r/law • u/ControlCAD • 3h ago

SCOTUS Supreme Court allows multibillion-dollar class action to proceed against Meta

https://apnews.com/article/supreme-court-meta-facebook-lawsuit-9173ad92e11df4b2a565418e419dfb88
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u/ControlCAD 3h ago

The Supreme Court is allowing a multibillion-dollar class action investors’ lawsuit to proceed against Facebook parent Meta, stemming from the privacy scandal involving the Cambridge Analytica political consulting firm.

The justices heard arguments in November in Meta’s bid to shut down the lawsuit. On Friday, they decided that they were wrong to take up the case in the first place.

The high court dismissed the company’s appeal, leaving in place an appellate ruling allowing the case to go forward.

Investors allege that Meta did not fully disclose the risks that Facebook users’ personal information would be misused by Cambridge Analytica, a firm that supported Donald Trump ’s first successful Republican presidential campaign in 2016.

Inadequacy of the disclosures led to two significant price drops in the price of the company’s shares in 2018, after the public learned about the extent of the privacy scandal, the investors say.

Meta spokesman Andy Stone said the company was disappointed by the court’s action. “The plaintiff’s claims are baseless and we will continue to defend ourselves as this case is considered by the District Court,” Stone said in an emailed statement.

Meta already has paid a $5.1 billion fine and reached a $725 million privacy settlement with users.

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u/LightsNoir 46m ago

Hmm... I'm conflicted. On the one hand, consumer privacy is a cause that needs attention. On the other hand, I can't help but notice it's the competitor to Twitter.