Supreme Court Declines Facebook Appeal in Cambridge Analytica Investor Lawsuit

The decision allows a multibillion-dollar securities fraud case against Meta to proceed in lower courts.

The U.S. Supreme Court dismissed Meta's appeal in a securities fraud lawsuit tied to the Cambridge Analytica data scandal, leaving a lower court's decision in place.
Investors accuse Facebook of misleading shareholders by failing to disclose that a 2015 data breach had already occurred, instead presenting it as a hypothetical risk in SEC filings.
The Cambridge Analytica scandal involved the misuse of data from millions of Facebook users to influence the 2016 U.S. presidential election, leading to significant stock price drops in 2018.
Meta has already faced substantial penalties over the scandal, including a $5 billion FTC fine and a $725 million privacy settlement with users.
The case will now return to district court, where investors seek damages for alleged violations of the Securities Exchange Act.