Facebook Inc. lost a fight to withhold records in an investor lawsuit probing whether the company overpaid in a record $5 billion settlement with a government regulator in 2019 to protect founder Mark Zuckerberg in the wake of the Cambridge Analytica privacy scandal.
A Delaware judge ruled Wednesday that Facebook must furnish some internal files to Rhode Island’s public employee pension fund, which is questioning how the company came to terms with the U.S. Federal Trade Commission in the agency’s sweeping investigation of the misuse of consumer data.
The pension fund is looking into whether Facebook directors agreed to pay an additional $2 billion as part of the FTC settlement over the fallout from Cambridge Analytica to shield Zuckerberg from facing personal liability in the case. Delaware law gives investors access to internal files if they raise legitimate questions about mismanagement or self-dealing by directors.
The ruling comes as Facebook, Amazon Inc. and other U.S.-based technology companies face an ongoing FTC probe about how they collect and handle user information, including data about children and teens.
Andy Stone, a Facebook spokesman…
Schrems II Judgment Day
The Court of Justice of the European Union (“CJEU“) issued its judgment today in …
