Mark Zuckerberg faces $8B trial over Facebook data misuse

Mark Zuckerberg faces $8B trial over Facebook data misuse
17 Jul 2025

An $8 billion trial has begun against Mark Zuckerberg and other current and former leaders of Meta, initiated by the company's shareholders.

The plaintiffs allege illegal data harvesting from Facebook users, claiming this practice violated a 2012 agreement with the US Federal Trade Commission (FTC).

Jeffrey Zients, former White House chief of staff under President Joe Biden and a former Meta director, is expected to be one of the first witnesses in this non-jury trial.

Other high-profile defendants include Sandberg, Andreessen, Thiel, Hastings
Notable figures

The case will also see testimony from other high-profile defendants such as former Facebook COO Sheryl Sandberg, current board member Marc Andreessen, and former board members Peter Thiel (co-founder of Palantir Technologies) and Reed Hastings (co-founder of Netflix).

Their perspectives will underscore whether the board acted prudently or ignored "red flags" regarding data protection.

Lawsuit filed after FTC fine for data misuse
Scandal fallout

The case stems from the 2018 Cambridge Analytica scandal, where data from millions of Facebook users was compromised by the now-defunct political consulting firm.

The FTC had fined Facebook $5 billion for violating a 2012 agreement to protect user data.

Shareholders are now seeking reimbursement for this FTC fine and other legal costs, which they estimate to be over $8 billion.

Defendants deny allegations, call them 'extreme'
Defense strategy

The defendants have denied the allegations, calling them "extreme."

They argue that evidence will show Facebook engaged an outside consulting firm to comply with the FTC agreement and was a victim of Cambridge Analytica's fraud.

Meta, which is not a defendant in this case, has said it has invested billions into user privacy protection since 2019.

If successful, the case would mark one of the first times a Delaware court holds senior executives personally liable for board oversight failure.

Plaintiffs allege Zuckerberg anticipated scandal would lower stock
Unprecedented case

This lawsuit is the first of its kind to go to trial, alleging that board members knowingly failed to oversee their company.

The plaintiffs also allege that Zuckerberg anticipated the Cambridge Analytica scandal would lower the company's stock and sold his Facebook shares, pocketing at least $1 billion.

Defendants say evidence will show Zuckerberg didn't trade on inside information and used a stock-trading plan designed to guard against insider trading.