Shareholders outraged when they learned that Facebook spent $ 5 billion ‘lobby’ to keep Mark Zuckerberg from being sued after the data leak of 87 million users
- Tram Ho
CNet reported, Facebook has agreed to pay billions of dollars more in addition to the original fine that the US Federal Trade Commission (FTC) imposed in 2019. This action is to protect CEO Mark Zuckerberg from liability. individuals involved in a big data leak investigation. This information was filed by shareholders who expressed disagreement on Tuesday.
In lawsuits filed last month in Delaware’s Court of Chancery, two shareholder groups cited internal discussions among Facebook board members. Accordingly, they allege that the group agreed to overpay up to $4.9 billion in fines to cover for Zuckerberg, the company’s co-founder and largest shareholder, and COO Sheryl Sandberg.
“Zuckerberg, Sandberg and other Facebook executives have agreed to authorize a multi-billion-dollar settlement with the FTC as a measure to protect Zuckerberg from being named in the FTC’s complaint from being held liable. personal responsibility or even being asked to resign as CEO,” one of the contents of the lawsuit.
The FTC began investigating Facebook in 2018 after it emerged that Cambridge Analytica, a UK political consulting firm, accessed data from 87 million Facebook users without their permission. The agency’s investigation focuses on whether Facebook violated a legal agreement it has with the US government about keeping users’ data confidential.
Zuckerberg was named a co-defendant in the lawsuit in a draft complaint the FTC sent to Facebook in early 2019. The lawsuit alleges that Facebook’s attorneys have identified the company as facing close to a fine. $107 million, but the company’s board agreed to pay a $5 billion fine in exchange for Zuckerberg and Sandberg not being named in the indictment.
The lawsuit notes that on the same day the FTC deal was announced, the Securities and Exchange Commission announced it would fine Facebook $100 million as part of the settlement related to the social network’s investigation into fraud. data processing.
“The board of directors has never seriously examined Zuckerberg’s powers,” the shareholders said in one of the lawsuits. “Instead, it supported him, protected him, and paid out billions of dollars from Facebook’s budget to settle his affairs.”
Facebook and the FTC declined to comment on the matter.
Source : Genk