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META.US
id: 314, Created by Stan Vick Chase, Scout
Meta Platforms Inc.
Settled
28 January 2016
Class period Start19 March 2018
Class period End30 November 2022
Claim deadlineSEC v. FACEBOOK, INC.
Facebook has agreed to pay $100 million to settle the charges.
According to the SEC’s complaint, in 2014 and 2015, the now-defunct advertising and data analytics company, Cambridge Analytica, paid an academic researcher, through a company he controlled, to collect and transfer data from Facebook to create personality scores for approximately 30 million Americans.
In addition to the personality scores, the researcher, in violation of Facebook’s policies, also transferred to Cambridge Analytica the underlying Facebook user data, including names, genders, locations, birthdays, and “page likes.” Cambridge Analytica used this information in connection with its political advertising activities.
The complaint alleged that during this two-year period, Facebook had no specific policies or procedures in place to assess the results of their investigation for the purposes of making accurate disclosures in Facebook’s public filings.
The complaint further alleged that Facebook discovered the misuse of its users’ information in 2015, but did not correct its existing disclosure for more than two years. Instead, Facebook continued to tell investors that “our users’ data may be improperly accessed, used or disclosed.” According to the SEC, Facebook reinforced this false impression when it told news reporters who were investigating Cambridge Analytica’s use of Facebook user data that it had discovered no evidence of wrongdoing.
When the company finally did disclose the incident in March 2018, its stock price dropped.
Alleged Offence
Other
Suspected Party
Other
Security Type
Stocks
Trade Direction
Long
Lead plaintiff
SEC
Court
Northern District of California
Judge
Hon. James Donato
Administrator
RCB Fund Services
Court hearing date
22 August 2022
+$100,000,000
Total Settlement Amount