Meta Faces Shareholder Lawsuit Over Cambridge Analytica Scandal

Meta has definitively lost its bid to avoid a shareholder lawsuit over the Cambridge Analytica scandal, David Meyer reported for Fortune’s Data Sheet.

The controversy dates back six years when it was revealed that Cambridge Analytica, a data firm linked to Trump aide Steve Bannon, improperly accessed Facebook user data to create voter profiles. I Photo: Cambridge Analytica X

The controversy dates back six years when it was revealed that Cambridge Analytica, a data firm linked to Trump aide Steve Bannon, improperly accessed Facebook user data to create voter profiles.

While Facebook had policies prohibiting such practices, the scandal highlighted significant gaps in its data security and oversight.

Meta shareholders subsequently filed a lawsuit, claiming the company failed to disclose the risks of data misuse, which led to a significant decline in its stock value when the scandal emerged.

After a federal appeals court allowed the lawsuit to proceed, Meta petitioned the Supreme Court to intervene.

On Friday, the Court dismissed the appeal, ensuring the case will move forward. This development means Meta cannot yet close the chapter on one of its most damaging scandals.