This case has survived a rare motion to dismiss, elevating its significance and raising questions about corporate governance in the tech industry.

The case alleges that Meta breached a 2012 FTC agreement on user data protection, following the 2018 Cambridge Analytica scandal that exposed massive data misuse.

Today, Mark Zuckerberg is set to testify in a high-profile $8 billion trial concerning alleged privacy violations by Meta, the parent company of Facebook, Instagram, and WhatsApp.

The non-jury trial, scheduled to last eight days in Wilmington, Delaware, will focus on events from a decade ago, specifically examining whether Meta's leadership neglected their oversight responsibilities.

Shareholders, including California's State Teachers' Retirement System, claim Meta continued deceptive data practices after the 2012 agreement, seeking reimbursement for over $8 billion in fines and costs, including a $5 billion penalty from the FTC in 2019.

The trial will scrutinize Meta's compliance with the 2012 agreement and assess whether the company took adequate steps to protect user privacy, despite Meta's denial of wrongdoing.

This legal challenge is notable as it may be the first of its kind to address directors' failure in oversight duties, marking a potentially groundbreaking moment in corporate law.

Meta maintains that it acted appropriately and implemented strong privacy controls following the 2012 decree, asserting that its board and executives did not breach their responsibilities.

The case coincides with ongoing privacy concerns surrounding Meta, especially regarding its AI training practices and substantial investments in user privacy since 2019.

Legal experts suggest this trial could shed light on what Meta's board knew about the data scandal, amid rising trust issues involving Zuckerberg and the company's privacy practices.

Defendants including former COO Sheryl Sandberg and board members like Marc Andreessen, Peter Thiel, and Reed Hastings, have dismissed the allegations as extreme and maintain they acted in good faith.

Despite these legal challenges, Meta's stock has performed strongly, gaining over 20% in the past six months and outperforming the S&P 500.

Meta has also recently faced other legal battles, including an antitrust case from the FTC and a lawsuit over AI training data, which the company won in June, demonstrating ongoing legal resilience.