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US court dismissed the case of Meta's allegations of fraud leveled by shareholders; Upheld the old decision
Meta: Facebook argued that providing information about risks is only for potential events and investors understand that such risks are related to future events. At the same time, President Joe Biden's administration supported the shareholders in this matter.
The US Supreme Court did not give any decision in the case of Meta's allegations of fraud leveled by shareholders on social media platform Facebook on Friday. The case is related to allegations of Facebook misleading investors about the misuse of user data on the social media platform.
The US Supreme Court heard arguments in the case on November 6 and on Friday rejected Facebook's appeal-wherein it had challenged the 2018 decision of the lower court that allowed the shareholders to continue the lawsuit. The Supreme Court refused to hear the case, maintaining the decision of the lower court.
It issued a one-line order dismissing the case in which no interpretation was given. The case is one of two major deals before the Supreme Court this month on giving private parties the right to take action against companies for alleged securities fraud. Another one, an artificial intelligence chip maker called Nvidia, and arguments in that case were heard on November 13.
