An unprecedented trial has begun in Delaware’s Court of Chancery, where shareholders are seeking more than $8 billion from Meta’s current and former leadership, including CEO Mark Zuckerberg and COO Sheryl Sandberg, over serious allegations linked to the Cambridge Analytica data breach. Plaintiffs claim the executives failed to uphold a 2012 Federal Trade Commission order requiring strict user data protection—allowing unauthorized harvesting of personal information—and that this negligence led to the company’s record $5 billion fine in 2019.

The lawsuit centers on what are known as Caremark claims, arguing that the leadership breach a core duty to monitor and oversee the company’s compliance with legal requirements. It also accuses Zuckerberg of insider trading, suggesting he sold shares ahead of the scandal becoming public using privileged information. Defense lawyers contend the board was misled by Cambridge Analytica, responded promptly by hiring compliance firms, and strengthened privacy protocols in response.

In opening statements, privacy expert Neil Richards criticized Meta’s disclosures as misleading, pointing to continued privacy risks even after the FTC settlement. Among the first witnesses was former Meta director Jeffrey Zients, who stated that board discussions about settling the FTC fine were aimed at protecting the company—not shielding any individual executive.

High-profile board members, including Marc Andreessen, Peter Thiel, and Reed Hastings, are expected to testify later this week. Chancellor Kathaleen McCormick, who recently overturned Elon Musk’s Tesla pay package, will preside over the non-jury, eight-day trial. A ruling is expected several months after proceedings conclude.

This case represents a landmark test of board accountability in Delaware corporate governance, signaling that oversight failures may carry steep personal consequences for executives. The outcome could redefine how closely company leadership must monitor compliance in an era where personal data misuse has severe technical, legal, and reputational repercussions.