<p>Facebook agreed to pay USD 550 million over a privacy lawsuit as shares dropped even with the social media giant reporting stronger than forecast earnings.</p>.<p>The leading online social network said net income rose seven percent from a year ago to USD 7.3 billion, while revenue increased 25 per cent to USD 21 billion in the final three months of last year.</p>.<p>But in an earnings call Wednesday, Facebook chief financial officer David Wehner confirmed a USD 550 million settlement "in connection with the Illinois Biometric Information Privacy Act litigation".</p>.<p>The Illinois settlement -- which still requires a judge's approval -- was based on allegations that users' biometric data was illegally gathered using photo-scanning technology and then stored.</p>.<p>"We decided to pursue a settlement as it was in the best interest of our community and our shareholders to move past this matter," Facebook was quoted by Bloomberg as saying.</p>.<p>The number of people using Facebook monthly climbed eight per cent to 2.5 billion. For all its apps including Instagram, Messenger and WhatsApp, the figure was 2.89 billion.</p>.<p>Despite CEO Mark Zuckerberg reporting stronger than forecast quarterly earnings and user growth during the earnings call, shares dropped more than seven percent. "We had a good quarter and a strong end to the year as our community and business continue to grow," said Zuckerberg.</p>.<p>Investors may be concerned about the continuing increases in the amount of money Facebook spends as it pours resources into protecting privacy and preventing the network from being used as a platform for hate speech, abuse, and disinformation.</p>.<p>Costs in the recently ended fourth quarter rose 34 per cent to USD 12.2 billion. Facebook ended the year with its employee ranks up 26 percent to nearly 45,000.</p>.<p>Shares may have also been weighed down by worries about privacy regulations hobbling the company's ability to effectively target its money-making ads.</p>
<p>Facebook agreed to pay USD 550 million over a privacy lawsuit as shares dropped even with the social media giant reporting stronger than forecast earnings.</p>.<p>The leading online social network said net income rose seven percent from a year ago to USD 7.3 billion, while revenue increased 25 per cent to USD 21 billion in the final three months of last year.</p>.<p>But in an earnings call Wednesday, Facebook chief financial officer David Wehner confirmed a USD 550 million settlement "in connection with the Illinois Biometric Information Privacy Act litigation".</p>.<p>The Illinois settlement -- which still requires a judge's approval -- was based on allegations that users' biometric data was illegally gathered using photo-scanning technology and then stored.</p>.<p>"We decided to pursue a settlement as it was in the best interest of our community and our shareholders to move past this matter," Facebook was quoted by Bloomberg as saying.</p>.<p>The number of people using Facebook monthly climbed eight per cent to 2.5 billion. For all its apps including Instagram, Messenger and WhatsApp, the figure was 2.89 billion.</p>.<p>Despite CEO Mark Zuckerberg reporting stronger than forecast quarterly earnings and user growth during the earnings call, shares dropped more than seven percent. "We had a good quarter and a strong end to the year as our community and business continue to grow," said Zuckerberg.</p>.<p>Investors may be concerned about the continuing increases in the amount of money Facebook spends as it pours resources into protecting privacy and preventing the network from being used as a platform for hate speech, abuse, and disinformation.</p>.<p>Costs in the recently ended fourth quarter rose 34 per cent to USD 12.2 billion. Facebook ended the year with its employee ranks up 26 percent to nearly 45,000.</p>.<p>Shares may have also been weighed down by worries about privacy regulations hobbling the company's ability to effectively target its money-making ads.</p>