NEW YORK – Facebook Inc has on Thursday won its case bothering on privacy breach that affect its investors’ stock price.
According to Reuters, the lawsuit was a combination of a handful of complaints from a number of investors since last year and which were aimed at Facebook chief organization officer Sheryl Sandberg and chief financial officer David Wehner.
The investors were unable to prove that Facebook Inc or its senior administrators fabricated statements that caused their losses.
Lawyers for both parties were not available when contacted for their opinion on the judgement.
Recall that in December 2015 a revelation was made linking a British political consulting firm, Cambridge Analytica having access to privacy data of about 87 million Facebook users.
Stock price of Facebook dropped in March and June 2018 as a result of reports from multimedia companies who disclosed that Facebook was still giving access of the privacy of its users to third part organizations and that analysis of data by Cambridge Analytica was used U.S President Trump’s campaign group.
Judge Davila in his judgement said the plaintiff failed to specifically show direct evidences that Facebook or its senior administrators intentionally made false disclosures that impacted on their stocks.
He argued that those disclosures were just partly ambitious and partly positive reassurance and could not be taken as basis for suing the defendants.
“Possible plaintiffs can cure their allegations by alleging, among other things, more particular facts as to why statements by the individual defendants were false when made”, he added.
The investors were given until October 26 to re-file their accusation.