Facebook parent Meta settles class-action lawsuit against Cambridge Analytica for $725M
Facebook’s parent company Meta agreed to a $725m settlement in a class-action suit related to the Cambridge Analytica Data Harvesting Scandal.
First reported Reuters announced the deal today. It comes almost four months after it was first reported by Reuters. after news first emerged Meta had suggested a settlement in Northern District of California, where the suit was filed four years ago. Meta has been resisting the lawsuit that consolidated multiple complaints from Facebook users over the years. Meta argued that people who signed up for the social network voluntarily did so. should have no real expectations Privacy — This assertion was made by the 2019 judge who is overseeing the case.so wrong.”
The scandal in question — one of many to reach the world on Facebook through the years — this refers to the now defunct U.K. political consultancy firm Cambridge Analytica that funnelled data from tens of millions of Facebook users through a survey app called MyDigitalLife, with a view toward influencing voters’ behavior using targeted ads. The privacy scandal that followed resulted in numerous fines and settlements with Meta (then Facebook). paying $5 billion In accordance with a deal with Federal Trade Commission (FTC), $100 million For misleading investors, the Securities and Exchange Commission (SEC). a modest £500,000 ($600,000) to U.K. Information Commissioner’s Office
It is also important to note that although Cambridge Analytica was the original cause of this class action lawsuit, it has been expanded to include third-parties who may have improperly used Facebook user information.
Face the music
Mark Zuckerberg, CEO and cofounder of Meta, was also the founder and CEO. had previously testified before Congress His answers to the scandal proved somewhat evasive Aside from that, a carefully controlled testimony The EU Parliament questioned the Meta top echelon shortly thereafter. Zuckerberg is now facing a lawsuit. former COO Sheryl Sandberg and Javier Olivan are the new COO were all set to testify Another hearing will be held. This is something Meta clearly did not want and will not happen now that a provisional deal has been reached.
In the filing The lawyers informed the court about the proposed settlement and concluded that it was an “extraordinary outcome” and resulted in the “largest data privacy class-action recovery and the highest amount Facebook has ever paid” in order to settle a private class action lawsuit.
They wrote:
Particularly striking is the amount of the recovery given that Facebook claimed that its users consented the practices and that no actual damages were suffered by the class. These characterizations are not supported by the Plaintiffs. However, they recognize that this case was complex and involved significant risks. In addition to the monetary relief obtained by Plaintiffs, Facebook has meaningfully changed the practices that gave rise to Plaintiffs’ allegations, as set forth in the declarations of two Facebook employees with knowledge of those facts.
Meta will once again be able to admit that they did not do wrong and said in a statement to Reuters that it was “in our best interests as shareholders and the community.” Additionally, every Facebook user in the U.S. will be eligible for a small amount of money from the settlement if they apply.
Although the settlement has not been rubberstamped yet, it is expected to be at a follow up hearing on March 2, 2023.
Meta hasn’t heard the end of Cambridge Analytica yet, though Washington, D.C. suing Zuckerberg personallyHe claimed that he was personally responsible in causing the scandal.