Meta Settles Cambridge Analytica-Related Claims for $190 Million

Core Points - Meta Platforms Inc. has agreed to a $190 million settlement regarding claims of privacy violations and improper shielding of CEO Mark Zuckerberg from personal liability [1][2][3] - The settlement follows a lawsuit by Meta investors who alleged that the board mishandled the Cambridge Analytica scandal and overpaid in a $5 billion FTC settlement to protect Zuckerberg [2][5] - The settlement represents a recovery of 3% of the damages sought by shareholders, who claimed at least $7 billion in damages [3] Legal and Corporate Governance Changes - The settlement requires Meta to implement changes in corporate governance, including enhanced privacy monitoring and protections for employees reporting privacy issues [6] - Meta will establish a code of conduct for directors aimed at avoiding conflicts of interest and improving compliance with laws and regulations [6] Court Approval and Implications - The proposed settlement must be approved by Chancery Judge Kathaleen S.J. McCormick, and the $190 million will be paid through an insurance policy, returning to the company rather than individual investors [7][8] - The case is categorized as a derivative lawsuit, allowing investors to sue on behalf of the company [7] Context and Background - The lawsuit stems from the Cambridge Analytica scandal, where personal data from millions of Facebook users was collected without consent, impacting the 2016 election campaign [4][5] - Meta has indicated it may consider relocating its incorporation from Delaware, which is home to a significant number of Fortune 500 companies, amid ongoing legal scrutiny [11]