US Supreme Court tosses case involving securities fraud suit against Facebook

The U.S. Supreme Court on Friday rejected a decision on whether to allow shareholders to proceed in a securities fraud lawsuit alleging Meta’s mishandling of social media platform Facebook’s user data. The cars were accused of being misleading. 6, dismissed Facebook’s appeal of a lower court ruling that allowed a 2018 class action led by Amalgamated Bank to proceed.. The Supreme Court decided not to resolve the underlying legal dispute, ruling that the case should not have been raised. His action leaves the lower court’s decision in place. The court’s dismissal came in a one-line order that provided no explanation. The Facebook dispute was one of two cases before the Supreme Court this month involving the right of private attorneys to hold companies to account for alleged securities fraud.. On November 13, there was a discussion about artificial intelligence chip maker Nvidia. The Supreme Court has yet to rule on the Nvidia case. Plaintiffs in the Facebook case claim the company illegally withheld information about a 2015 data breach involving British political consulting firm Cambridge Analytica that affected more than 30 million Facebook users.. Federal law requiring publicly traded companies to disclose their business risks. Facebook stock fell following 2018 media reports that Cambridge Analytica had misused Facebook user data in connection with Donald Trump’s successful US presidential campaign in 2018, investors It sought unspecified monetary damages to recover the lost value of the Facebook stock it heldThe latter breached business risk disclosures, and instead presented the risk of such events as purely hypothetical. “Plaintiff’s claims are without merit and we will continue to defend ourselves as this case is brought before the district court,” Stone said. Facebook argued that it was not required to disclose that its risk exposure had already been met because “a reasonable investor would consider risk disclosures to be forward-looking statements.”. The administration of President Joe Biden supported shareholders in this matter. District Judge Edward Davila dismissed the case, but the 9th US Circuit Court of Appeals in San Francisco reinstated it, sending Facebook’s appeal to the Supreme Court. After the Supreme Court dismissed Facebook’s appeal, the court reinstated it, said Alan Morrison, a law professor at George Washington University. would be expected to discover,