Meta Platforms Inc. has reached a settlement of $190 million regarding claims of privacy violations tied to the Cambridge Analytica scandal. The settlement, disclosed in a recent filing in the Delaware Chancery Court, resolves allegations that the company’s board members failed to address repeated breaches of Facebook users’ privacy. Additionally, the lawsuit claimed that they improperly structured a deal to protect CEO Mark Zuckerberg from personal liability.
The lawsuit, brought forth by Meta investors, accused the board of mishandling the fallout from the Cambridge Analytica data privacy crisis. Investors argued that the board’s decision to agree to a $5 billion settlement with the U.S. Federal Trade Commission (FTC) was aimed at shielding Zuckerberg from financial repercussions. They sought at least $7 billion in damages, claiming that the directors overpaid in the FTC settlement to prevent Zuckerberg from personally covering some of the company’s losses.
Although the settlement represents only a 3% recovery for shareholders, Meta has denied any wrongdoing. The company emphasized that this agreement does not constitute an admission of liability.
Caesars Palace Fined for Compliance Failures
In a separate development, the Nevada Gaming Control Board has imposed a fine of $7.8 million on Caesars Palace for failing to adhere to anti-money laundering regulations. This fine is part of an ongoing investigation centered on illegal bookmaker Mathew Bowyer, who is linked to the former interpreter of baseball star Shohei Ohtani.
The board alleged that Caesars Palace did not properly verify the source of funds for Bowyer, who reportedly gambled millions between 2017 and 2024. Despite multiple alerts and an anonymous tip suggesting Bowyer’s involvement in illegal betting, the casino continued to allow his transactions.
This incident marks the third time a casino has faced penalties related to Bowyer’s activities. Earlier this year, Resorts World received a $10.5 million fine, making it the second-largest penalty ever imposed by the gaming board.
These two significant stories highlight ongoing challenges in corporate governance and regulatory compliance within major organizations. As Meta navigates its legal battles and Caesars Palace addresses its compliance failures, the implications for shareholders and the broader gaming industry remain profound.
