Overview

• 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.