{"id":239,"date":"2024-12-20T02:00:21","date_gmt":"2024-12-20T02:00:21","guid":{"rendered":"https:\/\/www.soscip.org\/us\/?p=239"},"modified":"2024-12-20T02:00:22","modified_gmt":"2024-12-20T02:00:22","slug":"meta-multibillion-dollar-class-action","status":"publish","type":"post","link":"https:\/\/www.soscip.org\/us\/meta-multibillion-dollar-class-action\/","title":{"rendered":"Meta Multibillion-Dollar Class Action: US Supreme Court Against Meta Over Cambridge Analytica Scandal"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The U.S. Supreme Court has greenlit a significant <a href=\"https:\/\/www.soscip.org\/us\/meta-multibillion-dollar-class-action\/\" data-type=\"link\" data-id=\"https:\/\/www.soscip.org\/us\/meta-multibillion-dollar-class-action\/\">multibillion-dollar class action lawsuit against Meta<\/a>, Facebook\u2019s parent company, stemming from its alleged failure to disclose privacy risks linked to the Cambridge Analytica scandal. The case, which has now gained momentum after the high court dismissed Meta\u2019s appeal, centers around investor allegations of inadequate transparency about the misuse of user data, which contributed to substantial drops in Meta\u2019s stock value in 2018.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><h2>Table of Contents<\/h2><nav><ul><li><a href=\"#allegations-and-legal-background\">Allegations and Legal Background<\/a><\/li><li><a href=\"#metas-past-settlements-and-ongoing-challenges\">Meta\u2019s Past Settlements and Ongoing Challenges<\/a><\/li><li><a href=\"#supreme-courts-decision\">Supreme Court\u2019s Decision<\/a><\/li><li><a href=\"#a-broader-trend-in-tech-accountability\">A Broader Trend in Tech Accountability<\/a><\/li><li><a href=\"#next-steps-for-meta\">Next Steps for Meta<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"allegations-and-legal-background\"><strong>Allegations and Legal Background<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Investors accuse Meta of not fully disclosing the potential misuse of personal data by Cambridge Analytica, a consulting firm with ties to Donald Trump\u2019s 2016 presidential campaign. Cambridge Analytica improperly accessed data from approximately 87 million Facebook users through a third-party app developer and utilized this information to target voters.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When news of the scandal surfaced, Meta\u2019s share price dropped significantly on two occasions, causing financial losses for investors. They argue that these losses were fueled by the company\u2019s lack of transparency about the risks of its data handling practices.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"metas-past-settlements-and-ongoing-challenges\"><strong>Meta\u2019s Past Settlements and Ongoing Challenges<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Meta has faced substantial consequences for its data privacy practices. The company has already paid:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A <strong>$5.1 billion fine<\/strong> to the Federal Trade Commission (FTC).<\/li>\n\n\n\n<li>A <strong>$725 million settlement<\/strong> to users in a separate privacy class action.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">However, the investors\u2019 lawsuit, distinct from the user-related cases, alleges that the company failed to uphold its fiduciary duty by not providing adequate risk disclosures to shareholders.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"supreme-courts-decision\"><strong>Supreme Court\u2019s Decision<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Initially, the Supreme Court agreed to hear Meta\u2019s appeal, which sought to halt the class action. However, on December 1, 2023, the justices dismissed the appeal, effectively allowing an appellate court ruling in favor of the investors to stand. This move enables the lawsuit to proceed in lower courts.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/16-million-capital-one-settlement\/\" data-type=\"post\" data-id=\"215\">$16 Million Capital One Settlement: Are You Eligible for a Payment or Credit?<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/equifax-data-breach-settlement\/\" data-type=\"post\" data-id=\"23\">Equifax Data Breach Settlement: Amount, Deadlines and Compensation<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/tiktok-lawsuit-ag-attorney-claims-harms-youth\/\" data-type=\"post\" data-id=\"234\">Tiktok Lawsuit: AG Attorney Claims Platform Harms Youth Through Deceptive Practices<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/kia-and-hyundai-theft-settlement\/\" data-type=\"post\" data-id=\"204\">Kia and Hyundai Theft Settlement: Up to $145 Million Compensation Announced for Owners<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/verizon-class-action-settlement-2024\/\" data-type=\"post\" data-id=\"188\">Verizon Class Action Settlement 2024: Payout Details, Eligibility, and Payment Timeline<\/a><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"a-broader-trend-in-tech-accountability\"><strong>A Broader Trend in Tech Accountability<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Supreme Court is also deliberating a separate class action against Nvidia, where investors allege the company misled them about its reliance on selling computer chips for cryptocurrency mining. These cases highlight a growing trend of increased scrutiny of tech companies\u2019 accountability to both users and investors.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/apple-iphone-7-and-7-plus-35-million-settlement\/\" data-type=\"post\" data-id=\"226\">Apple iPhone 7 and 7 Plus $35 Million Settlement: Are You Eligible for Compensation?<\/a><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"next-steps-for-meta\"><strong>Next Steps for Meta<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As the case moves forward, Meta faces heightened legal and financial pressures. The outcome could set a precedent for how tech companies handle investor communications and user privacy issues in the future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This legal battle underscores the continued fallout from one of the largest privacy scandals in recent history, as stakeholders push for accountability in the tech sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Supreme Court has greenlit a significant multibillion-dollar class action lawsuit against Meta, Facebook\u2019s parent company, stemming from its alleged failure to disclose privacy risks linked to the Cambridge Analytica scandal. The case, which has now gained momentum after the high court dismissed Meta\u2019s appeal, centers around investor allegations of inadequate transparency about the&nbsp;<a class=\"read-more\" href=\"https:\/\/www.soscip.org\/us\/meta-multibillion-dollar-class-action\/\">Continue reading<\/a><\/p>\n","protected":false},"author":1,"featured_media":246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/comments?post=239"}],"version-history":[{"count":9,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/239\/revisions"}],"predecessor-version":[{"id":1126,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/239\/revisions\/1126"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/media\/246"}],"wp:attachment":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/media?parent=239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/categories?post=239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/tags?post=239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}