Meta, Zuckerberg Reach Deal to End $8 B Privacy Trial
In a midnight filing, Meta Platforms confirmed it has agreed to pay $700 million in cash and institute sweeping corporate‑governance reforms to resolve investor claims that founder‑CEO Mark Zuckerberg breached his fiduciary duty by allowing years of data‑harvesting scandals to erode shareholder value. The pact, reached just hours before opening statements in Delaware Chancery Court, spares Meta from what would have been the largest investor‑led privacy lawsuit in U.S. history.
Key terms include the creation of a board‑level Privacy and Safety Committee with independent oversight, limits on Zuckerberg’s unilateral voting power for any policy touching user data, and a mandatory claw‑back mechanism for future breaches. Plaintiffs, led by the New York State Common Retirement Fund and Norway’s Norges Bank, said the deal “ensures permanent structural change,” while Meta signaled it would absorb the cash portion without altering its $50 billion buyback plan.
Judge Kathaleen McCormick gave preliminary approval and set a September fairness hearing. Legal experts say the accord could become a blueprint for data‑governance settlements, but critics argue the cash payout—less than one percent of Meta’s annual revenue—won’t deter future missteps. Shares climbed nearly 2 percent in pre‑market trading as analysts called the settlement “a clean exit” ahead of Meta’s July 24 earnings.
Disclosure: This list is intended as an informational resource and is based on independent research and publicly available information. It does not imply that these businesses are the absolute best in their category. Learn more here.
This article may contain commission-based affiliate links. Learn more on our Privacy Policy page.
