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Facebook parent company Meta has decided to pay $725 million to resolve a class action lawsuit. This legal action alleged the social media giant for providing access to 3rd parties over user data without their approval. A law firm, Keller Rohrback L.L.P, represented the plaintiffs in a court filing and announced the settlement.

The firm said it is the biggest-ever recovery obtained in a data privacy class action. However, the recent Facebook payment is massive to resolve a private class action. Keep in mind that the class action proceedings were initiated in 2018. Facebook accepted that Cambridge Analytica improperly collected information from 87 million users.

Meanwhile, Cambridge Analytica is a consultancy firm associated with the 2016 election campaign of former President Donald Trump. The legal action was enlarged to focus on the entire data-sharing practices of Facebook. The plaintiffs blamed Facebook for allowing access to various 3rd parties to their Facebook content and information without authorization.

Facebook Claimed not to be Involved in Any Wrongdoing

Plaintiffs also alleged that the social platform failed to properly monitor access and use of information from 3rd parties. Judges in the Northern District of California were overseeing the case and have now approved the settlement. A spokesperson for Meta said the company didn’t declare any wrongdoing and it was part of the case settlement.

He said the company took up a settlement in the best interest of the social platform’s shareholders and community. The platform has modified its approach to privacy and adopted an extensive privacy program. However, the Cambridge Analytica scandal generated global enrage and a commotion among regulators massively to investigate Facebook’s data practices.

FTC Alleged Facebook for Violating the Terms and Agreement

The US FTC (Federal Trade Commission) started an investigation into Facebook over concerns after receiving multiple reports. It examined that the social media platform had ruined previous terms and agreements with the federal agency. The agency’s agreement requires Facebook to give users clear notifications prior to sharing their data with 3rd parties.

The lead lawyers for the plaintiffs, Lesley Weaver and Derek Loeser, issued a joint statement. The statement said this historic settlement will give significant relief to the class in this crucial and essential privacy case. However, Meta didn’t admit any wrongdoing. But it is subject as part of the settlement to the approval of a federal judge in San Francisco.

Cambridge Analytica Scandal Energized Government Investigations

Meanwhile, the company said in a statement that the settlement was to the best use of the company’s shareholders and community. Meta said the company has adjusted its approach to privacy and imposed a handsome privacy program. The Cambridge Analytica scandal boosted government investigations into its privacy practices, lawsuits, and a US congressional hearing.

In 2019, Facebook agreed to a record settlement with the FTC worth $5 billion. The platform also granted $100 million in a settlement with the US SEC (Securities and Exchange Commission). The SEC alleged the company for misleading declarations about the risks involved in user data misuse. However, Cambridge Analytica closed after the 2018 allegations.

Facebook Used Data to Promote Political Campaign

Meanwhile, the allegations of Cambridge Analytica were controversial because the collected data from Facebook was utilized to promote political campaigns. Britain’s Channel 4 News filmed suggestions from Cambridge Analytica executives in 2018. They suggested the firm would use ex-spies, bribes, and fake news to support candidates to win votes.

Facebook changed its name to Meta and presented its significant initiatives to become a leader in the metaverse. Keep in mind that the metaverse term is typically used to refer to the virtual environment. Meanwhile, Meta’s Facebook is still one of the largest social media firms using this terminology. But the platform has experienced a slowdown in growth due to the advertising market slump and Appl’s IOS privacy rules.