Meta pays $725 million to settle Cambridge Analytica lawsuit by Facebook users who said their personal information was inappropriately obtained

Meta Platforms has agreed to pay a record $725 million to settle a class-action lawsuit filed by Facebook users alleging the company gave third parties access to their personal information.

British research firm Cambridge Analytica, whose clients include former President Donald Trump, was the most prominent example of what the complaint described as a large-scale invasion of privacy. In 2018, it was revealed that Cambridge Analytica had unauthorized access to the personal data of approximately 87 million Facebook accounts.

The case was filed in the U.S. District Court for the Northern District of California in San Francisco. Judge Vince Chhabria must approve the settlement.

The case was an embarrassment for Facebook and its founder, Mark Zuckerberg, who was brought before Congress to answer questions about data security. What followed was more than a year of intense media coverage of how Trump used social media (with help from Russia) to anger Hillary Clinton in the 2016 election. Some advertisers pulled out of Facebook amid the Cambridge Analytica controversy.

“After more than four years of intense litigation, said claims s
exceptional result on behalf of the class. The proposed equation… is this
largest recovery ever in a class action privacy action, and the highest amount Facebook has ever paid
to resolve a private class action lawsuit,” the plaintiffs’ attorneys wrote in their motion for confirmation of the settlement.

“The extent of the recovery is particularly notable given that Facebook argued that its users consented to the practices in question and that the class suffered no real harm. Plaintiffs dispute these characterizations, but acknowledge that they took enormous risks in this new and complex case. In addition to the financial support the plaintiffs received, Facebook made significant changes to the practices that led to the plaintiffs’ allegations.”

In particular, the company no longer allows third parties to access user data through their friends; significantly improved its ability to limit and monitor how third parties obtain and use Facebook users’ information; and developed more robust tools to let users know what information Facebook collects and shares about them.

Meta admitted no wrongdoing as part of the settlement. A representative was not immediately available for comment. “We sought a settlement because it is in the best interest of our community and our shareholders. Over the past three years, we have reviewed our approach to privacy and implemented a comprehensive privacy program,” a Meta spokesperson told CNBC.

Facebook changed its name to Meta in October 2021.

Jill Goldsmith contributed to this story