Meta Offers $51M To Resolve Ads Lawsuit With Canadian Facebook Users In Four Provinces
Portfolio Pulse from Benzinga Neuro
Meta Platforms Inc. (NASDAQ:META) has proposed a $51 million settlement for a class-action lawsuit in Canada, where users' images were allegedly used without consent in Facebook's 'sponsored stories' ads. The program, which ran from January 2011 to May 2014, affected an estimated 4.3 million people. The settlement requires approval from a B.C. Supreme Court judge, with a hearing scheduled for March. This follows a series of privacy-related lawsuits that Meta has settled, including a $90 million settlement in February 2022, a $37.5 million settlement in August, and a $725 million settlement for the Cambridge Analytica data privacy breach.
January 12, 2024 | 8:46 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Meta Platforms Inc. is addressing a class-action lawsuit in Canada with a proposed $51 million settlement over unauthorized use of user images in Facebook ads.
The proposed settlement is likely to have a negative short-term impact on Meta's stock price due to the financial outlay and the negative publicity associated with the lawsuit. However, the impact may be somewhat mitigated by the fact that Meta has previously settled similar lawsuits, indicating that the market may have partially priced in such legal risks.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100