Usually, when talking about Facebook, one of the most important social networks in the world, the news usually focuses on the immense fortune of its leaders or on its most recent developments, such as the incorporation of Reels or the use of artificial intelligence.
That is why, considering that executives such as Sean Parker, Sheryl Sandberg and Mark Zuckerberg have accumulated billions thanks to this platform, it is what is typically talked about, although the company is also distinguished by its constant innovation, staying relevant in the dynamic world of social technology.
However, Facebook has not been exempt from criticism that has been coming for years and continues to appear from time to time. In recent years, he has faced numerous public relations problems, with one of the most prominent being a $725 million class action settlement.
Context of the $725M Class Action Lawsuit Against Facebook
The root of this litigation dates back to the high-profile Cambridge Analytica scandal in 2018, where the British political consulting firm accessed the personal information of millions of Facebook users without their consent. Cambridge Analytica paid a Facebook app developer to obtain data on about 87 million users.
This data was allegedly and according to the plaintiffs of the class action lawsuit (and various journalistic investigations) used to influence the behavior of voters in the 2016 US presidential elections, generating a great public outrage.
Several lawsuits alleged violations of privacy laws and Facebook’s failure to protect users’ data. These lawsuits were consolidated into a single class action lawsuit in the Northern District of California, under the supervision of Judge Vince Chhabria.
Class Action Lawsuit Against Facebook: You Could Get Paid for the Use of Your Data
The process was extended from 2018 to 2024, with key moments such as:
- 2018: The Cambridge Analytica scandal breaks out.
- 2019: Facebook agrees to pay $5 billion to settle violations with the Federal Trade Commission (FTC).
- 2020: The lawsuits are consolidated into a single class action.
- 2022: Preliminary negotiations begin to reach an agreement.
- 2023: Facebook announces the $725 million deal.
- 2024: Two notices of appeal are filed, delaying the payment process.
Despite the fact that the lawsuit began six years ago, a final resolution has not yet been reached. The resolution of the appeals could take another year or more.
Details of the Class Action Settlement
The $725 million fund aims to compensate affected users, cover legal expenses and improve data privacy. Although the amount is significant, millions of Facebook accounts were impacted. The funds will be distributed among all the plaintiffs, but if the majority files a lawsuit, the individual compensation will be small.
Anyone who was a Facebook user in the US between May 24, 2007 and December 22, 2022 can file a claim. It is unclear whether the settlement administrator will open a new filing window due to the recent appeals. If this happens, the new deadline would probably be the end of 2024.
Legal Procedures and Challenges
Judge Vince Chhabria approved the terms of the settlement in October 2023. Facebook gave the money to a settlement fund run by Angeion Group, responsible for creating a website for claims, collecting and reviewing forms, and distributing the benefits of the settlement.
Despite the final approval, the class action is still ongoing due to appeals filed in 2024. According to Facebook’s user privacy agreements website, the appeal hearing might not happen until mid-2025.
The settlement administrator has not yet published final data on the number of claims received. Indications suggest that millions of users have filed complaints, highlighting the scale of the privacy breach.
Facebook has implemented several changes to its privacy practices, including improved consent mechanisms and stricter access controls. These adjustments are part of an effort to regain users’ trust.
Future Implications
The Facebook settlement sets an important precedent for future lawsuits over data privacy violations. It shows that the public can hold tech giants accountable for their failures through significant economic sanctions. This class-action lawsuit could also influence the way social media platforms approach technological innovation and data privacy in the future.
