Judge Sides With Facebook on Cambridge Analytica Stock-Drop Claims
U.S. District Judge Edward Davila found that only one of 36 statements identified by the plaintiffs as misleading Facebook investors was actionable. Even in that case he found plaintiffs hadn't demonstrated the intent or deliberate recklessness needed to support a securities fraud claim.
September 26, 2019 at 01:38 PM
4 minute read
A federal judge in San Jose has dismissed a stock-drop lawsuit filed against Facebook Inc. and company executives in the wake of its Cambridge Analytica privacy scandal, but has given investors a chance to amend their securities fraud claims.
U.S. District Judge Edward Davila of the Northern District of California on Wednesday granted a motion to dismiss filed by Facebook's lawyers at Gibson, Dunn & Crutcher in full finding that plaintiffs by-and-large hadn't shown that Facebook's policy statements, investor communications and comments to the media were false or misleading.
"Here, it is plaintiffs' burden to point to plausible and particular facts tending to show fraudulent behavior by defendants," wrote Davila, who found that only one of the 36 statements identified by the plaintiffs as misleading was actionable.
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