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META.US
id: 314

Facebook (META) $100 Million SEC Fair Fund

It is still possible to file a late claim. The court will decide whether to accept late claims or not.
N.D. California
Court
3:19-cv-04241
Case number
28 Jan 2016
Class period Start
19 Mar 2018
Class period End
30 Nov 2022
Claim deadline
Facebook(META) settled $100 million with shareholders via SEC arranged Fair Fund.

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 disclosed the incident in March 2018, its stock price dropped.
Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
2.29
Plaintiffs
SEC
Judge
Hon. James Donato
Administrator
RCB Fund Services
Court hearing date
22 August 2022
Trades matching type
FIFO
+$100,000,000
Total Settlement Amount

Meta Platforms Inc.

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and...

    Ticker
    META.US
    ISIN
    US30303M1027
    CIK
    1326801
    Sector
    Communication Services
    Industry
    Internet Content & Information
    Country
    USA
    Address
    1 Meta Way, Menlo Park, CA, United States, 94025