Supreme Court Deals a Blow to Mark Zuckerberg’s Meta, Green Lights Multibillion-Dollar Lawsuit
The Supreme Court has decided to allow a multibillion-dollar class-action lawsuit against Meta, the parent company of Facebook, to proceed. This lawsuit relates to the privacy scandal involving Cambridge Analytica, which misused the personal information of millions of users during the 2016 U.S. presidential campaign. The court dismissed Meta’s appeal, overturning an earlier decision to hear the case. Investors claim that Meta failed to adequately disclose the risks associated with the misuse of user data, which they argue led to significant drops in the company’s stock value after the scandal became public in 2018. Meta has expressed disappointment with the court’s action and continues to assert that the claims are unfounded. The company has previously faced significant financial penalties related to privacy violations, including a $5.1 billion fine and a $725 million settlement. Additionally, the Supreme Court is also deliberating another class-action lawsuit involving Nvidia, relating to the company’s misleading information about their reliance on cryptocurrency mining.
The Supreme Court is allowing a multibillion-dollar class action investors’ lawsuit to proceed against 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 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 s 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 ed statement.
Meta already has paid a $5.1 billion fine and reached a $725 million privacy settlement with users.
Cambridge Analytica had ties to Trump political strategist Steve Bannon.
It had paid a app developer for access to the personal information of about 87 million users.
That data was then used to target U.S. voters during the 2016 campaign.
The lawsuit is one of two high court cases involving class-action lawsuits against tech companies.
The justices also are wrestling with whether to shut down a class action against Nvidia.
Investors say the company misled them about its dependence on selling computer chips for the mining of volatile cryptocurrency.
The Western Journal has reviewed this Associated Press story and may have altered it prior to publication to ensure that it meets our editorial standards.
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