Facebook's $725M Settlement—The Inside Scoop

If you were a Facebook user in the United States between May 24, 2007, and December 22, 2022.

What we observe is not nature itself, but nature exposed to our method of questioning.

Werner Heisenberg

We're back with a piping hot cup of legal tea that you won't want to miss. 17 million people are gearing up to receive their share of Facebook's jaw-dropping $725 million privacy settlement. This is not just big; it's potentially the largest class action lawsuit in U.S. history! So, let's put on our legal eagle glasses and dig into the nitty-gritty.

By the Numbers: 28 Million and Still Counting

First off, Lesley Weaver, the co-lead counsel for the plaintiffs, has been swamped with over 28 million applications for a cut of the settlement. Out of these, 17 million have been preliminarily validated. That's 17 million people who said, "Facebook, you can't play us!"

📊 Data Dive: According to the Federal Judicial Center, the average class action lawsuit in the U.S. has about 21.8 million members. This case is already exceeding the norm by a whopping 30%!

🚨 Red Flags & Duplicates:
Of the 28 million claims, 2 million were duplicates and 8 million were flagged as potentially fraudulent. That's nearly 36% of the total claims that are still under scrutiny.

Now, let's talk about the elephant in the room—deductions. The legal team is asking for $180 million in attorney fees, leaving $545 million on the table.

👩‍⚖️ Administrative Fees:
An administrator is appointed by the court to manage the claims. The cost for this is still up in the air, but industry standards suggest it could be up to 15% of the settlement fund.

👥 Plaintiff Payouts:
Each of the eight brave souls who represented all Facebook users will get $15,000. That's $120,000 off the top.

What's Left for the Average Jane and Joe?

After all these deductions, the remaining pot will be divided among the 17 million or more eligible recipients. The amount you get depends on your Facebook tenure. The estimated median payment? Just $30.

📈 Stat Alert: According to a Pew Research study, 69% of U.S. adults use Facebook. That means a significant portion of our mom community could be eligible for this settlement.

Judge Vince Chhabria has given the lawyers another week to file additional documents. Once he gives the green light, the payment process will begin. But beware, appeals could throw a wrench in the works.

The Real Culprit: Meta's Shady Business

Facebook's parent company, Meta, agreed to this payout to settle claims of sharing users' personal data with third parties. The most notorious recipient? Cambridge Analytica, the firm that backed Donald Trump's 2016 campaign. Meta says they're innocent, but we know better, don't we?

This is about more than just a legal win; it's about safeguarding our privacy and that of our families. Big Tech has exploited us for too long, and this settlement is a step towards accountability.

While $30 may not seem like a windfall, it's a symbol of justice served and a warning shot to Big Tech. We're watching, and we're not backing down.

In 2019, Facebook agreed to pay $5 billion to resolve a Federal Trade Commission probe into its privacy practices and $100 million to settle Securities and Exchange Commission claims that it misled investors about misusing users’ data.

Stay fierce and empowered

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