WASHINGTON (AP) — The Supreme Court has declined to hear the appeal of Meta, the parent company of Facebook, allowing a significant class-action lawsuit filed by investors to move forward. This lawsuit stems from the privacy scandal involving Cambridge Analytica, a political consulting firm.
Investors claim that Meta failed to fully disclose the risks associated with Facebook users’ personal information being misused by Cambridge Analytica. This alleged lack of transparency resulted in two substantial drops in the company’s stock price in 2018, following public revelations about the privacy scandal.
In addition to the lawsuit, Meta has already paid a hefty $5.1 billion fine and settled a $725 million privacy case with users. The scandal involving Cambridge Analytica, a firm with connections to Trump political strategist Steve Bannon, had accessed the personal data of approximately 87 million Facebook users, which was later used to manipulate U.S. voters during the 2016 election.
This case is one of two class-action lawsuits against tech companies currently being considered by the Supreme Court. The other case involves Nvidia, with investors alleging that the company misled them regarding its reliance on selling computer chips for volatile cryptocurrency mining.
The dismissal of Meta’s appeal by the Supreme Court means that the lawsuit will proceed through the legal system, allowing investors to seek damages for what they claim was a failure to disclose vital information about the potential risks of data misuse. The decision has significant implications for tech companies and the level of transparency they provide to investors regarding data privacy and security concerns.