Courthouse News reports that the Supreme Court has agreed to review a Ninth Circuit decision that revived a shareholder’s lawsuit against Facebook that stemmed from the Cambridge Analytica breach.
The Supreme Court agreed on Monday to review whether shareholders can revive a lawsuit accusing Facebook of misleading them about the risk associated with user data security issues at the social media giant.
In 2018, Facebook’s stock tanked after news reports revealed the company sold data to a political consulting firm without users’ knowledge. British data analytics contractor Cambridge Analytica wielded Facebook user data to support Donald Trump’s presidential campaign, The New York Times reported.
The scandal led to an almost 19% drop in the company’s stock price, which at the time was the largest single-day stock price drop in U.S. history. The drop amounted to $100 billion in shareholder value.
Read more at Courthouse News.
