Facebook, Inc. operates a social networking website that allows people to communicate with their family, friends, and coworkers.
According to the law firm press release, Facebook users have the ability to share and restrict information based on their own specific criteria. As of the end of 2017, Facebook had roughly 2.2 billion active users.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Facebook violated its own purported data privacy policies by allowing third parties to access the personal data of millions of Facebook users without the users’ consent; (ii) discovery of the foregoing conduct would foreseeably subject the Company to heightened regulatory scrutiny; and (iii) as a result, Facebook’s public statements were materially false and misleading at all relevant times.
On August 3, 2018, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. The consolidated cases are captioned "In re Facebook, Inc. Securities Litigation" under Docket 18-CV-01725. On October 5, the Court issued an Order consolidating cases. Lead Plaintiffs filed a consolidated Complaint on October 15.
Defendants filed a Motion to Dismiss the consolidated Complaint on December 14, 2018. On September 25, 2019, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. On November 15, Lead Plaintiff filed a second amended consolidated Complaint. Defendants filed a Motion to Dismiss the second amended consolidated Complaint on January 15, 2020. On August 7, 2020, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. Plaintiff filed a third amended consolidated Complaint on October 16.
On December 20, 2021, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with prejudice. Lead Plaintiffs filed a notice appealing the Court's Dismissal Order on January 17, 2022.
On October 18, 2023, the Court of Appeals affirmed in part and reversed in part the Court's Dismissal Order. The case was remanded for further proceedings.