Investors sue Facebook for providing false information following data harvesting scandal

In the cause of the Cambridge Analytica scandal which sent the company’s value plunging almost $50 billion this week, Facebook has been sued by investors for providing false and misleading statements.

According to CNN, shareholder Fan Yuan filed a lawsuit in federal court in San Francisco on Tuesday. The lawsuit was said to be brought on behalf of an undisclosed number of investors who bought Facebook shares between 3rd February 2017 and 19 March 2018.

Facebook Spread Fake News, Hired ...
Facebook Spread Fake News, Hired ‘Trackers’ to Smear Critics

The lawsuit alleges that the tech giant “made materially false and misleading statements” about the company’s policies, and claims Facebook did not disclose that it allowed third parties to access data on millions of people without their knowledge.

The social media company has taken a pounding on the stock market since news of the scandal hit. Facebook shares fell 3% Tuesday, and the company’s slump has spread to the broader market — dragging down tech and social media companies.

Also, Facebook wasn’t the only social company losing money on the stock market. Twitter tumbled 10% and Snap Inc.(SNAP) lost 3% on Tuesday, according to CNN Money.

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