Meta to pay $725M to settle Cambridge Analytica claim: To resolve a lawsuit accusing it of providing Cambridge Analytica and other third parties access to millions of users’ private information, Facebook parent firm Meta Platforms Inc. has agreed to pay $725 million.
In what plaintiffs claim may be the most significant U.S. class-action privacy settlement ever, the proposed deal would finance payments to Facebook users based in the country, according to a court filing late Thursday.
In August, Meta made a general settlement agreement, but no specific financial terms were given. According to the court filing, a definitive deal was reached on Thursday and is currently awaiting the court’s approval.
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The deal is “in the greatest interest of our community and stockholders,” a Meta spokesman said on Friday. The business claimed it “revamped our approach to privacy and created a robust privacy program” over the previous three years.
The lawsuit was prompted by information that the now-defunct British consulting firm Cambridge Analytica, which assisted U.S. President Donald Trump’s 2016 campaign, had inappropriately acquired and used Facebook user data. Later, Meta revealed that information of up to 87 million Facebook users, including more than 70 million in the United States, may have been affected.
After the event, Meta, known as Facebook, consented to pay fines in the United States and the United Kingdom. Following a $5 billion settlement reached in 2019 with the U.S. Federal Trade Commission, it also modified its privacy practices.
A reorganization of its board of directors was one of the changes Meta made in the FTC agreement to improve data practices and agreements monitoring. The FTC looked into whether Cambridge Analytica’s access to data violated a consent decree the social media platform signed with the commission in 2012, which required it to protect user privacy better.
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After the Facebook data claims, Cambridge Analytica stopped shop. The company has landed political consulting jobs in the United States by promising to use data to profile people and sway them with political messages that cater to their fundamental needs and concerns. However, some former customers claimed the business had trouble delivering its sweeping promises.