Meta Ex-COO Sheryl Sandberg Sanctioned in Lawsuit for Deleting Emails.
Sheryl Sandberg, the former Chief Operating Officer of Meta Platforms, has been sanctioned in an investor lawsuit for deleting emails that were crucial to legal proceedings regarding Facebook's Cambridge Analytica privacy scandal. On Tuesday, a Delaware Chancery Court judge imposed sanctions on Sandberg for deleting communications that had been explicitly instructed to be preserved, further complicating her defence in the ongoing litigation.
Judge's Ruling and Sanctions Imposed
Vice Chancellor Travis Laster of the Delaware Chancery Court made the ruling, stating that the evidence suggested Sandberg used a personal account under an alias and deleted messages likely important to the shareholder lawsuit. These actions occurred despite prior directives to retain such communications, an issue which has sparked significant concern in the ongoing case.
"Because Sandberg selectively deleted items from her Gmail account, it is likely that the most sensitive and probative exchanges are gone. Counsel’s failure to give a straight answer in Sandberg’s interrogatory responses or when answering plaintiffs’ questions supports an inference that Sandberg was not using an auto-delete function but rather picking and choosing which emails to delete.” Laster remarked in his opinion published on Tuesday.
The sanctions will likely have a considerable impact on Sandberg’s ability to defend herself during the upcoming trial, which is set for April. The judge also ordered that Sandberg cover the legal costs incurred by shareholders, including expenses from California's Teachers' Retirement System (CalSTRS).
Sandberg’s Defence and Stricter Legal Requirements
Sandberg has defended her actions, asserting that she was transparent about her use of the personal account. She claimed that she rarely used the account for business purposes, but when she did, she made sure to include others in the communications to preserve a record. However, despite this defence, Judge Laster set a higher threshold for her defence to succeed, requiring "clear and convincing evidence" to support her claim that she should not be held liable, a more stringent standard than previously applied.
Lawsuit Background and Accusations
The lawsuit was initiated in 2018 after it was revealed that Facebook had allowed the political consulting firm Cambridge Analytica to access data from millions of users. The controversy surrounding this breach, which affected Facebook’s privacy practices, has led shareholders to sue the company's directors and officers, claiming that they violated a 2012 consent order with the Federal Trade Commission (FTC) regarding user data protection. Shareholders further argue that the company's board negotiated a $5 billion fine with the FTC in 2019 to protect Mark Zuckerberg from personal liability.
"Because Sandberg selectively deleted items from her Gmail account, it is likely that the most sensitive and probative exchanges are gone."
Court records indicate that Zuckerberg is expected to be deposed for a second time ahead of the trial, as his involvement in the case remains a focal point. In 2023, Judge Laster dismissed attempts to have the lawsuit thrown out, describing the case as one involving "alleged wrongdoing on a truly colossal scale."
Further Sanctions Requested for Other Meta Figures
In addition to the sanctions imposed on Sandberg, shareholders have also requested that sanctions be placed on Jeffrey Zients, who served as a board member for Meta after becoming Chief of Staff under President Joe Biden. Zients had reportedly used personal emails for work-related matters during his tenure on Meta’s board. However, Laster noted that Zients’ communications were deemed less relevant, as he joined the Meta board after the Cambridge Analytica scandal had already occurred and did not hold an executive role within the company.
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