The U.S. Supreme Court has declined to intervene in a significant legal battle involving Meta Platforms Inc. (META), the parent company of Facebook, over a privacy breach linked to the Cambridge Analytica scandal. Initially, the court had agreed to review Meta’s appeal to block a multibillion-dollar class action lawsuit filed by investors. However, following detailed arguments presented in November, the Supreme Court on Friday decided that it should not have taken up the case, as reported by the Associated Press.
This decision, which came in a one-line order that provided no explanation, leaves intact a ruling from a lower appellate court that had previously permitted the lawsuit to advance. The investors’ claims center around Meta’s alleged incomplete disclosures about the risks associated with the misuse of users’ personal information by Cambridge Analytica, a political consulting firm that utilized the data during the 2016 U.S. presidential election campaign.
This legal setback for Meta could set a precedent for how companies must communicate privacy risks to their shareholders. The case continues to highlight the ongoing concerns regarding data privacy and corporate transparency, especially in the tech industry where data is a pivotal asset.
Price Action: At last check, Meta shares were down 0.70%, or $4.08, trading at $558.94, reducing their year-to-date gains to approximately 58%.
Leave a Reply