A landmark shareholder trial opened Wednesday in Delaware, as Meta Platforms’ investors pressed claims that CEO Mark Zuckerberg and other executives failed to prevent massive privacy breaches, violating a 2012 agreement with U.S. regulators.
The case stems from the Cambridge Analytica scandal, where data from millions of Facebook users was improperly accessed by the now-defunct political consultancy. Shareholders argue that Meta’s leaders, including former COO Sheryl Sandberg and board members like Marc Andreessen and Peter Thiel, neglected their duty to oversee user privacy, costing the company over $8 billion in fines and legal fees.
Privacy law expert Neil Richards testified for the plaintiffs, saying Facebook’s privacy policies were misleading. White House Chief of Staff Jeffrey Zients, who briefly served on Meta’s board, is expected to testify.
Meta is not named as a defendant, but the lawsuit—known as a Caremark claim—challenges the board’s role in systemic compliance failure. Such cases are rare and difficult to win, though Delaware courts have increasingly allowed them to proceed.
The trial is being overseen by Judge Kathaleen McCormick, who previously voided Elon Musk’s $56 billion Tesla pay package. A ruling on damages is expected months after trial. Meta declined comment, but has said it invested billions into privacy safeguards since 2019.
