Data Privacy
Oct. 19, 2023
Investor claims against Meta over data sharing are restored
In a published opinion, the appellate panel held that the lower court erred in dismissing shareholders’ claims of falsity when Meta, then known as Facebook, represented to the U.S. Securities Exchange Commission in 2016 that third-party misuse of users’ personal data was a purely hypothetical risk that could harm the company if it materialized.
Meta Platforms Inc.'s shareholders adequately pleaded one of their securities fraud claims in the wake of the Cambridge Analytica data breach scandal, a 9th U.S. Circuit Court of Appeals panel ruled 2-1 on Wednesday.
The panel unanimously agreed that most of the claims were not sufficiently alleged. However, U.S. Circuit Judge Patrick J. Bumatay partially dissented from his colleagues and held that the shareholders did not do enough to su...
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