Supreme Court allows shareholder lawsuit against Facebook to go forward

The Supreme Court dismissed an appeal by Meta’s Facebook, allowing to go forward a lawsuit brought by investors who claim they were misled by the social media giant about risks from a massive data breach. The justices wrote in a unanimous, one-line opinion that the case was “improvidently granted,” meaning the court should not have taken it in the first place. The justices did not explain the reasoning for their ruling. The Securities and Exchange Commission mandates businesses disclose information about investment risks, and separate regulations prohibit companies from making misleading or false statements related to the purchase or sale of a stock. The shareholders claim Facebook misled them and did not reveal crucial information about a known risk that could expose the data of Facebook users. Facebook denies the claims.