Mark Zuckerberg is set to testify this week in an $8 billion dollar shareholder trial accusing him and other top Meta executives of running Facebook as an illegal enterprise that enabled the unauthorized harvesting of user data.
Meta shareholders—including individual investors and union pension funds allege Zuckerberg and others repeatedly violated a 2012 consent agreement with the Federal Trade Commission to safeguard user privacy. The case stems from the 2018 revelation that political consulting firm Cambridge Analytica accessed data from millions of Facebook users ahead of Donald Trump’s 2016 presidential campaign.
The lawsuit seeks reimbursement for over $8 billion in costs Meta incurred following the scandal, including the FTC’s record-setting $5 billion fine in 2019.
Named defendants include former COO Sheryl Sandberg, board member Marc Andreessen, and former board members Peter Thiel and Reed Hastings.
The eight-day, non-jury trial begins Wednesday in Delaware’s Court of Chancery and will be overseen by Judge Kathaleen McCormick. It will center on whether Meta leadership violated oversight duties.
Plaintiffs argue Zuckerberg knowingly directed the company to continue deceptive data practices after the 2012 FTC deal, while the defense claims Meta acted in good faith, implemented oversight teams, and was deceived by Cambridge Analytica.
The lawsuit also accuses Zuckerberg of selling stock ahead of the scandal’s public disclosure, allegedly profiting over $1 billion. Defendants argue the trades were pre-scheduled and tied to philanthropic efforts.
