Supreme Court rejects Meta’s appeal in Cambridge analytica securities fraud case
Supreme Court rejects Meta’s appeal in Cambridge analytica securities fraud case . (MENAFN) The U.S. Supreme Court rejected an appeal from Meta Platforms, Facebook's parent company, regarding a securities fraud lawsuit alleging the company misled investors during the Cambridge ...
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(MENAFN) The U.S. Supreme Court rejected an appeal from Meta Platforms, Facebook's parent company, regarding a securities fraud lawsuit alleging the company misled investors during the Cambridge Analytica data-harvesting scandal.



In a brief and unsigned statement, the court offered no explanation for its decision to dismiss Facebook, v. Amalgamated Bank, citing only that the case was "improvidently granted." This decision allows the lawsuit to proceed in lower courts.



The plaintiffs claim violated the Securities Exchange Act by failing to disclose critical information to investors about the 2015 data breach linked to Cambridge Analytica, a British political consulting firm, as reported by Reuters.



The lawsuit highlights that Facebook's stock dropped significantly in 2018 after reports revealed that improperly obtained user data was used to aid Donald Trump’s 2016 presidential campaign. Investors now seek damages to recover financial losses stemming from this decline.



Additionally, the case references a 2016 securities filing where Facebook acknowledged the potential risks of third-party misuse of user data. However, the company framed this as a hypothetical scenario, which plaintiffs argue misled shareholders into believing no breach had occurred, as noted by The Hill.

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https://menafn.com/1108918000/Supreme-Court-rejects-Metas-appeal-in-Cambridge-analytica-securities-fraud-case
2024-11-23
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(MENAFN) The U.S. Supreme Court rejected an appeal from Meta Platforms, Facebook's parent company, regarding a securities fraud lawsuit alleging the company misled investors during the Cambridge ...
Supreme Court rejects Meta’s appeal in Cambridge analytica securities fraud case