Meta Appeals Class Action Lawsuit Approved by Lower Court
Washington, D.C. – The U.S. Supreme Court has agreed to hear an appeal from Meta Platforms, the parent company of Facebook, regarding a multi-billion dollar class action lawsuit filed by investors. The lawsuit stems from the 2018 Cambridge Analytica privacy scandal, where user data was allegedly misused to target voters during the 2016 U.S. election.
Investors Allege Inadequate Disclosures
The lawsuit, initially approved by a lower court, argues that Meta failed to adequately disclose the risks associated with Facebook user data being misused by Cambridge Analytica. Investors claim this lack of transparency led to a significant drop in Meta’s stock price in 2018 when the full extent of the scandal became public.
Meta Seeks to Block Lawsuit
Meta is appealing the lower court’s decision, aiming to have the investor lawsuit dismissed. The case will be argued before the Supreme Court this fall.
Scandal Led to Fines and User Settlements
It’s important to note that Meta has already faced consequences for the Cambridge Analytica scandal. The company paid a $5.1 billion fine and reached a separate $725 million settlement with users whose data was compromised.
Cambridge Analytica and Data Misuse
Cambridge Analytica, a now-defunct political consulting firm with ties to former Trump strategist Stephen Bannon, obtained access to the personal information of approximately 87 million Facebook users through a third-party app developer. This data was allegedly used for voter targeting during the 2016 presidential election.
