The U.S. Supreme Court on Friday chose not to make a ruling on whether shareholders can move forward with a securities fraud lawsuit against Meta, formerly known as Facebook (NASDAQ:META). The lawsuit accuses the social media giant of misleading investors about how user data was being misused on its platform.
The case, brought forward by Amalgamated Bank (NASDAQ:AMAL) among other plaintiffs, was previously under review by the United States Court of Appeals for the Ninth Circuit. The Supreme Court's decision to dismiss the writ of certiorari effectively leaves the lower court's decision intact, without providing any opinion on the matter.
The lawsuit centers on allegations that Facebook's management failed to properly inform shareholders about the risks associated with third-party misuse of user data, which could have significant implications for the company's stock value. The dismissal by the Supreme Court does not resolve the underlying legal dispute but rather indicates that the high court will not be the venue for its resolution.
The order from the Supreme Court was succinct, stating, "The writ of certiorari is dismissed as improvidently granted." This means that the Supreme Court had initially agreed to hear the case but later decided that it should not have accepted it. The case now remains with the lower appellate court, which had previously handled the proceedings.
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