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Facebook CEO Mark Zuckerberg and his company won the dismissal of a lawsuit brought on by investors that claimed they were deceived about how the stock price would be compromised by a privacy breach. British company Cambridge Analytica was able to access the data of approximately 87 million Facebook users in 2015.
It should be noted that this is not the first time (see here) that San Jose, CA U.S. District Judge Edward Davila has ruled in favor of Facebook Inc. on a lawsuit concerning users’ privacy.
Davila stated that the plaintiffs did not convincingly argue that Facebook, Zuckerberg, COO Sheryl Sandberg and CFO David Wehner had misled investors, causing eventual losses. The plaintiffs will have a chance to amend their argument, but it must be filed by October 26, 2019.
“Although the Court has determined that Plaintiffs fail to state a claim, it is possible Plaintiffs can cure their allegations by alleging, among other things, more particular facts as to why statements by the Individual Defendants were false when made,” reads the court filing. “Accordingly, because Plaintiffs may salvage their Complaint, the Court finds amendment would not be futile. Plaintiffs’ claims are therefore dismissed with leave to amend.”
Facebook is currently being investigated by the Federal Trade Commission’s Technology Task Force about antitrust allegations.
Legal News
September 27, 2019FTC To Congress: Privacy & Antitrust Enforcement Against Google
