly during the 2016 U.S. election and Brexit referendum. The scandal thrust Facebook and Mr. Zuckerberg in particular into a political firestorm, leading to major regulatory changes and public scrutiny of tech companies' data practices. The shareholders in the lawsuit alleged that the board members conspired to pay more to the U.S. government in exchange for ensuring that Mr. Zuckerberg would not be named personally for wrongdoing in the settlement. Longtime observers of the company were hoping that the trial would expose inside details of how Mr. Zuckerberg and the Facebook executives handled the scandal. Mr. Zuckerberg was under huge pressure at the time from U.S. and European lawmakers amid widespread allegations that Russia and other bad actors were weaponising Facebook to sow chaos around major elections in the West. The multi-faceted case also alleged insider trading at the time of the events, with board members to be questioned about the timing of their share sales before the scandal was made public.
CNA
2 days ago
- Business
- CNA
Meta investors, Meta CEO Zuckerberg settle US$8 billion lawsuit over Facebook privacy violations
Meta CEO Mark Zuckerberg has agreed to settle a US$8 billion lawsuit brought by shareholders who accused the company's leadership of failing to prevent repeated privacy violations. The last-minute deal came just before testimony was set to continue in a Delaware court over Meta's handling of scandals like the Cambridge Analytica data breach. Ira Spitzer reports from San Francisco.
