Meta CEO Mark Zuckerberg and members of the company’s board have reached a settlement in a long-standing shareholder lawsuit stemming from the infamous Cambridge Analytica privacy scandal. The deal comes just one day after trial proceedings began in Wilmington, Delaware.
The lawsuit alleged that Meta’s board overpaid the U.S. government in a $5 billion settlement reached in 2019, primarily to shield Zuckerberg from personal liability. Shareholders claimed the board conspired to protect the CEO’s reputation by agreeing to a larger-than-necessary penalty to prevent Zuckerberg from being named in federal charges related to privacy violations.
Sources close to the case confirmed the settlement on Thursday, though specific terms remain confidential. Meta declined to comment, and lawyers for both the plaintiffs and defendants have not responded to requests for further details.
The timing of the settlement is notable. Silicon Valley venture capitalist and Meta board member Marc Andreessen was scheduled to testify the same day, with Zuckerberg expected to appear in court on Monday. Other prominent figures such as former Meta COO Sheryl Sandberg and tech investor Peter Thiel were also expected to face questioning.
The Cambridge Analytica scandal, which came to light in 2018, involved the unauthorized harvesting of data from tens of millions of Facebook users for political profiling. The data was used to influence key events such as the 2016 U.S. presidential election and the Brexit referendum, sparking global outrage and renewed scrutiny over data privacy and tech industry ethics.
The trial, presided over by Delaware Chancery Court Judge Kathaleen McCormick — the same judge who previously voided Elon Musk’s pay package at Tesla — was anticipated to unveil behind-the-scenes details about Meta’s crisis response and internal governance during the scandal.
Jason Kint, CEO of Digital Content Next, criticized the outcome, stating, “This settlement may bring relief to the parties involved, but it’s a missed opportunity for public accountability.”
With Delaware’s role as the corporate home for many U.S. giants under scrutiny, the case adds pressure to Meta, which is reportedly considering relocating its corporate registration to another state, following Tesla’s move to Texas.
