Delaware, July 15 (V7N) – Meta CEO Mark Zuckerberg is expected to appear as a key witness this week in a high-stakes, eight-day non-jury trial where shareholders allege that Facebook—now Meta—operated as an illegal enterprise by allowing unauthorized harvesting of user data, in violation of a 2012 Federal Trade Commission (FTC) consent decree .
 
The lawsuit, brought by Meta shareholders including union pension funds, contends that Zuckerberg and several other current and former executives—such as Sheryl Sandberg, Marc Andreessen, Peter Thiel, and Reed Hastings—consistently neglected their duty of oversight, resulting in breaches like the 2018 Cambridge Analytica scandal . The plaintiffs aim to recover more than $8 billion in penalties paid by Meta, including the record $5 billion FTC fine imposed in 2019 .
 
Shareholders also assert that Zuckerberg may have sold over $1 billion of his Meta stock based on non-public, scandal-related information . The defense argues there is no proof of wrongdoing and highlights Meta's significant investment—over $8 billion since 2019—in improved privacy compliance systems .
 
This case marks the first time a Delaware court is addressing a “Caremark” claim—alleging directors failed in their fiduciary duty to monitor corporate compliance—rather than dismissing it outright . Observers note the trial may influence future corporate governance standards and accountability for tech giants .
 
The trial, overseen by Chancellor Kathaleen McCormick, is set to examine internal boardroom discussions and policies surrounding user privacy and data-sharing decisions stretching back over a decade .
 
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