In 2025, Facebook, operating under its parent company Meta Platforms, faced multiple significant legal challenges primarily involving privacy violations, antitrust concerns, and harm linked to its social media platforms. One of the most high-profile cases was a multibillion-dollar shareholder lawsuit accusing Mark Zuckerberg and other current and former Meta executives of damaging the company by allowing repeated privacy breaches affecting millions of Facebook users. Additionally, the Federal Trade Commission (FTC) pursued antitrust litigation against Meta, alleging that the company unlawfully maintained monopoly power in the social networking market.
Shareholder Privacy Lawsuit and Settlement
A group of Meta shareholders filed a lawsuit demanding $8 billion in damages from Zuckerberg and other executives, claiming they failed to adequately oversee compliance with privacy laws and contributed to incidents such as the Cambridge Analytica scandal, where user data was improperly harvested for political purposes. The lawsuit sought to hold executives personally liable for legal penalties and expenses paid by Meta. In July 2025, Zuckerberg and other defendants reached a settlement agreement, ending the trial abruptly, though the exact settlement amount remains undisclosed publicly.
Federal Trade Commission Antitrust Lawsuit
The FTC, joined by 46 states, filed an ongoing antitrust lawsuit against Meta since 2020, focusing on Meta’s acquisitions of Instagram and WhatsApp. The suit alleges Meta used its dominant market position to stifle competition and maintain monopolistic control over social networking. The trial began in April 2025 with Mark Zuckerberg testifying. The FTC seeks structural remedies, including forcing Meta to divest Instagram and WhatsApp, to restore competitive balance.
Additional Legal Issues and Class Actions
Beyond these landmark cases, Facebook faces various class-action lawsuits. One involves allegations that Facebook inflated its “Potential Reach” advertising metric, misleading advertisers about the true audience size and resulting in overcharges for ad placements. This case is proceeding toward trial in late 2025. Another ongoing multidistrict litigation addresses claims that Facebook’s platform design has caused mental health harms, particularly among adolescent users, linked to addictive behaviors and serious emotional distress.
Key Legal Claims
- Repeated violations of user privacy, improper handling of personal data, and failure to enforce privacy agreements.
- Antitrust violations through anti-competitive mergers, acquisitions, and exclusionary conduct.
- False and misleading representations to advertisers regarding audience reach and ad effectiveness.
- Failure to warn users and prevent harm related to addictive platform design and mental health consequences.
Impact and Broader Implications
The Facebook lawsuits underscore growing scrutiny of social media companies concerning user privacy, market dominance, and societal harm. They highlight the challenges regulators, shareholders, and users face in holding Big Tech accountable. Outcomes from these cases will influence how social media platforms manage data, competition, and consumer protections amid global calls for greater platform accountability and reform.
Frequently Asked Questions About the Facebook Lawsuit
What was the privacy lawsuit against Meta about?
Shareholders accused Zuckerberg and other leaders of allowing repeated privacy breaches that harmed Facebook’s reputation and finances, seeking $8 billion in damages.
What is the FTC antitrust case against Meta?
The FTC alleges Meta holds monopoly power through its acquisitions of Instagram and WhatsApp and seeks to force the company to divest these platforms to restore competition.
Has Facebook settled any major lawsuits?
Yes. In July 2025, Zuckerberg and other defendants settled the $8 billion shareholder privacy lawsuit, though details remain confidential.
What other lawsuits is Facebook facing?
Facebook is defending class actions related to misleading advertising metrics and mental health impacts on adolescent users caused by addictive social media design.
What could these lawsuits mean for users and advertisers?
The cases may result in increased privacy protections, changes in platform operations, monetary compensation, and enhanced regulatory oversight of social media companies.
Conclusion
The Facebook lawsuits in 2025 represent pivotal legal battles confronting one of the world’s largest social media platforms over privacy, competition, and user safety. As trials conclude and settlements emerge, the implications will resonate across the technology industry, shaping future policies on data privacy, fair competition, advertising transparency, and platform responsibility. Users, advertisers, regulators, and investors alike continue to watch closely as Meta navigates these landmark legal challenges.
