WILMINGTON, Delaware, Jan 21 (Reuters) - Meta Platforms' ( META )
former chief operating officer, Sheryl Sandberg, was
sanctioned by a judge on Tuesday for deleting emails related to
litigation over Facebook's Cambridge Analytica privacy scandal,
despite being told to preserve the messages.
The judge, Vice Chancellor Travis Laster, of Delaware
Chancery Court, said evidence showed Sandberg used a personal
account under a pseudonym and erased messages that were likely
relevant to the shareholder lawsuit.
The sanction will make it harder for Sandberg to tell her
side of the story and avoid liability at the eight-day, non-jury
trial scheduled for April. The judge also ordered her to pay the
expenses related to the sanctions motion incurred by the
shareholders, which include California's huge teachers'
retirement system known as CalSTRS.
"Because Sandberg selectively deleted items from her Gmail
account, it is likely that the most sensitive and probative
exchanges are gone," Laster wrote in his opinion published on
Tuesday.
Meta and an attorney for Sandberg did not immediately
respond to a request for comment.
Sandberg had argued she was forthcoming about the personal
account and rarely used it for business and when she did, others
were copied on the messages so the information was preserved.
Laster imposed a higher standard of "clear and convincing
evidence," rather than "preponderance" of evidence, for
Sandberg's affirmative defenses, which are her arguments and
evidence for why she should not be held liable.
The case was brought in 2018, when it emerged that Facebook
allowed data from millions of users to be accessed by Cambridge
Analytica, a political consulting firm that worked for Donald
Trump's successful campaign for U.S. president in 2016.
Shareholders sued the company's directors and officers for
allegedly harming investors by continually violating a 2012
consent order with the Federal Trade Commission to protect
users' data.
Shareholders also allege the company's board bargained to
pay a larger fine of $5 billion to the FTC in 2019 so that
founder Mark Zuckerberg would not have personal accountability.
Zuckerberg is expected to be deposed for a second time before
the start of the trial, according to court records.
In 2023, Laster refused to dismiss the lawsuit, which he
said was a "case involving alleged wrongdoing on a truly
colossal scale."
Shareholders also asked Laster to sanction Jeffrey Zients,
who was former President Joe Biden's chief of staff and who also
used and deleted personal emails when he was on Meta's board.
The judge said that Zients' messages were less pertinent because
he joined the Meta board in 2018, after the Cambridge Analytica
scandal, and was not a company officer.