Associated Press
WASHINGTON (AP) — The Supreme Court allows a multibillion-dollar investor class motion lawsuit to be filed against Facebook's parent company Metaresulting from the information protection scandal surrounding the Cambridge Analytica political consulting firm.
The justices heard arguments in November on Meta's try to dismiss the lawsuit. On Friday, they decided it was flawed to even take up the case.
The Supreme Court dismissed the corporate's appeal and left in place an appeal ruling that allowed the case to proceed.
Investors claim Meta didn’t fully disclose the risks involved Facebook users' personal data can be misused from Cambridge Analytica, a supporting company Donald Trump The first successful Republican presidential campaign in 2016.
Poor disclosures led to 2 significant drops in the corporate's stock price in 2018 after the general public learned of the extent of the privacy scandal, investors say.
Meta spokesman Andy Stone said the corporate was disillusioned by the court's decision. “Plaintiff’s claims are without merit and we will continue to defend ourselves as this case is considered by the district court,” Stone said in an emailed statement.
Meta has already paid a $5.1 billion effective and reached a $725 million privacy agreement with users.
Cambridge Analytica had ties to political strategist Trump Steve Bannon. It had paid a Facebook app developer to access the non-public data of around 87 million Facebook users. This data was then used to focus on US voters within the 2016 election campaign.
The lawsuit is one in all two Supreme Court cases involving class motion lawsuits against technology corporations. The judges are also wrestling with the query of whether the category motion lawsuit ought to be dismissed Nvidia. Investors say the corporate misled them about its reliance on selling computer chips to mine volatile cryptocurrencies.
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