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HomeBusinessMeta will pay $725 million for class action lawsuit stemming from the...

Meta will pay $725 million for class action lawsuit stemming from the Cambridge Analytica incident.

Meta Platforms, Facebook’s parent company, has agreed to pay $725 million to settle user charges that the social media juggernaut unlawfully provided third parties access to their personal information, including political consulting firm Cambridge Analytica.

In 2018, Facebook acknowledged that the information of 87 million users had been unlawfully shared with Cambridge Analytica, prompting the class action lawsuit. Cambridge Analytica, which was shut down following the claims, was contentious because the data it obtained from Facebook was used to inform political campaigns.

The US Federal Trade Commission started an investigation into Facebook due to worries that the social media company had breached the conditions of a previous agreement with the agency, which obliged it to provide users with explicit notices when their data was shared with third parties.

In 2019, Facebook reached a landmark $5 billion settlement with the FTC. Around the same time, Facebook agreed to pay $100 million to resolve a dispute with the US Securities and Exchange Commission over allegations that the firm provided deceptive disclosures about the potential of misuse of user data.

The proposed settlement is the highest ever recovered in a data-privacy class action, and it is the most Facebook has ever spent to settle a private class action, according to attorneys for the users in a request for preliminary approval filed late Thursday in federal court in San Francisco.

Derek Loeser and Lesley Weaver, the co-lead attorneys for the plaintiffs, said in a statement “This historic settlement will provide meaningful relief to the class in this complex and novel privacy case.” “We have reached this point only because our teams of lawyers and professionals have dedicated years of hard work to this case. We are also immensely thankful to the court and the mediators.”

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FTX and Alameda File Request to Freeze $450 Million in Robinhood Stock in New York Court

 

 

 

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