A high-stakes shareholder lawsuit against Meta Platforms (NASDAQ:META) reached a sudden resolution last week, halting what could have become a landmark trial over user data privacy and board accountability. The last-minute settlement spared CEO Mark Zuckerberg from testifying in Delaware’s Court of Chancery and may have preserved what’s left of the state’s standing as the legal home for corporate America.
Meta shareholders accused 11 current and former directors—including Zuckerberg, Sheryl Sandberg, Peter Thiel, and Reed Hastings—of failing to prevent Facebook’s misuse of user data, which led to billions in regulatory fines. At the core of the case: a demand for $8 billion in damages, the same amount Meta reportedly spent settling previous data privacy claims, including a historic $5 billion fine from the FTC in 2019.
The timing of this settlement is critical. Delaware has faced a wave of corporate exits—coined "Dexit"—with companies like Dropbox (NASDAQ:DBX), Roblox, and Trump Media moving their legal incorporation to other states, citing shareholder-friendly rulings that disadvantage founders and executives.
Had the court ruled for the plaintiffs, it may have accelerated this trend. A ruling for the defense, on the other hand, could have been viewed as a retreat in the face of billionaire pressure.
Despite legal overhangs, Meta has continued to perform strongly in markets. As of the latest data, Meta’s key financials include:
Market Cap: $1.3+ trillion
TTM Revenue: Over $150 billion
TTM Net Income: ~$45 billion
Cash & Equivalents: ~$60 billion
Get the full picture using the Balance Sheet Statements API, which offers detailed quarterly and annual breakdowns of assets, liabilities, and shareholder equity for companies like Meta.
The final terms of the settlement are still being negotiated. However, the outcome of this case could set the tone for future shareholder litigation involving major tech platforms—especially as data privacy remains a growing regulatory concern.
For analysts and investors, it’s essential to track long-term fundamentals beyond headline risk. Tools like the Full Financial as Reported API offer raw data from 10-Ks and 10-Qs to validate performance under scrutiny.
