Michael Lee, founder of Michael Lee Strategy, discusses the decline in Microsoft and Meta stocks and explains why you should invest in these two companies.
The Supreme Court on Friday rejected an appeal by Facebook owner Meta Platforms in a securities fraud case accusing the tech giant of misleading investors in a data collection scandal involving Cambridge Analytica. It dismissed a lawsuit from Facebook owner Meta Platforms.
In an unsigned, one-sentence opinion, the Supreme Court gave no reason for rejecting Facebook Inc. v. Amalgamated Bank, simply saying it was “summarily granted.” This would allow the case to continue in lower courts.
Plaintiffs in the lawsuit allege that Facebook violated securities laws and illegally withheld information from investors about a 2015 data breach involving British political consulting firm Cambridge Analytica. to Reuters.
In 2018, Facebook's stock price plummeted after media reports revealed that the company had used data improperly collected from Facebook to help Donald Trump succeed in his 2016 presidential campaign. The website added that the investors are now seeking financial damages to recover the lost stock value. they were holding.
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A sign outside Meta headquarters in Menlo Park, California, February 2024. (Photographer: David Paul Morris/Bloomberg via Getty Images/Getty Images)
The lawsuit includes a securities filing Facebook released in 2016 in which it acknowledged that improper use of data by third parties could harm the company. Shareholders allege that the filing hypothetically poses the risks, misleading them into believing that no such data breach occurred. , The Hill also reported.
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The Supreme Court dismissed the appeal in Facebook, Inc. v. Amalgamated Bank. (Kent Nishimura/Bloomberg via Getty Images/Getty Images)
“Reasonable investors would understand that risk disclosures that use probabilistic, forward-looking language, especially in a regulatory context, are based on the fact that certain triggering events have occurred in the past,” Facebook's lawyers wrote. “It should not be interpreted as implying something that never happened.” It was written in the previous tax return. “Meta's warning that there may be business harm in the event of misuse of the data does not mean that Meta has not previously experienced such misuse.”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| meta | Meta Platforms Co., Ltd. | 563.09 | -2.43 |
-0.43% |
A company spokesperson told FOX Business on Friday: “Plaintiffs' claims are without merit and the company will continue to defend this lawsuit until it is heard in district court.”
The lawsuit accuses Facebook owner Meta Platforms of misleading investors during a data collection scandal involving Cambridge Analytica. (Reuters/Dado Ruvic/Illustration/Reuters Photo)
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The spokesperson added: “We are disappointed in the Supreme Court's decision not to clarify this part of the law.”
FOX Business' Bill Mears and Shannon Bream contributed to this report.
