Meta Faces Multibillion-Dollar Lawsuit Over Cambridge Analytica Scandal

A class-action lawsuit against Meta, the parent company of Facebook, is allowed to proceed. The lawsuit involves the Cambridge Analytica privacy scandal, where investors claim Meta did not disclose privacy risks, leading to significant stock price drops. Meta has previously paid settlements and fines.

The United States Supreme Court has given the green light for a multibillion-dollar class-action lawsuit against Facebook's parent company, Meta, linked to the infamous Cambridge Analytica privacy scandal, signalling a significant development in corporate accountability.

The lawsuit accuses Meta of failing to adequately inform investors about the risks of misuse of Facebook users' personal data by Cambridge Analytica, which played a role in Donald Trump's 2016 presidential campaign. Following public revelations about the scandal in 2018, Meta's stock experienced notable declines.

Meta, which has already settled with users for $725 million and paid a $5.1 billion fine, faced an unsuccessful attempt to dismiss the lawsuit at the Supreme Court level. This case is one amongst other high-profile class actions tackling tech firms and their handling of sensitive data.

(With inputs from agencies.)