Facebook allegedly agreed to overpay on the original $106 million penalty so Mark Zuckerberg and Sheryl Sandberg could avoid deposition and personal liability
“The Board has never provided a serious check on Zuckerberg’s unfettered authority,” one set of shareholders said. | Chip Somodevilla/Getty ImagesFacebook conditioned its $5 billion payment to the Federal Trade Commission to resolve the Cambridge Analytica dataindividually, shareholders allege in a lawsuit.
“Zuckerberg, Sandberg, and other Facebook directors agreed to authorize a multi-billion settlement with the FTC as an express quid pro quo to protect Zuckerberg from being named in the FTC’s complaint, made subject to personal liability, or even required to sit for a deposition,”The FTC has never disclosed that it originally planned to name Zuckerberg personally in the lawsuit, and the agency's two Democrats at the time voted against the settlement in part because of the lack of personal...
They also alleged that Zuckerberg and Sandberg both declined to be interviewed by PricewaterhouseCoopers, the firm hired to audit Facebook’s privacy compliance as part of a 2012 settlement with the FTC, allowed other managers to provide untrue statements about the company’s practices and never provided the board with copies of PwC’s audits.
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