Investors have initiated a lawsuit against Meta, claiming it failed to fully disclose risks associated with the misuse of Facebook users' personal data by Cambridge Analytica. Shareholders allege that Facebook breached a 2012 consent order by the FTC by both selling user data and removing necessary privacy disclosures. The consequences led to Meta agreeing to a $5.1 billion penalty, further fines in Europe, and a $725 million settlement with users. Shareholders are now seeking reimbursement for these costs, estimated to exceed $8 billion.
Facebook's failure to adequately disclose the misuse of user data alleged in the lawsuit highlights major violations of the 2012 consent order with the FTC.
The lawsuit indicates that shareholders estimated legal costs and penalties exceeding $8 billion, emphasizing the gravity of ongoing privacy violations and their financial repercussions.
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