Critical Mass With Law.com’s Amanda Bronstad: Billions at Stake in Meta Class Trial, AI Missteps Plague Class Actions and Mass Torts
By Amanda Bronstad, Law.com
July 30, 2025 – This week’s Critical Mass briefing dives into high-stakes legal battles and emerging challenges in the world of class actions and mass torts. From a blockbuster class trial against Meta with billions on the line to the growing impact of artificial intelligence errors in litigation, the legal landscape is as dynamic as ever. Here’s what’s making waves:
Meta Faces Massive Class Action Trial Over Cambridge Analytica Fallout
A monumental class action trial against Meta, the parent company of Facebook, has taken center stage in Delaware’s Court of Chancery, with potential damages reaching into the billions. The lawsuit, which stems from the infamous Cambridge Analytica privacy scandal, accuses Meta CEO Mark Zuckerberg and other company leaders of failing to disclose risks associated with the misuse of Facebook users’ personal data. Investors claim that Meta’s lapses in transparency violated a 2012 consent order with the Federal Trade Commission, leading to a $5.1 billion penalty and significant legal costs.
The trial, which abruptly paused after the first day to announce a settlement, has left many questions unanswered. No details of the settlement have been disclosed, and Meta’s communications team has remained tight-lipped. The case had been poised to feature testimony from Zuckerberg and former COO Sheryl Sandberg, alongside other high-profile board members like Marc Andreessen and Peter Thiel. Shareholders were seeking reimbursement for an estimated $8 billion in fines and legal expenses tied to the scandal. While the settlement halts the trial, its implications for corporate accountability in data privacy remain profound.
AI Slipups Create New Risks in Class Actions and Mass Torts
As artificial intelligence continues to infiltrate the legal industry, its missteps are becoming a growing concern for class action and mass tort attorneys. A recent incident in Boston highlighted the dangers of overreliance on AI tools. Cervantes Law, a firm involved in a multidistrict litigation, inadvertently used Microsoft’s AI-based Copilot tool, which altered quotes in case citations. This error prompted a federal judge to consider sanctions, underscoring the potential for AI to introduce inaccuracies that could jeopardize case integrity.
The problem isn’t isolated. Across the country, attorneys are grappling with AI-generated errors in legal documents, from misquoted precedents to fabricated case references. These slipups are particularly troubling in complex class actions and mass torts, where precision is paramount. Legal experts warn that while AI can streamline research and document preparation, its unchecked use risks undermining credibility and could lead to costly setbacks. Firms are now being urged to implement stricter oversight and verification protocols to mitigate these risks.
Other Notable Developments
- Wildfire Litigation Heats Up: In California, lawsuits against Southern California Edison over the Eaton Fire, which destroyed over 12,000 structures and claimed 24 lives, are gaining momentum. Singleton Schreiber, a San Diego-based firm, predicts hundreds more lawsuits as insurance companies cancel policies, leaving homeowners to seek compensation for losses.
- Talc Litigation Continues: Johnson & Johnson faces ongoing scrutiny in talc-related lawsuits, with a Los Angeles trial delayed due to recent wildfires. Meanwhile, a new lead negotiation counsel has been appointed in the New Jersey multidistrict litigation, signaling continued legal battles over alleged mesothelioma risks.
- Data Breach Surge: Class actions targeting Coinbase and other companies are surging following cyberattacks in the insurance industry. These cases highlight the growing intersection of cybersecurity and class action litigation, with plaintiffs seeking accountability for exposed personal data.
Stay Informed with Critical Mass
The legal world is navigating uncharted territory as corporate giants like Meta face massive financial exposure and AI technologies introduce both opportunities and pitfalls. Subscribe to Law.com Class Actions: Critical Mass for weekly updates on these and other pivotal developments in class action and mass tort litigation. Have feedback or tips? Reach out to Amanda Bronstad at abronstad@alm.com or follow her on Twitter: @abronstadlaw.
© 2025 ALM Global, LLC. All Rights Reserved.