Emails have been discovered, that show Mark Zuckerberg was aware of "potentially problematic" privacy practices at the company. These emails were discovered while in the process of responding to a federal privacy investigation.
According to The Wall Street Journal, Facebook said that these emails would be harmful if they became public. Hence, why the WSJ did not publish the emails in question.
The discovery of these emails was why Facebook quickly reached a settlement with the FTC over its investigation. As Facebook was worried that it would result in a bigger impact on the investigation.
The US Federal Trade Commission has been investigating Facebook, to see whether it has violated its 2012 consent decree with the FTC. This consent decree was related to privacy issues that the FTC had investigated the social network for in 2012.
Emails sent around that time – when the FTC was investigating Facebook – suggest that many senior executives at Facebook, did not put the FTC compliance at the top of its priorities.
A Facebook representative, who was responding to the report out of the WSJ stated that "We have fully cooperated with the FTC's investigation to date and provided tens of thousands of documents, emails and files. We are continuing to work with them and hope to bring this matter to an appropriate resolution. Facebook and its executives, including Mark, at all times strive to comply with all applicable law, and at no point did Mark or any other Facebook employee knowingly violate the company's obligations under the FTC consent order."
After this news came out, Facebook's stock only dropped about two-percent. Which shows that this news doesn't mean much to investors, but it means a lot more to Facebook's users.
However, this is going to add more fuel to the fire that Facebook's shareholders are looking to oust Mark Zuckerberg. Shareholders believe that Zuckerberg has too much power at the company, and is leading the company down the wrong path. Zuckerberg has more power than any of the other shareholders at Facebook, meaning that he can override any decisions that shareholders make. It sort of makes sense, since Zuckerberg did create Facebook, but given his recent decisions, it's not a good thing for Facebook.
Recently, Facebook has been under a lot of scrutiny for its privacy practices. Going back to the 2016 Presidential Election, where Russia trolls used Facebook (and other social networks) to help influence voters, in favor of Trump. Since then, plenty of news stories have dropped about Facebook, and how it essentially doesn't care about its users privacy. This includes the whole Cambridge Analytica scandal, where it was able to get basically everyone's information off of Facebook, to help the Trump Campaign find out who it needs to target with its ads.
There have also been a ton of loopholes found at Facebook, where data was leaking and hackers were able to collect that data. So seeing these emails that Zuckerberg just didn't care to abide by the consent decree it signed with the FTC, is very worrying.