Did Facebook Overpay FTC $5 Billion in Fine to Protect Mark Zuckerberg?


Facebook shareholders have reportedly alleged that the social media big overpaid $5 billion (roughly Rs. 36,928 crores) to the American antitrust watchdog to guard CEO Mark Zuckerberg from private legal responsibility associated to the Cambridge Analytica information leak probe. The shareholders stated to have alleged in two lawsuits, which have been filed final month however made public on Tuesday, that Facebook’s board allowed the corporate to pay additional on prime of the positive sought by the Federal Trade Commission (FTC) in 2019. The lawsuits, reportedly filed in Delaware, cite inside discussions among the many board members. Cambridge Analytica, a political consulting agency, is alleged to have improperly obtained private information of 87 million Facebook customers for promoting through the 2016 US Presidential elections.

In an extended Twitter thread, Jason Kint, the Chief Executive Officer of Digital Content Next, a commerce group for digital content material producers, outlined the main factors of the lawsuits that collectively run over 600 pages. He known as it the “mother of all lawsuits”.

He primarily outlined 4 plaintiff allegations, which included Facebook spending billions to guard Zuckerberg personally and that the CEO misled the US Congress whereas showing earlier than it in reference to the Cambridge Analytica probe in April 2018.

The FTC started investigating Facebook in 2018, specializing in whether or not the corporate violated a authorized settlement it had with the US authorities to maintain its customers’ information personal.

The complaints say the defendants, who embody Facebook COO Sheryl Sandberg, have been conscious of the risk Facebook’s “illegal course of conduct” posed to the corporate, which was akin to an “epic governance failure”.

On Insider buying and selling allegations, Kint stated they relate to a whole lot of thousands and thousands to billions made by insiders who would have been conscious or uncared for their governance duties.

Concluding the tread, the DCN chief stated that everybody studying the posts ought to needless to say these are plaintiffs’ claims.

The Twitter thread particularly factors out an allegation the Facebook shareholders have made within the lawsuits that Zuckerberg, throughout his testimony earlier than the US Congress, claimed Facebook would not gather information from different apps. Kint stated, “It (the lawsuit) doesn’t mince words. ‘The Zuckerberg testimony quoted in the immediately preceding paragraph is materially false and misleading’.”

On the identical day the FTC settlement was introduced, the Securities and Exchange Commission introduced it might positive Facebook $100 million (roughly Rs. 7.38 crores) as a part of a settlement.

This week on Orbital, the Gadgets 360 podcast, we focus on iPhone 13, new iPad and iPad mini, and Apple Watch Series 7 — and what they imply to the Indian market. Orbital is out there on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.


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