Monday, April 28, 2025

Latest

Tag: Meta Platforms

Meta, Nvidia Test Limits of Investor Fraud Claims in Supreme Court

Tech giants Meta Platforms (Nasdaq: META) and Nvidia Corporation (Nasdaq: NVDA) are seeking to dismiss significant fraud lawsuits before the US Supreme Court. The outcome could fundamentally alter how shareholders hold companies accountable for alleged securities violations.

The cases arrive before the court’s conservative majority following several decisions that have already diminished the Securities and Exchange Commission’s regulatory authority. Legal experts suggest these hearings could further alter the balance between corporate interests and investor protections established by the Securities Exchange Act of 1934.

Leading the charge against Meta is Amalgamated Bank, representing investors who claim the social media giant concealed crucial information about a massive data breach. The 2018 lawsuit centers on the Cambridge Analytica scandal, where over 30 million users’ data was compromised, allegedly being utilized in Donald Trump’s 2016 presidential campaign. 

When media reports exposed the breach in 2018, Meta’s stock value plummeted, prompting investors to seek compensation for their losses. While Meta has already paid substantial penalties — $100 million to the SEC and $5 billion to the Federal Trade Commission — the company maintains it had no obligation to explicitly disclose past incidents in its risk assessments.

In a parallel case scheduled for November 13, Stockholm-based investment firm E. Ohman J:or Fonder AB challenges Nvidia over allegations that the chip manufacturer deliberately downplayed its reliance on cryptocurrency-related sales during 2017-2018. Nvidia, which previously settled with federal authorities for $5.5 million, is invoking the Private Securities Litigation Reform Act of 1995 to contest the lawsuit’s legitimacy.

“The SEC is arguably under-resourced given the broad scope of its responsibilities,” Michael Perino, a St. John’s University law professor, told Reuters. “Securities class action lawsuits effectively deputize private attorneys to bring actions on behalf of aggrieved investors.”

Meanwhile, former SEC attorney Andrew Feller notes that business interests will likely “continue their recent pattern of aggressively challenging rules intended to hold them accountable.”


Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Meta’s Nuclear-Powered AI Dreams Buzzkilled by Rare Bees

November 4, 2024, 10:22:00 AM

X-Ray Vision Is Here … And It’s More Disturbing Than You Think

October 3, 2024, 02:07:00 PM

Did Meta Just Admit to Censoring Americans?

August 27, 2024, 11:13:14 AM

Meta’s Q2 Earnings: How Zuckerberg’s AI and Cost-Cutting Strategy Paid Off

August 1, 2024, 01:02:00 PM

‘Canada Proud’ Sees Surge on Facebook Thanks to Trudeau Policy Intended to Help News Orgs

April 16, 2024, 01:22:13 PM

Advertisers Sue Meta For $7 Billion Over Alleged Inflated Reach Metrics

April 1, 2024, 12:08:00 PM

Zuck Sells Close to $200 Million More of Meta Shares This Week

March 29, 2024, 09:47:03 AM

Ontario School Boards Sue Social Media Platforms For “Rewiring” Kids, Ask For $4 Billion In Claims

March 28, 2024, 10:40:00 AM

Meta Will No Longer Pay for News Content

March 1, 2024, 07:42:21 AM

Mark Zuckerberg Sells $134 Million Worth of Meta Shares In One Day

February 9, 2024, 09:56:53 AM

Is There A Coordinated Effort on Meta’s Threads To Discredit Apple Amid Privacy Shift?

January 3, 2024, 04:17:00 PM

Meta On Threads Not Accessible For Canadian News: It’s Bug, Not Block

December 20, 2023, 01:47:00 PM
Video Articles

Bell Q3 Earnings: Massive Impairments. Guidance Cuts. A Mess.

Alamos Gold Q3: Record Revenue & Production Amid Rising Costs

The Junior Mining Market Is Back

Recommended

Germany Looks To Modernize Military Recruitment But Stops Short of Conscription

First Majestic Silver Posts Topline Revenue Of $146.1 Million In Q3 2024