SEVERE WX : Dense Fog Advisory View Alerts

Investors sue Facebook following data harvesting scandal

Investors are suing Facebook in the wake of the Cambridge Analytica ...

Posted: Mar 21, 2018 9:55 AM
Updated: Mar 21, 2018 9:55 AM

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.

Related: Facebook's stock tumbles again. Data scandal wipes away nearly $50 billion

"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.

Paul Grewal, Facebook's deputy general counsel, said that the company is "committed to vigorously enforcing our policies to protect people's information."

"We will take whatever steps are required to see that this happens," he said in a statement.

Facebook faces scrutiny from lawmakers and the public after revelations that data firm Cambridge Analytica had hoovered up data on 50 million Facebook users. Politicians from both the United States and the UK are calling on Facebook and Facebook CEO Mark Zuckerberg to answer questions about the Cambridge Analytica scandal.

The social media company has taken a pounding on the stock market since news of the scandal hit. Facebook shares fell 3% Tuesday, and the company's slump has spread to the broader market -- dragging down tech and social media companies. Twitter tumbled 10% and Snap Inc. lost 3% on Tuesday.

Facebook did not respond to a request for comment.

- Nathaniel Meyersohn contributed to this report

Article Comments

Medford
Overcast
39° wxIcon
Hi: 54° Lo: 33°
Feels Like: 39°
Brookings
Clear
44° wxIcon
Hi: 55° Lo: 42°
Feels Like: 44°
Crater Lake
Overcast
28° wxIcon
Hi: 41° Lo: 26°
Feels Like: 28°
Grants Pass
Overcast
43° wxIcon
Hi: 56° Lo: 39°
Feels Like: 43°
Klamath Falls
Overcast
28° wxIcon
Hi: 43° Lo: 23°
Feels Like: 28°
Foggy Monday Morning
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Community Events

Latest Video

Image

Sunday, December 8th Evening Weather

Image

Mt. Ashland opens 6 days early

Image

Saturday, December 7 night weather

Image

Saturday, December 7 morning weather

Image

Medford native Brady Breeze shines in Oregon's Pac-12 Championship victory

Image

35th annual Klamath Falls Snowflake Festival

Image

Daily J! - Patron Saints

Image

Friday, December 6th Evening Weather

Image

High winds make driving semi-trucks dangerous

Image

Friday, December 6 afternoon weather