Supreme Court Paves Way for Billion-Dollar Battle Against Meta in Cambridge Analytica Scandal
1min read The United States Supreme Court has recently ruled in favor of allowing investors to pursue a multibillion-dollar class-action lawsuit against Meta, the parent company of Facebook, in relation to the Cambridge Analytica privacy scandal. This ruling stands in opposition to Meta’s efforts to dismiss the lawsuit.
Last November, the Supreme Court engaged in deliberations over Meta's attempts to have the case quashed. However, the court has now rejected Meta's appeal, thereby upholding the decision to allow the lawsuit to proceed. At the heart of the litigation is an accusation from investors that Meta failed to adequately inform them of the risks associated with the potential misuse of Facebook user data by Cambridge Analytica.
Reacting to the Supreme Court's decision, Meta spokesperson Andy Stone expressed the company's disappointment. In an emailed statement, Stone remarked that the plaintiffs' allegations remained unfounded and reassured that Meta would continue to defend itself robustly in the lower court proceedings.
It's notable that Meta has previously incurred a $5.1 billion penalty due to privacy issues and reached a $725 million privacy settlement with Facebook users. These legal and financial challenges underscore the ongoing scrutiny Meta faces concerning its data handling practices.
This recent legal development affected Meta’s stock performance, with shares briefly sliding nearly 1% during trading on Friday. By the market's close, Meta’s stock had decreased by 0.7%, settling at $559.14.