Facebook Is Selling Your Private Messages, Lawsuit Alleges
Portfolio Pulse from Neil Dennis
Meta Platforms Inc (META) and Netflix Inc (NFLX) are alleged in a lawsuit to have shared users' private messages as part of a data sharing agreement. The lawsuit claims this relationship, starting in 2011, was driven by advertising revenues, with Netflix spending around $40 million annually on Facebook ads. Meta responded to these allegations in 2018, denying the misuse of private messages. This lawsuit adds to Meta's legal challenges, including a potential class action over ad reach metrics inflation.
April 02, 2024 | 5:41 pm
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NEGATIVE IMPACT
Meta Platforms Inc faces allegations of sharing users' private messages with Netflix, adding to its legal challenges including a potential class action lawsuit over ad metrics inflation.
The lawsuit alleging data sharing with Netflix and the potential class action over ad metrics inflation could negatively impact Meta's stock price in the short term due to potential legal fees, fines, and damage to reputation.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Netflix Inc is implicated in a lawsuit alleging it accessed Facebook users' private messages through a data sharing agreement with Meta Platforms, aimed at tailoring streaming content.
Netflix's involvement in the lawsuit for accessing users' private messages could lead to negative short-term stock price impact due to potential legal repercussions and public relations damage.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70