The U.S. Supreme Court is set to hear Facebook’s appeal in a securities fraud lawsuit initiated by shareholders who allege that the company misled them regarding user data misuse. The case revolves around Facebook’s failure to disclose a data breach involving Cambridge Analytica, which affected over 30 million users, impacting stock values following media reports in 2018. While a lower court dismissed the lawsuit, the San Francisco-based 9th U.S. Circuit Court of Appeals revived it, asserting that Facebook had misrepresented risks that had already occurred. The Supreme Court’s ruling, expected by late June, may impact future securities fraud claims against corporations, alongside a similar case involving Nvidia.
