Investors Sue Facebook
Investors are suing Facebook in the wake of the Cambridge Analytica scandal, which sent the company’s value plunging almost $50 billion this week.
Facebook shareholder Fan Yuan filed the lawsuit in federal court in San Francisco on Tuesday. The lawsuit was brought on behalf of an undisclosed number of investors who bought Facebook shares between February 3, 2017, and March 19, 2018.
The lawsuit said Facebook “made materially false and misleading statements” about the company’s policies, and claims Facebook did not disclose that it allowed third parties to access data on millions of people without their knowledge.
“As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s common shares, Plaintiff and other Class members have suffered significant losses and damages,” the lawsuit said.