The Supreme Court announced on Monday that it will review a class action investors' lawsuit against Meta, the parent company of Facebook, related to the privacy scandal involving Cambridge Analytica. The lawsuit alleges that Meta failed to disclose the risks associated with the misuse of Facebook users' personal information by Cambridge Analytica, a firm linked to Donald Trump's 2016 presidential campaign.
Investors claim that inadequate disclosures by Meta led to significant drops in the company's stock price in 2018, following revelations about the extent of the privacy scandal. The case is set to be argued in the fall, with Meta seeking to overturn a lower court ruling that allowed the class action to proceed.
Meta has already paid a $5.1 billion fine and reached a $725 million privacy settlement with users in connection to the Cambridge Analytica scandal. The consulting firm had ties to Trump political strategist Stephen Bannon and had obtained personal data from approximately 87 million Facebook users through a third-party app developer. This data was allegedly used to target American voters during the 2016 presidential campaign.
