Meta Group has agreed to a settlement with Cambridge Analytica in court and is willing to pay $725 million. The legal dispute has been dragging on since 2018, after Meta shared user data with the data mining firm.
Meta agrees to pay $725 million
Because of the Cambridge Analytica scandal, Meta (then still Facebook) was supposed to pay $5 billion in fines. The background was that the company had illegally and unsolicitedly transmitted user data of up to 87 million Facebook users to the data mining company.
Meta has now agreed to a settlement payment of $725 million to put the class action lawsuit to rest. As The Verge reports, however, the settlement still needs to be approved by the relevant federal judges within the Northern District of California – though Meta does not admit to any errors.
In a press release, the law firm responsible, Keller Rohrback LLP, writes that the case has expanded since 2018 and now targets Facebook/Meta’s general third-party data sharing practices.
Settlement on historic scale
Further, the settlement is said to be the largest amount ever imposed to settle a class action privacy lawsuit within the US.
This also involves allegations that the Facebook group not only shared the data of third parties without their consent, but also that they failed to adequately monitor the access and use of this information.
Speaking to CNBC, a spokesperson for Meta said that they sought the settlement because it was “in the best interest of our community and our shareholders”. “Over the past three years, we have adapted our approach to privacy and implemented comprehensive privacy programs,” the Meta spokesperson continued.