The U.S. Supreme Court has agreed to hear Meta’s (META.O) appeal to dismiss a securities fraud lawsuit accusing Facebook of misleading investors about the misuse of user data in 2017 and 2018.
The lawsuit, initiated by Amalgamated Bank (AMAL.O), claims Facebook misrepresented risks, leading to stock declines after the Cambridge Analytica scandal and subsequent revelations of data-sharing without user consent.
Originally dismissed in 2021, the 9th U.S. Circuit Court of Appeals revived the case, highlighting Facebook’s failure to disclose known risks. Facebook argues this ruling unfairly burdens companies to report past incidents with no current threat.
The Supreme Court’s decision on this case, set for its October term, could have significant implications for corporate disclosure requirements.
