The plaintiffs accused Facebook of misleading investors in violation of the Securities Exchange Act, claiming the company unlawfully withheld information about a 2015 data breach.
Conservative Justice Clarence Thomas pressed Kannon Shanmugam about whether the company's risk statements were misleading, highlighting potential misinterpretations by reasonable investors.
Shanmugam argued that the statement did not imply the event never happened, insisting reasonable interpretations should allow for the risk of harm to follow.
Facebook faced scrutiny after its stock fell following reports of the Cambridge Analytica scandal, which involved the use of user data in the 2016 presidential campaign.
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