Beautiful Virgin Islands

Monday, Jun 23, 2025

Facebook ‘overpaid in data settlement to avoid naming Zuckerberg’

Facebook ‘overpaid in data settlement to avoid naming Zuckerberg’

Lawsuit alleges settlement in Cambridge Analytica case driven by desire to protect founder

Facebook paid $4.9bn more than necessary to the US Federal Trade Commission in a settlement over the Cambridge Analytica scandal in order to protect Mark Zuckerberg, a lawsuit has claimed.

The lawsuit alleges that the size of the $5bn settlement was driven by a desire to protect Facebook’s founder and chief executive from being named in the FTC complaint.

Facebook was fined by the FTC in 2019 for “deceiving” users about its ability to keep personal information private, after a year-long investigation into the Cambridge Analytica data breach, where a UK analysis firm harvested millions of Facebook profiles of US voters.

“Zuckerberg, [chief operating officer Sheryl] Sandberg, and other Facebook directors agreed to authorise a multibillion 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,” said the shareholder lawsuit filed in Delaware last month but made public this week.

The suit quotes a commissioner on the FTC, Rohit Chopra, who said the government “essentially traded getting more money, so that an individual did not have to submit to sworn testimony and I just think that’s fundamentally wrong”.

The lawsuit claims that the settlement was approximately $4.9bn more than Facebook’s “maximum exposure under the applicable statute”.

If Zuckerberg had been personally named in the complaint he could have faced substantial fines for future violations and would have suffered “extensive reputational harm”, the suit claims. It adds: “The risk would have been highly material to Zuckerberg, who is extraordinarily sensitive about his public image and has been reported to have political ambitions.”

The suit also accuses Facebook of a lax approach to corporate governance, particularly regarding its founder. “The board has never provided a serious check on Zuckerberg’s unfettered authority. Instead, it has enabled him, defended him, and paid billions of dollars from Facebook’s corporate coffers to make his problems go away.”

In a post on his own Facebook page after the fine was announced, Zuckerberg said the company had transformed the way it handled users’ information.

“We’ve agreed to pay a historic fine, but even more important, we’re going to make some major structural changes to how we build products and run this company,” he wrote.

Facebook declined to comment on the new lawsuit but referred the Guardian to a recent tweet from Andy Stone, a spokesperson who wrote: “Portraying this as some kind of new allegation is wrong. The suggestion that we overpaid or underpaid on this settlement isn’t new and is something we will address during the litigation.”


The FTC declined to comment.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
×