Facebook (FB) and the FTC have reportedly reached a settlement over the company's privacy violations, and the terms are more than just monetary.
The social media firm will pay a penalty of $5 billion, at the high end of the $3 billion to $5 billion range that was under negotiation, Reuters reported on Tuesday. The settlement also mandates that Facebook establish a board committee to oversee privacy issues at the company, which includes "executive certifications" of proper oversight.
The settlement is set to be announced on Wednesday, according to Reuters. Facebook also reports its second-quarter earnings on Wednesday after the close of trading. The company is expected to report adjusted net income of $5.9 billion, or $1.87 a share, on sales of $16.5 billion, based on a FactSet survey of 43 analysts.
The FTC's case against Facebook stems from the Cambridge Analytica scandal, which originally came to light in March 2018. The agency had been investigating whether Facebook violated a 2012 consent decree requiring that it take steps to more carefully protects its users' data.
Facebook will not be required to admit guilt as part of the settlement, Reuters reported, but the $5 billion figure represents the largest civil penalty ever levied by the FTC.
Facebook shares ticked up slightly in after-hours trading on Tuesday and are up 49% so far this year.