Facebook Might Have Vastly Overpaid For 2019 FTC Data Privacy Settlement: Reuters

Facebook Inc (NASDAQ: FB) might have paid the Federal Trade Commission (FTC) a settlement amount of $4.9 billion over and above the maximum penalty for 2019’s alleged breach of user privacy post antitrust investigation based on Gibson Dunn attorneys court ruling cited by Vice Chancellor Joseph Slights of the Court of Chancery, Reuter reports.
Slights cited the paper by Gibson Dunn attorneys in his ruling directing Facebook to turn over documents to shareholders trying to determine if Facebook overpaid to protect Zuckerberg. “The documents already produced provide no insight into why Facebook would pay more than its (apparently) maximum exposure to settle a claim,” Slights said, pointing out that shareholders have the right to question the board’s thinking.
Facebook faced a maximum penalty of $104 million, according to the Gibson Dunn paper.
No clarity was provided behind the overpayment of the penalty.
Price action: FB shares are up 0.06% at $272.03 in the pre-market session on the last check Thursday.