> The damages should completely wipe out all existing shareholders

Do you own any stock in a S&P 500 index fund, such as VFINX / VFIAX, SWPPX, FXAIX, PREIX, etc? Congratulations, you're a shareholder.

I'm well aware that the shareholders are very diverse and detached. All the more reason to impose a reasonable damages: $1000 per person. Let the market price that into companies that hold such vast amounts of sensitive data.

And it is a tiny part of our portfolio since index funds contain massive diversity. I’d gladly have the stock go to zero.

I would be ok with that.

Neato. I'll still make a profit.

Which is precisely why the fine isn't material.

Government doesn't want to be the force that creates a monopoly of the remaining two companies.

Government also doesn't want a corporation desperate enough to put the government in front of a judge and jury.

So the result is kickback and relax. Emphasis on kickback.