Meta Resolve Cambridge Analytica Data Leak Case by Paying $725 million

Here you will read details about how Meta Resolve Cambridge Analytica Data Leak Case? Meta Facebook’s parent company has agreed to pay $725 million to end a class action lawsuit alleging it misled users about its privacy policies and allowed third parties like Cambridge Analytica access to private user information.

The proposed deal would put a stop to the litigation that has been going on for four years since Facebook first revealed that the personal information of as many as 87 million users had been taken by Cambridge Analytica, a data analytics business that partnered with the Trump campaign. As a result of the data leak, Facebook was embroiled in a major scandal on a global scale and authorities on both sides of the Atlantic began investigating the company.

Hundreds of hours of depositions were taken including from dozens of current and former Facebook employees and millions of pages of records were obtained from Facebook and connected parties.

In a motion to accept the settlement filed on Thursday the users who settled with Facebook referred to it as the “biggest recovery ever attained in a data privacy class action and the most Facebook has ever paid to resolve a private class action.” They calculated that 250–280 million people could receive money as part of the class action settlement.

Meta Resolve Cambridge Analytica Data Leak Case the settlement proposal will be heard by a court in March

A judge will hear the settlement request in March and decide whether or not to approve it
Meta Resolve Cambridge Analytica Data Leak Case

Meta spokesman Dina Luce said in a statement, “We pursued a resolution since it’s in the best interest of our community and stockholders.” We have taken privacy very seriously over the past three years and have put in place a very thorough privacy program. We’re excited to keep developing secure, reliable services that our users adore.

During the course of the settlement, Meta made no admissions of guilt. To support their claim that the settlement is fair, the users who filed the lawsuit cited the steps Facebook has taken since the Cambridge Analytica scandal to better inform its users and limit access to their data by third parties.

In the high-stakes 2016 presidential election, when the victorious candidate won by razor-thin margins in several key states, the Cambridge Analytica leak began when a psychology professor harvested data on millions of Facebook users through an app offering a personality test and gave it to a service promising to use vague and sophisticated techniques to influence voters.

Later in 2020 the UK’s Information Commissioner’s Office released a report claiming that many of Cambridge Analytica’s claims about its capabilities were overblown. However, this chain of events was sparked by Facebook data being shared inappropriately, leading to probes and legal action.

Hearings were held, Zuckerberg went on an apology tour, and numerous modifications were made to the platform as a result of the scandal’s widespread criticism. In 2019, Facebook settled with the Federal Trade Commission (FTC) of the United States for $5 billion due to a privacy breach and with the Securities and Exchange Commission (SEC) of the United States for $100 million due to charges that it misled investors about the risks of exploitation of user data.

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