On Wednesday, a high -share trial was launched, because Meta Platforms shareholders brought an action of $ 8 billion against Mark Zuckerberg and other current and former company leaders, accusing them that they did not comply with their legal obligations to protect Facebook users in 2012 with the US Federal Commission (FTC).
The case that was heard at Delaware’s Chancery Court in front of the chief judge Kathaleen McCormick focuses on the statement that the defendants consciously allowed Facebook to mistakenly about how their data were treated, especially at Cambridge Analytica.
In particular, the court began to testify by Neil Richards, an expert on the privacy of Washington University. He said “Publication of privacy on Facebook was misleading,” she emphasized the alleged disconnection between the public assurances of the company and its internal practices.
The Court follows its roots back to 2018, when it turned out that Cambridge Analytica, a political counseling that supported Donald Trump’s presidential campaign in 2016, incorrectly approached millions of Facebook users. After FTC’s unveils, she imposed a record fine on Facebook, quoting violations of the 2012 consent.
The shareholders are now demanding that Zuckerberg and other defendants, including former operating director Sheryl Sandberg, a member of the Board of Directors Marc Andreessen and former directors Peter Thiel and Reed Hastings, compensated the meta for a fine and other related legal costs.
It is also expected that Jeffrey Zates, the former Chief of Staff White House and a member of the META Council in 2018 to 2020, will provide proof.
The defendants who have denied any unlawful conduct claim that Facebook was deceived by Cambridge Analytica. It also claims that the company has used external advice to ensure compliance with the FTC agreement.
Although the meta is not mentioned as the defendant, the court proceedings are a rare case in which Caremark’s claims, claims that the directors failed to supervise proper supervision, proceeded in court. Such cases are usually difficult to demonstrate, according to Delaware law, but the courts in the state have shown a growing willingness to let them proceed in recent years.
The court will also arrive in the middle of a wider control of the role of Delaware as a business refuge. At the beginning of this year, the state lawmakers revised laws regulating an agreement with the control of shareholders such as Zuckerberg, and tightening the rules for calls for shareholders. While recent changes do not affect the CareMark claims, they followed meetings between civil servants and META representatives. Meta reportedly considered leaving Delaware for concerns related to his legal environment.
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Meanwhile, Andreessen Horowitz, a risk capital co -founded by Marc Andreessen, has already decided to reincorus in Nevada and quoted the legal unpredictability in Delaware, a nod to recent decisions such as Elon Muska’s package of $ 56 billion Tesla Pay.
Andreessen is to appear in court on Thursday.
In a separate accusation, the plaintiffs say Zuckerberg unloaded Facebook shares in front of Fallout Cambridge Analytic Fallout, allegedly expected a drop in stock price and profit by at least $ 1 billion. Defense claims that Zuckerberg’s transactions have been carried out through a predetermined business plan to prevent the solving of the initiated persons.
Meta refused to comment on the proceedings. However, the company has previously stated that since 2019 it has invested significantly in user privacy.
(With Reuters inputs)
(Tagstotranslate) Meta Platform (T) Mark Zuckerberg