Mark Zuckerberg and directors of Meta Platforms Inc. have reached a settlement of $190 million concerning allegations of privacy violations related to the Cambridge Analytica scandal. Court filings indicate that the agreement addresses claims that the board failed to rectify ongoing issues concerning Facebook users’ privacy while also shielding Zuckerberg from personal liability. The settlement amount, disclosed in filings from the Delaware Chancery Court, had been kept confidential since a trial was suspended in July.
Investors in Meta accused the board of mishandling the fallout from the Cambridge Analytica data privacy scandal. They argued that in settling with the U.S. Federal Trade Commission for $5 billion, board members acted improperly to protect Zuckerberg from personal financial repercussions. The shareholders sought at least $7 billion in damages, asserting that the directors overpaid to avoid requiring Zuckerberg to contribute to the financial losses faced by the company. Although the settlement is described as a minimal recovery of 3%, Meta maintains that this agreement is not an admission of liability.
Separately, Caesars Palace has been fined $7.8 million by the Nevada Gaming Control Board for failing to comply with anti-money laundering regulations. This penalty arises from a case involving illegal gambling activities connected to Mathew Bowyer, an alleged bookmaker and former interpreter for baseball star Shohei Ohtani. Over the course of 2017 to 2024, Caesars Palace reportedly did not adequately verify Bowyer’s source of funds despite multiple alerts and an anonymous tip regarding his activities.
This marks the third casino to face fines related to Bowyer’s operations. Earlier this year, Resorts World was imposed a stipulated fine of $10.5 million, which was one of the largest penalties issued by the gaming board.
The developments involving both Meta and Caesars Palace highlight significant issues in corporate governance and regulatory compliance, underscoring the importance of vigilance in protecting consumer rights and upholding legal standards in the gaming industry.
