Meta Platforms Inc. has reached a settlement of $190 million regarding claims that its directors failed to address ongoing violations of Facebook users’ privacy. The settlement was disclosed in a filing with the Delaware Chancery Court and stems from a lawsuit by Meta investors who alleged that board members mishandled the fallout from the Cambridge Analytica data scandal. The lawsuit also claimed that the board improperly structured a $5 billion settlement with the U.S. Federal Trade Commission (FTC) to protect CEO Mark Zuckerberg from personal liability.
Court documents indicate that the amount of the settlement had been sealed following the suspension of a trial in July 2024. Meta shareholders originally sought at least $7 billion in damages, asserting that the directors had overpaid in the FTC settlement. They argued that this was done to prevent Zuckerberg from having to contribute personally to cover the company’s financial losses related to the scandal.
The settlement, which will be covered by an insurance policy for Meta directors, represents only a 3% recovery of the damages sought by shareholders. In its court filings, the company denied any wrongdoing and emphasized that the settlement should not be interpreted as an admission of liability.
Caesars Palace Faces $7.8 Million Fine
In a separate development, the Nevada Gaming Control Board has imposed a fine of $7.8 million on Caesars Palace for non-compliance with anti-money laundering regulations. This decision is part of a broader investigation into illegal betting activities linked to Mathew Bowyer, an illegal bookmaker associated with the former interpreter for baseball star Shohei Ohtani.
The regulatory body found that Caesars Palace failed to adequately verify Bowyer’s source of funds, allowing him to gamble millions of dollars between 2017 and 2024. The board had previously raised concerns about Bowyer’s activities, which were substantiated by an anonymous tip regarding his role as a bookmaker.
This penalty marks the third instance of a casino facing fines related to Bowyer’s operations. Earlier this year, Resorts World was fined $10.5 million in what was the second-largest fine issued by the gaming board.
Both cases highlight ongoing challenges within the financial and regulatory oversight of major corporations and casinos, emphasizing the need for stringent compliance measures in the rapidly evolving business landscape.
