Facebook's parent to settle Cambridge Analytica class-action case
Facebook was accused in the long-running lawsuit of allowing third parties access to user's personal information
Facebook owner Meta Platforms has agreed to pay $725 million to resolve a class-action privacy lawsuit.
The social media company was accused of allowing third parties, including Cambridge Analytica, to access users' personal information.
The proposed settlement would settle a long-running lawsuit prompted by revelations in 2018 that Facebook had allowed the British political consulting firm to access data of as many as 87 million users, according to a court filing.
Lawyers for the plaintiffs called the proposed settlement the largest to ever be achieved in a U.S. data privacy class action.
FACEBOOK PARENT SETTLES SUIT IN CAMBRIDGE ANALYTICA SCANDAL
Meta (formerly Facebook) corporate headquarters is seen in Menlo Park, California. (JOSH EDELSON/AFP via Getty Images / Getty Images)
It is also the most that Meta has ever paid to resolve a class action lawsuit.
"This historic settlement will provide meaningful relief to the class in this complex and novel privacy case," the lead lawyers for the plaintiffs, Derek Loeser and Lesley Weaver, said in a joint statement.
Meta did not admit wrongdoing as part of the settlement, which is subject to the approval of a federal judge in San Francisco. The company said in a statement settling was "in the best interest of our community and shareholders."
"Over the last three years we revamped our approach to privacy and implemented a comprehensive privacy program," Meta said.
TEXAS AG INVESTIGATING ZUCKERBERG-BACKED NONPROFIT OVER ELECTION CONCERNS
The nameplate of political consultancy, Cambridge Analytica, is seen in central London, Britain March 21, 2018. (REUTERS/Henry Nicholls / Reuters Photos)
Cambridge Analytica, now defunct, worked for Donald Trump's successful presidential campaign in 2016.
The company reportedly gained access to the personal information from millions of Facebook accounts for the purposes of voter profiling and targeting.
The information was obtained without users' consent from a researcher who had been allowed by Facebook to deploy an app on its social media network that harvested data from millions of its users.
Meta CEO Mark Zuckerberg (Getty Images | istock / Getty Images)
The scandal sparked government investigations into its privacy practices, lawsuits and a high-profile U.S. congressional hearing where Meta Chief Executive Mark Zuckerberg testified.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| META | META PLATFORMS INC. | 592.83 | +18.51 | +3.22% |
Investigations by state attorney generals are ongoing, and the company is fighting a lawsuit by the attorney general for Washington, D.C.
Facebook argued its users have no legitimate privacy interest in information they shared with friends on social media.
CLICK HERE TO READ MORE ON FOX BUSINESS
But U.S. District Judge Vince Chhabria called that view "so wrong" and in 2019 largely allowed the case to move forward.
Reuters contributed to this report.