Facebook Moves to Dismiss Derivative Action Arising Out of Cambridge Analytica Scandal

On September 28, 2018, Facebook and its board of directors moved to dismiss a derivative action filed by Karen Sbriglio, a Facebook investor, alleging breach of a fiduciary duty.  The lawsuit, filed after revelations of the Cambridge Analytica scandal, claims the failure of Facebook’s leadership and governance in permitting the misappropriation of Facebook users’ data subjected it to public scrutiny, billions of dollars of lost market value, and significant fines and costs.  The basis of Facebook’s motion was that the company’s board, rather than… Continue Reading

GDPR: The Countdown to Compliance

Many companies, large and small, are scrambling with last-minute preparations for compliance with the European Union’s General Data Protection Regulation (GDPR), which goes into effect May 25, 2018. This is because If they don’t comply, they face fines of up to 4 percent of a company’s worldwide revenue for serious infractions or $20 million euros – whichever is higher. A recent IAPP survey of U.S. and European companies carried out by the Pokémon Institute has revealed that only 52 percent of companies expect to achieve Continue Reading

Facebook Faces a Bombardment of Lawsuits Over Handling of Personal Information

Facebook is facing yet another class action lawsuit in the wake of the well-publicized Cambridge Analytica scandal. The lawsuit, filed in the Northern District of California near the company’s Menlo Park headquarters, follows close on the heels of Facebook’s admission that the personal information of a large number of its users was collected via a personality quiz app named “This is Your Digital Life” and shared with Cambridge Analytica. The app harvested the personal information of not only those who used it, but also millions… Continue Reading