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U.S. Supreme Court to Hear Meta's Appeal on Multibillion-Dollar Shareholder Lawsuit

Jun 10, 2024, 04:32 PM

The U.S. Supreme Court has agreed to hear Meta Platforms Inc.'s appeal to dismiss a multibillion-dollar shareholder lawsuit. The lawsuit accuses Meta, the parent company of Facebook, of misleading investors about the misuse of user data by political consulting firm Cambridge Analytica in 2017 and 2018. Investors allege that Meta did not fully disclose the risks associated with the potential misuse of Facebook users' personal information. The case centers around whether Facebook should have disclosed the data-harvesting issues to shareholders earlier rather than presenting them as hypothetical risks. The Ninth Circuit had partially revived the investors' claims, and Facebook determined that Cambridge Analytica obtained the private information of more than 30 million users. Meta has previously agreed to settle the Cambridge Analytica scandal case for $725 million.