The Supreme Court agreed to hear Meta’s appeal on the Cambridge Analytica data breach ruling on June 10, 2024. They have considered the possibility of shutting down the investors’ lawsuit due to the privacy breach by the aforementioned firm.
Following media disclosure that the British political consulting firm, Cambridge Analytica, had inappropriately used Facebook user data to help Donald Trump’s successful presidential campaign in 2016, the plaintiffs launched a class action lawsuit. This breach, which was revealed by whistleblower Christopher Wylie, left the privacy of more than 87 million users vulnerable.
The class action suit was filed in 2018 where the investors accused Facebook of violating the Securities and Exchange Act of 1934. The suit was filed following the stock decline brought by this data breach.
In 2019, Facebook paid a fine of $5.1 billion to settle civil penalties due to charges brought up by the Federal Trade Commission, and Securities and Exchange Commission. In 2022, they agreed to pay $725 million to settle the breach of privacy with its users.
This case was later dismissed by U.S. District Judge Edward Davila in 2021 but the 9th U.S. Circuit Court of Appeals sided with the plaintiffs and allowed the case to proceed. Now, Meta’s appeal to the Supreme Court could potentially bring this lawsuit to a close. The case is now on the Court’s docket for its next term and could significantly impact disclosure requirements for damaging information on Securities and Exchange Commission forms.
