Meta, the popular virtual reality (VR) platform, will pay $725 million to settle a lawsuit related to Cambridge Analytica, the political consulting firm.
The Cambridge Analytica scandal began in 2016 when a former employee of the consulting firm, Christopher Wylie, revealed that the company had collected data from millions of unwitting Facebook users without their consent. This data was allegedly used to influence the outcome of the 2016 U.S. presidential election and the Brexit referendum in the UK.
In 2020, Meta was sued by a group of individuals who had their data collected by Cambridge Analytica without their knowledge. The lawsuit alleged that Meta was responsible for the data breach that enabled Cambridge Analytica to collect the personal information of millions of people.
The settlement agreement announced by Meta will require the company to pay a total of $725 million to resolve the claims. Of that amount, $20 million will go to the individual plaintiffs, $50 million will go to the states involved in the lawsuit, and $655 million will go to a fund established to benefit those affected by the data breach.
People affected by the data breach will be eligible to receive compensation from the fund, as well as access to additional resources such as identity protection services and additional educational materials.
Meta CEO Ryan Betts commented on the resolution of the lawsuit, stating: “We take the trust of our customers and the data privacy of our users very seriously. This settlement will bring resolution to the lawsuit and allows us to return our focus to the future of virtual reality.”
The Cambridge Analytica scandal continues to be a point of discussion in the media. It highlighted the importance of data privacy and the need for companies to take steps to protect the personal information of their users.
The settlement agreement shows that Meta is serious about ensuring that its user data is safe and secure. It also serves as a reminder to other companies that they must take steps to protect the personal information of their users if they wish to avoid similar lawsuits in the future.
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