Meta agrees to $725MM security breach settlement
A 2018 scandal involving the British consulting firm Cambridge Analytica is the subject of the lawsuit. In order to influence the outcome of the 2016 US presidential election, the business obtained private information from Facebook users.
The parent company of Facebook, Meta Platforms, has agreed to pay $725 million (€682 million) to resolve a claim for damages for giving access to user data to third parties, including the British research firm Cambridge Analytica.
Late on Thursday, the proposed settlement was made public in a court filing. The San Francisco Court has not yet given its approval.
It might put an end to one of Facebook’s longest-running privacy breach crises if it is authorised.
Why is the settlement significant?
The proposed payment, which is the largest ever in a US data privacy class action and the most that Meta will ever pay to settle a class action case, was lauded by the plaintiffs’ attorneys.
“This historic settlement will provide meaningful relief to the class in this complex and novel privacy case,” the Reuters news agency quoted the lead lawyers for the plaintiffs, Derek Loeser and Lesley Weaver, as saying in a joint statement.
Meta has yet to admit wrongdoing
However, the company said in a statement that the settlement was “in the best interest of our community and shareholders.” It added that since then, Meta has “revamped our approach to privacy and implemented a comprehensive privacy program.”
The company had agreed to the settlement in August. Yet, at the time, no details were announced, including on the sum agreed.
What is the case about?
It was discovered in 2018 that Cambridge Analytica had paid a Facebook app developer for access to the personal information of about 87 million Facebook users.
During the 2016 US presidential election, the information was utilised to target voters in favour of Republican nominee Donald Trump, who ultimately won the race. The users’ consent was not required to obtain the data.
Cambridge Analytica in now defunct
Mark Zuckerberg, the creator and CEO of Facebook, speaks during a joint hearing of the Senate Commerce, Science, and Transportation Committee and Senate Judiciary Committee on Capitol Hill in Washington, DC, on April 10, 2018.
Meta agrees to $725MM security breach settlement
According to the lawsuit, Facebook is not simply a social network but also a “data broker and surveillance firm” because of the privacy breach. An estimated 250 to 280 million Facebook users are included in the settlement.
Up to 25% of the payout is being sought by the attorneys. The number of users who submit legitimate claims for a share of the settlement will determine how much each user will get.
