Meta shareholders sue Zuckerberg, Thiel and Sandberg for $8bn over FTC fines

Core Points - An $8 billion trial against Meta Platforms shareholders has commenced, focusing on allegations that the company illegally harvested Facebook user data, violating a 2012 agreement with the FTC [1][5] - The trial features testimony from key figures including Mark Zuckerberg, Sheryl Sandberg, and other board members, with the plaintiffs claiming misleading privacy disclosures [2][3] - The case stems from the Cambridge Analytica scandal, which led to a $5 billion FTC fine against Facebook for data protection violations [4][5] Group 1: Trial Details - The trial is presided over by Chief Judge Kathaleen McCormick in a non-jury setting, with significant testimonies expected from high-profile defendants [2][3] - The plaintiffs are seeking reimbursement for the FTC fine and other legal costs, estimated to exceed $8 billion [5] - The defendants have characterized the allegations as "extreme" and assert that Facebook took measures to comply with the FTC agreement [6][7] Group 2: Legal Context - This lawsuit is notable as it is the first of its kind to go to trial, alleging that board members failed to oversee their company effectively [7] - Known as a Caremark claim, such lawsuits are challenging to prove under Delaware corporate law, although recent trends show an increase in these claims being allowed to proceed [8] - The trial follows recent changes in Delaware corporate law aimed at making it more difficult for shareholders to challenge deals with controlling shareholders [9][10] Group 3: Additional Allegations - Plaintiffs also allege that Zuckerberg sold Facebook shares anticipating a decline in stock value due to the Cambridge Analytica scandal, profiting at least $1 billion [12] - Defendants plan to present evidence that Zuckerberg did not engage in insider trading and followed a stock-trading plan designed to prevent such actions [12]