Meta Platforms—Meta board settled $190M shareholder lawsuit over failure to oversee privacy compliance and protect Zuckerberg from FTC accountability
In November 2025, Meta's board of directors settled a shareholder derivative lawsuit for $190 million. Shareholders alleged that board members failed to properly oversee compliance with a 2012 FTC consent decree on user privacy, and that they improperly agreed to the $5 billion 2019 FTC settlement specifically to shield Mark Zuckerberg from personal liability. The suit highlighted undisclosed conflicts of interest among board members, including allegations that Marc Andreessen provided Zuckerberg strategic advice during board negotiations over a stock restructuring.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Undisclosed Conflicts | +toward | primary | -1.00 |
| User Privacy | -against | secondary | -0.50 |
| Overall incident score = | -0.332 | ||
Score = avg(topic contributions) × significance (high ×1.5) × confidence (0.59)× agency (negligent ×0.5)
Evidence (1 signal)
Bloomberg reports Meta board resolved investors' privacy claims for $190 million
In November 2025, Meta's board of directors settled a shareholder derivative lawsuit for $190 million over allegations of failing to oversee privacy compliance and improperly shielding Zuckerberg from personal FTC liability.