A trial brought by Meta Platforms shareholders against Mark Zuckerberg and other current and former company leaders began on Wednesday, seeking $8bn in damages over claims they illegally harvested Facebook user data, violating a 2012 agreement with the US Federal Trade Commission (FTC).
The non-jury trial, presided over by Chief Judge Kathaleen McCormick of the Delaware Chancery Court, opened with testimony from privacy expert Neil Richards, who stated that Facebook's privacy disclosures were misleading. The case stems from the Cambridge Analytica scandal, where data from millions of Facebook users was accessed by the political consulting firm, leading to a $5bn FTC fine against Facebook.
Shareholders allege that the defendants, including former COO Sheryl Sandberg, venture capitalist Marc Andreessen, and former board members Peter Thiel and Reed Hastings, breached their oversight duties, making them liable for the FTC fine and legal costs. The defendants deny the allegations, arguing that Facebook was a victim of Cambridge Analytica's deceit and that they took steps to comply with the FTC agreement.
The trial is expected to feature testimony from Zuckerberg and other defendants, with Judge McCormick ruling on liability and damages after its conclusion. This case is considered a landmark Caremark claim, which are notoriously difficult to prove under Delaware corporate law, though recent years have seen more such claims proceed.
