The Supreme Court agreed Monday to hear an appeal from Facebook that is tied to how the social media platform disclosed the Cambridge Analytica data breach to investors.
Long after the breach became known to leadership, the suit alleges, Facebook continued to mention the possible harm from a major data breach in hypothetical terms. The court’s decision in the case, expected next year, could determine how much disclosure of damaging information on Securities and Exchange Commission forms is enough.
In 2019, Facebook agreed to pay $5.1 billion in civil penalties to settle charges by the Federal Trade Commission and SEC over the scandal.
The legal fight began following an international outcry from the company’s disclosure that the private information of millions of Facebook users was obtained by Cambridge Analytica, a data analytics firm that worked with Donald Trump’s 2016 presidential campaign.
The 9th US Circuit Court of Appeals sided with the investors, allowing their lawsuit to proceed.
