Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

BumRushDaShow

(157,315 posts)
Wed Jul 16, 2025, 05:38 PM Jul 16

Facebook privacy practices the focus of $8 billion trial targeting Zuckerberg

Source: CNN Business

Published 8:09 AM EDT, Wed July 16, 2025


CNN — An $8 billion trial by Meta Platforms shareholders against Mark Zuckerberg and other current and former company leaders kicks off on Wednesday over claims that they illegally harvested the data of Facebook users in violation of a 2012 agreement with the US Federal Trade Commission.

Jeffrey Zients, White House chief of staff under President Joe Biden and a Meta director for two years starting in May 2018, is expected to be one of the first witnesses to take the stand in the non-jury trial before Kathaleen McCormick, chief judge of the Delaware Chancery Court.

The case will feature testimony from Zuckerberg and other billionaire defendants including former Chief Operating Officer Sheryl Sandberg, venture capitalist and board member Marc Andreessen and former board members Peter Thiel, Palantir Technologies co-founder, and Reed Hastings, co-founder of Netflix. A lawyer for the defendants, who have denied the allegations, declined to comment.

The case began in 2018, following revelations that data from millions of Facebook users was accessed by Cambridge Analytica, a now-defunct political consulting firm that worked for Donald Trump’s successful US presidential campaign in 2016. The FTC fined Facebook $5 billion in the wake of the Cambridge Analytica scandal, saying the company had violated a 2012 agreement with the FTC to protect user data. Shareholders want the defendants to reimburse Meta for the FTC fine and other legal costs, which the plaintiffs estimate total more than $8 billion.

Read more: https://www.cnn.com/2025/07/16/tech/facebook-privacy-practices-trial-zuckerberg

10 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies

bucolic_frolic

(51,623 posts)
1. Lawsuits and shareholder proposals are grossly underutilized
Wed Jul 16, 2025, 05:44 PM
Jul 16

They have not been invalidated by SCOTUS yet. But, they are very expensive to bring.

ancianita

(41,183 posts)
2. Is there no filing? Is it because it's a Chancery Court? Why does business carve out a different court for itself
Wed Jul 16, 2025, 07:01 PM
Jul 16

away from society? Has this to do with international law if the defendants have global reach? Who exactly are the plaintiffs? Just different classes of shareholders? From just the US or from different countries? I have so many questions...
It just seems weird (probably due to my ignorance of corporate structures) to see the named defendants as Mark Zuckerberg, Sheryl Sandberg, Marc Andreesen, Peter Thiel, and Reed Hastings, owners of separate corporations. I wonder what the ramifications of this trial might be for tech, or government, and even law firms. I also wonder if media are keeping an eye on this trial.



Thanks for posting this puzzling but somehow important news.

BumRushDaShow

(157,315 posts)
3. LOL I just dove into the Time Tunnel to go back to 2018
Wed Jul 16, 2025, 07:18 PM
Jul 16

and found the old OP that first announced this suit - https://www.democraticunderground.com/10142226780

That pointed to a BBC article - https://www.bbc.com/news/technology-46627133

which in turn referenced a WaPo article here - https://www.washingtonpost.com/technology/2018/12/19/dc-attorney-general-sues-facebook-over-alleged-privacy-violations-cambridge-analytica-scandal/

WaPo linked to a copy of the original suit (PDF) - https://oag.dc.gov/sites/default/files/2018-12/Facebook-Complaint.pdf

I expect it has been updated/modified since but at least this is a start!

ETA - have to find the shareholder suit!

ancianita

(41,183 posts)
4. Thanks for all your valuable research! I've not been able to find a link to a filing, so I've no idea what it all means.
Wed Jul 16, 2025, 07:26 PM
Jul 16

BumRushDaShow

(157,315 posts)
6. I *think* I may have found what will be the starting docs for this
Wed Jul 16, 2025, 07:49 PM
Jul 16

I found a Forbes article that helped - https://www.forbes.com/sites/forbesbooksauthors/2025/07/16/the-role-of-empathy-in-effective-leadership/

Of interest from the above link -

(snip)

Who Are The Key Players Being Sued?

Defendants in the lawsuit include Zuckerberg, Sandberg and former Facebook Partnerships VP Konstantinos Papamiltiadis, whom the lawsuit alleges knowingly made deals with third-party apps that violated the 2012 FTC agreement. The lawsuit also names Andreessen, Thiel and Hastings, who were board members at the time and allegedly knew about the non-compliance with the FTC consent order, given their companies were given favorable agreements that allegedly violated it. Other Facebook board members named in the complaint are former Bill & Melinda Gates Foundation CEO Dr. Susan Desmond-Hellman, eBay CFO Peggy Alford and former American Express CEO Kenneth Chenault. The lawsuit additionally names two former White House chiefs of staff as defendants based on their roles on Facebook’s board: Erskine Bowles, who served during Bill Clinton’s presidency, and former chief of staff to President Joe Biden, Jeff Zients, who served on the board prior to his role at the White House.

(snip)


Plus references in a Bloomberg Law article - https://news.bloomberglaw.com/ip-law/meta-trial-over-cambridge-analytica-scandal-tests-chancery-court

PLAINTIFFS' FILING BRIEF (PDF viewer) - https://www.bloomberglaw.com/public/desktop/document/CONFORDERCONSw20200363JRSand20210617JRSINREFACEBOOKINCDERIVATIVEL/11?doc_id=X4BIANAFL5999PPNFJS833FK9K9

DEFENDENTS' FILING BRIEF (PDF viewer) - https://www.bloomberglaw.com/public/desktop/document/CONFORDERCONSw20200363JRSand20210617JRSINREFACEBOOKINCDERIVATIVEL/13?doc_id=X230M72V1L18NG9NVNLNCTQ6N6F

ancianita

(41,183 posts)
8. Thank you for all this, especially the Briefs.
Wed Jul 16, 2025, 09:21 PM
Jul 16

Reading the Plaintiffs (two pension funds and an individual?) Preliminary Statement made me recall that around 2022 I got two $200+ checks from the 2012 lawsuit against FB's lying about privacy settings & selling data to third party app developers.

(No lawyer but I still like reading filings. They feel like a kind of citizen's homework assignment.)

Deminpenn

(16,933 posts)
9. Meta, like many US companies, is probably incorporated in Delaware
Thu Jul 17, 2025, 03:33 AM
Jul 17

because of Delaware's very businees friendly laws.

ancianita

(41,183 posts)
10. I understand that. Delaware has over 2,000,000 companies registered there, 67% of the Fortune 500.
Thu Jul 17, 2025, 08:48 AM
Jul 17

It's the jurisdiction site of most of corporate America.

BumRushDaShow

(157,315 posts)
7. Since this suit was filed by the actual shareholders of Facebook
Wed Jul 16, 2025, 08:22 PM
Jul 16

(and the original was filed before it became "Meta" ) then they apparently just want the amount of the fine (which I think was $5 billion), and legal costs among other stuff (that they estimated brings the total up to $8 billion) that "they" ended up paying out of their investment, to be refunded personally by Zuckerberg and those affiliated with him on Facebook's Board.

Latest Discussions»Latest Breaking News»Facebook privacy practice...