September 24, 2021
2 mins read

FB paid billions to spare Zuck in Cambridge Analytica probe

The complaints, which cite internal discussions among Facebook’s board members, were filed in Delaware Court of Chancery last month…reports Asian Lite News

Facebook conditioned its $5 billion payment to the US Federal Trade Commission to resolve the Cambridge Analytica data leak probe on the agency dropping plans to sue Facebook CEO Mark Zuckerberg, shareholders allege in a lawsuit, Politico reported.

In suits made public Tuesday, two groups of shareholders claimed that members of Facebook’s board allowed the company to overpay on its fine in order to protect Zuckerberg, the company’s founder and largest shareholder. The complaints, which cite internal discussions among Facebook’s board members, were filed in Delaware Court of Chancery last month.

Facebook. (File Photo: IANS)

“Zuckerberg, 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,”one of the suits alleged, as per the report.

The lawsuits show that Facebook has still yet to move beyond the Cambridge Analytica scandal, even as antitrust, alleged privacy failures and other problems plague the company. The Senate Commerce Committee said last week that it was opening a probe into how the company downplayed its own research on how Facebook’s photo-sharing app Instagram worsens mental health and body image issues for teens, the report said.

ALSO READ: ‘Fake news’ flourished on Facebook during US presidential poll

In February 2019, the FTC sent Facebook’s lawyers a draft complaint that named both the company and Zuckerberg personally as a defendant, the shareholders said. The FTC also said in court that Facebook’s fine would have been closer to $106 million, but the company agreed to the $5billion penalty to avoid having Zuckerberg or Chief Operating Officer Sheryl Sandberg deposed and any liability for the CEO, the suit alleged.

“The Board has never provided a serious check on Zuckerberg’s unfettered authority,” one set of shareholders said. “Instead, it has enabled him, defended him, and paid billions of dollars from Facebook’s corporate coffers to make his problems go away.”

They also alleged that Zuckerberg and Sandberg both declined to be interviewed by PricewaterhouseCoopers, the firm hired to audit Facebook’s privacy compliance as part of a 2012 settlement with the FTC, allowed other managers to provide untrue statements about the company’s practices and never provided the board with copies of PwC’s audits, the report added.

Previous Story

Bangladesh PM demands urgent action on Rohingya crisis

Next Story

Pak bats for Taliban, even as tensions rock across Durand Line

Latest from News

VPR Award Ceremony at TVM on October 1

The award was instituted by Kerala Media Academy with the support of VP Ramachandran’s family. The award contains a cash prize worth one lakh rupees, a citation, and a plaque Acclaimed journalist Shashi

GST Reform Fuels Auto Boom

Maruti Suzuki, India’s largest carmaker, also witnessed exceptional momentum. On Day 1 of the reforms, it reported over 30,000 retail sales and approximately 80,000 customer enquiries. Bookings for small cars rose by

Tejashwi claims ‘public fury’ against Bihar govt

Tejashwi Yadav’s Bihar Adhikar Yatra draws thousands, with RJD claiming growing anger over corruption, crime and unemployment, while NDA leaders tout development ahead of crucial state elections. Rashtriya Janata Dal (RJD) leader

NHAI Eyes Rs 40,000 Crore

Of this, the TOT route accounted for 53 per cent of total monetisation during FY2019-FY2025. InvIT, introduced in FY2022, has steadily expanded its share, reflecting NHAI’s strategy to diversify its funding mechanisms

China on Flood Watch

Forecasts from the ministry, warned of heavy to torrential rainfall between August 9 and 11 in multiple areas, including Sichuan China’s State Flood Control and Drought Relief Headquarters has issued a Level
Go toTop

Don't Miss

How Facebook outage wreaked havoc on the global ad empire

It is a reminder to advertisers to have proactive mitigation

CMA directs Facebook to sell online GIF platform Giphy

“By requiring Facebook to sell Giphy, we are protecting millions