Latest news with #privacy violation
Globe and Mail
2 days ago
- Business
- Globe and Mail
Privacy Failures at Center of Landmark Meta (META) Board Case
Mark Zuckerberg is poised to testify as lead witness in an $8 billion shareholder suit alleging he ran Facebook (META) as an unlawful enterprise that enabled widespread data harvesting without user consent. Shareholders of Meta Platforms (META) are suing Zuckerberg and other executives over violations of a 2012 FTC privacy agreement, seeking reimbursement for the record $5 billion fine and related costs stemming from the 2018 Cambridge Analytica scandal. Market Overview: Trial seeks to recoup $8 billion in fines from Zuckerberg, Sandberg and board members Defendants include Sheryl Sandberg, Marc Andreessen, Peter Thiel (PLTR) and Reed (NFLX) Hastings Non-jury case begins in Delaware Court of Chancery and spans eight days Key Points: Shareholders must prove directors breached their oversight duties under Delaware law Meta invested billions since 2019 in privacy safeguards amid ongoing AI scrutiny Plaintiffs allege Zuckerberg dumped stock for $1 billion profit ahead of scandal Looking Ahead: Watch for judge Kathaleen McCormick's rulings on oversight and reimbursement Assess implications for corporate governance and director liability standards Monitor Meta's continued investments in privacy and AI compliance efforts Bull Case: Meta's proactive investments in privacy safeguards and compliance since 2019 demonstrate a strong commitment to addressing past shortcomings, potentially strengthening its defense and reassuring regulators and investors. Mark Zuckerberg's testimony and the board's legal strategy could successfully argue that any stock sales were pre-arranged under compliance plans, mitigating allegations of insider trading and undermining the plaintiffs' case. The trial could set a precedent that clarifies director oversight duties without imposing overly punitive standards, offering Meta and other tech firms greater clarity and confidence in managing governance risks. Continued investments in privacy and AI compliance may help Meta rebuild trust with users, regulators, and partners, supporting long-term platform growth and competitive positioning. If the court finds that directors did not knowingly breach their duties, Meta could avoid significant financial penalties, preserve cash for innovation, and maintain strategic flexibility in a rapidly evolving digital landscape. A favorable outcome could reinforce Meta's board structure and governance practices, attracting institutional investors seeking strong oversight and risk management. Bear Case: The $8 billion shareholder suit exposes Meta and its leadership to significant financial and reputational risk, with potential for costly penalties and stricter future oversight if the court rules against the company. Allegations that Zuckerberg and other executives breached their oversight duties and profited from pre-scandal stock sales could erode investor confidence and trigger further legal or regulatory action. Renewed scrutiny of Meta's privacy practices—especially as it trains AI models on user data—may fuel ongoing public and political backlash, threatening user trust and platform engagement. A ruling that raises the bar for director liability could have far-reaching implications for corporate governance, making it harder for Meta and other tech companies to attract and retain top board talent. Even if Meta prevails, the trial may distract management, consume resources, and keep privacy concerns in the headlines, weighing on the stock and complicating strategic initiatives. Negative outcomes or damaging disclosures during the trial could embolden additional lawsuits or regulatory probes, compounding legal risks and operational uncertainty. While the trial revisits decade-old policies and board meetings, it unfolds amid renewed privacy concerns as Meta trains AI models on user data. Investors will watch closely as plaintiffs attempt the rare feat of proving directors knowingly violated the law, and as defendants argue Zuckerberg's stock trades were pre-arranged under a compliance plan.
NHK
15-05-2025
- NHK
Kyoto officers referred to prosecutors over secret filming allegations
Kyoto Prefectural Police Headquarters have sent papers to prosecutors on two officers who are suspected of secretly filming in women's restrooms. Police allege a male officer in his 20s installed a small camera inside a stall of a women's restroom at Nakagyo Police Station, where he worked, in February and March. He is also suspected of secretly filming women at train stations and on trains. About 120 videos, which were believed to have been taken without permission, were found on his camera and other devices. A male officer in his 40s is also suspected of setting up a smartphone in a women's restroom at his workplace, Shimogamo Police Station, in February and April. About 70 voyeuristic videos were stored on his smartphone. Both men have reportedly admitted to the allegations. The police headquarters suspended the officers for three months, but they have since resigned. The younger officer told investigators that he began secretly filming people when he was in high school. He said that, despite being a police officer, he had done something irreparable. The other officer reportedly said that he is sorry to the victims and the people of Kyoto. A chief inspector at the police headquarters apologized and vowed to take measures to prevent a recurrence and restore public trust.
