U.S. Supreme Court: Allows investors to file a class action lawsuit against Meta over Cambridge Analytica privacy scandal
The U.S. Supreme Court ruled that investors are allowed to file a class-action lawsuit against Meta over the Cambridge Analytica privacy scandal, with Meta's stock price closing down 0.7% at $559.14. The lawsuit alleges that Meta failed to adequately disclose the risks of user information being misused. Meta expressed disappointment and stated that it will continue to defend the company
According to the Zhitong Finance APP, the U.S. Supreme Court recently ruled that investors are allowed to file a multi-billion dollar class action lawsuit against Facebook's parent company Meta (META.US) over the Cambridge Analytica privacy scandal. This decision is a rejection of Meta's attempt to dismiss the lawsuit.
In November of last year, the Supreme Court held a debate regarding Meta's attempt to dismiss the case. However, this week, the court rejected Meta's appeal and upheld the ruling allowing the lawsuit to proceed. The core of the lawsuit is the investors' accusation that Meta failed to adequately disclose the risks that Facebook users' personal information could be misused by Cambridge Analytica.
Regarding the Supreme Court's ruling, Meta spokesperson Andy Stone expressed disappointment. In an email statement, he said, "The plaintiffs' allegations are baseless. During the proceedings in the lower court, we will continue to defend the company."
It is worth mentioning that Meta has previously paid a $5.1 billion fine for privacy issues and reached a $725 million privacy settlement with users.
Affected by this news, Meta's stock price fell nearly 1% during intraday trading on Friday. By the close, the stock was down 0.7%, at $559.14