June 11, 2024 at 08:03AM
The Supreme Court will consider a multi-billion dollar class-action investors’ lawsuit against Facebook parent Meta, stemming from the Cambridge Analytica privacy scandal. Meta’s appeal against allowing the lawsuit to proceed has been accepted. Investors claim inadequate disclosure regarding the risks of personal information misuse. The case is set to be argued in the fall.
From the provided meeting notes, the Supreme Court has agreed to consider shutting down a multibillion-dollar class action lawsuit against Facebook’s parent company, Meta, linked to the privacy scandal involving Cambridge Analytica. Investors alleged that Meta did not sufficiently disclose the risks of Facebook users’ personal information being misused by Cambridge Analytica, consequently leading to significant drops in the company’s share price in 2018. Meta has already paid a $5.1 billion fine and reached a $725 million privacy settlement with users. The case will be argued in the fall, and it is noted that Cambridge Analytica had ties to Trump political strategist Stephen Bannon and had used Facebook user data to target U.S. voters during the 2016 campaign. Additionally, Meta recently made end-to-end encryption a default on Facebook Messenger and has faced fines over data breaches in the EU.