Supreme Court Weighs Facebook's Appeal in Cambridge Analytica Fraud Case

Justices consider whether Facebook misled investors by omitting past data misuse in risk disclosures.

The case centers on Facebook's alleged failure to disclose a 2015 data breach involving Cambridge Analytica in its risk statements to investors.
Shareholders argue that Facebook's omission misled them, as the company described data misuse risks as hypothetical despite knowing they had occurred.
Facebook contends that risk disclosures are inherently forward-looking and do not imply that past events did not happen.
Some justices suggested that the issue of disclosure requirements might be better addressed by the Securities and Exchange Commission rather than the courts.
The Supreme Court's decision, expected by June, could impact how companies disclose risks and handle securities fraud allegations.