In a recent Bloomberg Law article, Thompson Coburn Corporate & Securities partner David Kaufman commented on the recent settlement of a $7 billion shareholder case involving allegations that Meta leaders ignored issues with Cambridge Analytica and used investor money to pay a $5 billion fine.
Despite the missed opportunity for a trial, the accord is still instructive, according to Kaufman, who said it offers an example of how far both sides of an oversight case can push before reaching a deal.
When corporate lawyers are asked, “Should I do this? Should I not do that?” the answer is usually, “You need to do what other directors do in like circumstances,” he said.
Read more (subscription required): Meta Deal Cuts Short Landmark Test of Corporate Oversight Law
