Meta agrees to $725M settlement in Cambridge Analytica case

Facebook parent company Meta agreed to pay $725 million to settle a privacy class-action case accusing the social media giant of allowing consulting firm Cambridge Analytica, and other third parties, access to user’s information.

Attorneys representing Facebook users said in an announcement Friday the proposed settlement marks the largest sum ever of a privacy class-action case in the U.S.

“This historic settlement will provide meaningful relief to the class in this complex and novel privacy case. We have reached this point only because our teams of lawyers and professionals have dedicated years of hard work to this case. We are also immensely thankful to the Court and the mediators,” Derek Loeser and Lesley Weaver, lead lawyers for the plaintiffs, said in a statement. 

The settlement is subject to approval by a judge. 

The case was initiated after news in early 2018 that British firm Cambridge Analytica harvested information from up to 87 million Facebook users, and expanded later to target Facebook’s data sharing practices more broadly.

It claimed that the social media company granted third parties access to Facebook information without users’ consent and failed to adequately monitor that alleged access.

As part of the settlement, Meta did not admit to wrongdoing. 

Meta spokesperson Dina Luce said the company pursued a settlement “as it’s 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. We look forward to continuing to build services people love and trust with privacy at the forefront,” Meta added. 

The proposed settlement deal comes after Facebook paid $5 billion to settle a Federal Trade Commission (FTC) case over its handling of user data and the Cambridge Analytics scandal, and $100 million to the Securities and Exchange Commission (SEC) over charges about misleading investors based on the scandal.