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Meta Urges US Appeals Court to Uphold $725 Million Privacy Settlement

By  |  February 8, 2025

Facebook’s parent company, Meta Platforms, has called on a U.S. appeals court to uphold a $725 million settlement resolving claims that the company violated user privacy. According to Reuters, Meta and attorneys involved in the settlement have defended the agreement as both fair and reasonable, urging the San Francisco-based 9th U.S. Circuit Court of Appeals to dismiss challenges questioning its adequacy.

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    The settlement stems from allegations that Facebook improperly allowed political consulting firm Cambridge Analytica and other third parties access to users’ personal information, a controversy that ignited global privacy concerns. While Meta has denied any wrongdoing, it agreed to settle the case to put the matter to rest, per Reuters.

    Initially approved by a lower court in 2023, the settlement has faced objections from some users who argue that Facebook should pay significantly more to affected consumers. Additionally, critics have contested the $181 million legal fee award to the plaintiffs’ attorneys, claiming it is excessive. However, as Reuters reported, lawyers representing the class-action plaintiffs have pushed back against these objections.

    Read more: Meta Files Complaint Against Apple with Brazil’s Antitrust Authority

    During Friday’s hearing, attorney Derek Loeser, representing the plaintiffs, emphasized that the trial judge conducted a rigorous review before approving the settlement. He stated that U.S. District Judge Vince Chhabria did not grant an easy approval, noting, “He puts us through our paces.” Addressing concerns over the attorney fees, Loeser argued that the $181 million award—representing 25% of the total settlement—was reasonable, given the scale and complexity of the litigation.

    The underlying lawsuit accused Facebook of facilitating widespread privacy violations by permitting Cambridge Analytica and other entities to collect user data without consent. The case brought renewed scrutiny to social media privacy practices and prompted calls for greater regulatory oversight.

    Source: Reuters