US Supreme Court mulls Facebook bid to escape securities fraud suit

Source: CNA
Published on: 2024-11-06 16:58

WASHINGTON :The U.S. Supreme Court grappled on Wednesday over a bid by Meta's Facebook to scuttle a federal securities fraud lawsuit brought by shareholders who accused the social media platform of misleading them about the misuse of its user data. The justices heard arguments in Facebook's appeal of a lower court's decision allowing the 2018 class action led by Amalgamated Bank to proceed. It is one of two cases coming before them this month - the other one involving artificial intelligence chipmaker Nvidia on Nov. 13 - that could lead to rulings making it harder for private litigants to hold companies to account for alleged securities fraud. The plaintiffs accused Facebook of misleading investors in violation of the Securities Exchange Act, a 1934 federal law that requires publicly traded companies to disclose their business risks. They claimed the company unlawfully withheld informa...

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