Overview

• Meta and investors reached a confidential settlement on July 17 that abruptly ended the Court of Chancery trial in Delaware after only two days of hearings.
• The 2018 lawsuit accused Mark Zuckerberg, Sheryl Sandberg and other Meta executives of consciously violating a 2012 FTC consent order designed to protect user data.
• Shareholders had sought about $8 billion to cover the record $5 billion FTC fine and related expenses, alleging breaches of fiduciary duty by the board.
• The trial began July 16 with testimony from privacy expert Neil Richards and former director Jeffrey Zients before settlement talks halted further proceedings.
• By avoiding public testimony from top executives, the undisclosed agreement leaves unresolved questions about corporate accountability and future data-governance practices.