Source: Marketwatch
Read more: https://www.marketwatch.com/story/faceb ... latestnews
Facebook Inc. overpaid billions of dollars to the Federal Trade Commission as part of an agreement to keep CEO Mark Zuckerberg from being held personally liable for the Cambridge Analytica data breach, shareholders claim in a pair of lawsuits.
Two separate groups of Facebook FB, +0.50% shareholders filed suit Tuesday, Politico first reported, alleging that Facebook’s board approved an over-payment on its settlement with the FTC over the Cambridge Analytica scandal to protect Zuckerberg.
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The suit cited minutes from a subsequent Facebook board meeting, and claimed “Zuckerberg, [COO Sheryl] Sandberg, and other Facebook directors agreed to authorize a multi-billion settlement with the FTC as an express quid pro quo to protect Zuckerberg from being named in the FTC’s complaint, made subject to personal liability, or even required to sit for a deposition.”
In July 2019, Facebook agreed to pay the FTC a record fine of $5 billion to settle the investigation into the Cambridge Analytics data breach.
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The second lawsuit also claimed Facebook has failed in its obligation to protect the private data of its users, and alleged that the Cambridge Analytics’ data scraping was a “destined consequence” of Facebook’s business plan.