From Investing.com: 2024-06-10 11:51:57

The U.S. Supreme Court will hear Facebook’s appeal to dismiss a private securities fraud lawsuit alleging the platform misled investors about user data misuse. The lawsuit stems from stock declines following revelations of Cambridge Analytica’s improper data use in Trump’s 2016 campaign, affecting up to 87 million users.

The shareholders amended their 2018 lawsuit to include a second stock decline after reports of data sharing without user consent. They seek unspecified damages, alleging Facebook knowingly made false statements about data privacy, violating the Securities Exchange Act of 1934. A lower court initially dismissed the lawsuit, but an appeals court reinstated it.

The Cambridge Analytica breach led to government investigations, lawsuits, and a congressional hearing. Facebook paid over $5 billion in penalties and $725 million in a separate settlement with users. The Supreme Court’s decision could impact how public companies disclose past incidents to investors.



Read more at Investing.com: US Supreme Court to hear Facebook bid to scuttle shareholder lawsuit By Reuters