U.S. Supreme Court: Allows Investors to Sue Meta (META.US) Over Cambridge Analytica Privacy Scandal in Class Action
1min read The U.S. Supreme Court recently ruled that investors can pursue a multibillion-dollar class-action lawsuit against Meta Platforms (META.US) over the Cambridge Analytica privacy scandal, a decision that rejected Meta's attempts to dismiss the case.
The high court held a debate on Meta's attempts to dismiss the case in November last year. However, this week, the court rejected Meta's appeal and upheld the decision to allow the lawsuit to proceed. The lawsuit centers on investors' allegations that Meta failed to adequately disclose the risks that Facebook users' personal information could be misused by Cambridge Analytica.
Meta spokesman Andy Stone expressed disappointment over the Supreme Court's ruling, saying in an email statement: "The plaintiffs' allegations are without merit. We will continue to defend the company in the district court proceedings."
It's worth noting that Meta has already paid a $5.1 billion fine and reached a $725 million privacy settlement with users over privacy issues.
Shares of Meta fell nearly 1% during Friday's trading session after the news. The stock closed down 0.7% at $559.14.