Shareholders sue Zuckerberg for $8 billion over privacy scandal

In the United States, an $8 billion class-action lawsuit against Meta CEO Mark Zuckerberg and other leaders has commenced, stemming from the 2016 Cambridge Analytica scandal. The trial, which began on July 16, 2025, in the Delaware Chancery Court, alleges that the company illegally harvested user data and violated a consent agreement with the U.S. Federal Trade Commission (FTC) established in 2012. Shareholders argue that Meta did not provide adequate disclosure regarding the misuse of their personal information, which was exploited by Cambridge Analytica during the Trump campaign. The FTC's subsequent $5 billion fine against Facebook highlighted these breaches and raised questions about governance within Meta’s leadership. Stakeholders want the defendants to reimburse Meta for the FTC's penalty, which along with additional legal costs, totals over $8 billion. The case is particularly significant, as it represents one of the first instances where board members are held accountable for oversight failures, creating potential precedent regarding corporate governance standards. The trial will showcase testimony from Zuckerberg and notable former executives including Sheryl Sandberg and Peter Thiel. Their defense suggests evidence will show they acted in good faith to comply with regulations and that Cambridge Analytica deceived Facebook in the data breach. As this complex legal battle unfolds, the ramifications for both Meta and the tech industry could be significant, especially concerning user privacy and corporate responsibility.