Meta Sued by Pension Funds Over EU’s $1.3 Billion Privacy Fine

March 17, 2025

Meta Platforms Inc.’s leaders appear to have steered it into a record $1.3 billion EU fine by failing to clean up the data practices behind years worth of privacy scandals, two pension funds said in court papers Monday.

A union fund and Rhode Island’s employee retirement system sued the tech giant for internal company documents, claiming they have credible suspicions that Meta’s senior leaders are to blame for the “historic” penalty. The fine in May 2023 stemmed from a broader crackdown on the company for transferring the data of European users to US-based servers that provide backdoor access to American intelligence agencies.

Andy Stone, a spokesperson for Meta, didn’t immediately respond to an email seeking comment Monday. Facebook founder Mark Zuckerberg and other company leaders aren’t named as defendants.

The complaint, filed under seal in Delaware’s Chancery Court, will likely be made public within five days under confidentiality rules providing five days to redact sensitive information. But the pension funds—in related public filings describing the case—called the violations part of a larger pattern of improper or illegal data harvesting.

They cited the Cambridge Analytica data-mining controversy that came to light after President Donald Trump’s 2016 election, which led to a record $5 billion fine by the Federal Trade Commission.

A separate shareholder lawsuit over the FTC fine is set for an April 2 trial in the same elite business court. That case involves an array of overlapping claims, including the allegation that Zuckerberg agreed to a larger-than-necessary fine to escape the prospect of personal liability, effectively using investor money to get himself off the hook.

The new suit seeks documents under a law giving investors broad access to company files if they have tentative suspicions about self-dealing or other wrongdoing. A proposed overhaul of Delaware corporate law could significantly curtail records cases, which often seek to drum up fiduciary breach claims for future litigation.

The pension funds are represented by Grant & Eisenhofer PA. Meta hasn’t yet made a court appearance.

The case is N. Calif. Pipe Trades Trust Funds v. Meta Platforms Inc., Del. Ch., No. 2025-0291, complaint filed under seal 3/17/25.