From CNET: A Facebook investor is suing the social networking giant for allegedly misleading investors over the scandal involving Cambridge Analytica, the data analytics firm accused of misusing the personal data of millions of Facebook users.
The lawsuit, filed Tuesday in San Francisco federal court, accused Facebook of making false or misleading statements by failing to disclose it violated its own privacy policies by allowing Cambridge Analytica to access users' data without their consent. As a result, investors suffered financial loss due to the company's share price declining on the revelation, the complaint says (see below).
"As a result of defendants' wrongful acts and omissions, and the precipitous decline in the market value of the company's common shares, plaintiff and other class members have suffered significant losses and damages," the lawsuit says.
Facebook's share price has declined more than 10 percent in the first two trading days since The New York Times reported Saturday that Cambridge Analytica had harvested information from 50 million Facebook accounts without users' permission and then misused it for political ads during the 2016 US presidential election.
Facebook said Friday it has suspended Cambridge Analytica and Cambridge professor Aleksandr Kogan, who created an app called "thisisyourdigitallife," a personality quiz that was billed as "a research app used by psychologists."
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