Meta Platforms agreed to pay around $725 million to resolve a class-action lawsuit that involved Cambridge Analytica in a historic settlement. Reports emerged that Meta Platforms agreed to pay $725M to resolve the 2018 class-action lawsuit accusing the firm of letting Cambridge Analytica access the personal data of 87 million Facebook subscribers without their consent, based on a court filing revealed on December 22.
This settlement is the largest one on record in a US data privacy classic action case and the biggest-ever Meta has agreed to pay to resolve a class action lawsuit.
Meta Agrees To Pay A Massive Amount To Settle A 2018 Class-Action Lawsuit
Meta Platforms has now agreed to pay $725 million to settle the long-running class-action lawsuit claiming the Facebook owner let the British consulting firm Cambridge Analytica and many other third parties access the personal data of 87 million users, Reuters reported on December 23, 2022. This proposed arrangement was announced in a court filing published on Thursday.
This move represents the largest-ever settlement reached in a United States data privacy class action, based on plaintiffs’ lawyers. It is also the biggest payment Meta has agreed to pay to settle a class action lawsuit.
Derek Loeser and Lesley Weaver, lead lawyers for the plaintiffs, stated:
“This historic settlement will provide meaningful relief to the class in this complex and novel privacy case.”
Nevertheless, Meta refused to admit any misconduct as part of their settlement, which is pending approval by a federal judge in San Francisco. The tech behemoth stated that it had agreed to make the payment since it was “in the best interest of our community and shareholders.”
Meta Platforms said in a statement:
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“Over the last three years we revamped our approach to privacy and implemented a comprehensive privacy program.”
Meta Gave Trump-Linked Company Access To Personal Data Of 87M Users, Suit Claims
This reached settlement marks another major step for Meta toward resolving the class-action lawsuit filed by Facebook users back in 2018. This suit accused Meta of offering Cambridge Analytica, a British research company that worked for former US President Donald Trump’s 2016 campaign, unlimited access to the personal data of up to 87 million Facebook users.
In the last four years, users’ lawyers have gained extensive leverage to access Meta’s internal records and support their allegations that Facebook failed to protect their private data. Based on Bloomberg, Meta would have probably risked hundreds of millions of dollars if it had gone to trial.
Yet, the settlement marks another massive blow for the firm in 2022, which rebranded from Facebook to Meta in 2021 aiming to focus on the metaverse. The tech giant cut its workforce by 13% in November to cut costs. Meta’s expenses rose by around $22.1 billion in Q3 year-over-year, compelling the firm to announce a hiring freeze in September.