With billions of users worldwide, Facebook has faced numerous lawsuits over the years related to privacy violations, data breaches, and other issues. If you believe your rights have been violated by Facebook, you may be wondering if you can sue the social media giant and how much money you could potentially receive. Here’s an overview of some of the key considerations when it comes to Facebook lawsuits and settlement amounts.
Types of Facebook Lawsuits
There are several main categories of lawsuits that have been filed against Facebook:
- Privacy violations – Cases related to Facebook inappropriately sharing user data or tracking user activity without consent.
- Data breaches – Lawsuits stemming from hackers accessing Facebook user information.
- Misleading advertising practices – Suits alleging Facebook misled advertisers on metrics like video views or inflated its user base.
- Discrimination – Claims that Facebook enabled discrimination in housing, employment or credit ads on its platform.
- Securities fraud – Shareholder lawsuits asserting Facebook leadership misrepresented challenges to investors.
The types of plaintiffs who have sued Facebook include individual users, advertisers, shareholders and civil rights groups. The underlying allegations vary from case to case.
Notable Facebook Lawsuits and Settlements
Some of the most high-profile lawsuits against Facebook include:
- Cambridge Analytica scandal – In 2019, Facebook paid a record $5 billion penalty to the Federal Trade Commission (FTC) stemming from the scandal involving political consulting firm Cambridge Analytica improperly accessing data on 87 million Facebook users.
- Facebook video metrics – In 2019, Facebook agreed to pay $40 million to settle a lawsuit alleging it inflated video viewing metrics shared with advertisers. As part of the deal, it offered refunds to advertisers.
- Housing discrimination – In 2019, Facebook settled lawsuits related to discriminatory advertising for housing, employment and credit for $5 million, and agreed to change its ad targeting systems.
- 2018 security breach – In 2021, Facebook agreed to pay $650 million to settle a class action lawsuit over a 2018 data breach impacting 30 million users.
Beyond these major cases, Facebook has faced a multitude of smaller suits on issues ranging from privacy concerns to securities claims.
Settlement Amounts in Facebook Lawsuits
The settlement amounts in Facebook lawsuits have varied widely based on the specifics of each case:
- Cambridge Analytica – $5 billion
- Video metrics – $40 million
- Housing/employment discrimination – $5 million
- 2018 security breach – $650 million
For class action lawsuits comprised of many individual plaintiffs, settlement funds are often distributed based on how many valid claims are submitted. In the 2018 breach case, for example, claimants could receive up to $358 based on the number of participants. For larger lawsuits, settlements may also require Facebook to implement certain changes to its platform and business practices.
Key Factors in Settlement Amounts
Some of the key factors that can impact settlement amounts in Facebook lawsuits include:
- Number of users affected – Cases impacting millions of users tend to result in higher settlements.
- Severity of allegations – More egregious violations often yield higher payouts.
- Strength of evidence – Strong evidence supporting plaintiffs’ claims increases settlement leverage.
- Litigation costs – The projected expenses of prolonged litigation may motivate higher settlements.
- Publicity – Lawsuits generating greater public scrutiny may lead Facebook to settle faster.
Given its vast financial resources, Facebook typically seeks to settle suits quickly to avoid prolonged legal proceedings and negative PR. But the company has shown a willingness to fight lawsuits it views as meritless or excessive.
Individual Settlement Amounts
For class action lawsuits with a large pool of class members, individual settlement payouts are usually much smaller than the overall fund amount. In the 2018 breach case, the $650 million fund was divided among an estimated 245 million class members internationally. After attorney fees and costs, the average claimant payment was likely just a few hundred dollars.
In rare cases, individuals suing Facebook independently over significant harms may be able to recover larger damage amounts, particularly if they opt for a trial instead of pre-trial settlement. But legal experts say Facebook tends to fight stand-alone cases vigorously.
Taxes on Settlements
One important factor to keep in mind is taxes. In the U.S., lawsuit settlements and court awards are generally considered taxable income by the IRS. So if you receive a $500 settlement payment, you may owe income taxes on a portion of that amount.
Getting Started with a Lawsuit
If you believe you have grounds to sue Facebook, here are some tips on getting started:
- Document evidence – Save screenshots, emails, ads and other documentation related to your potential claim.
- Hire an attorney – An experienced class action attorney can assess if your case merits a lawsuit.
- Join a class action – If a class action related to your situation already exists, get information on joining as a member.
- Negotiate a settlement – If litigation is pursued, be prepared for Facebook to try to settle out of court.
- Understand the risks – Suing Facebook is no guarantee of reward and could potentially be dismissed or unsuccessful.
Conclusion
Settlement amounts from Facebook lawsuits vary substantially based on the circumstances of each case. While some major class actions have yielded hundreds of millions in settlements, individual payments are often much smaller after distribution. Consulting knowledgeable legal counsel is essential for determining if you have a viable case and the potential value. Be prepared for Facebook to aggressively fight lawsuits it views as unfounded.