On July 24, 2019, the Securities and Exchange Commission (the
"SEC") announced charges against Facebook Inc.
("Facebook") for making misleading statements and risk
factor disclosures regarding the misuse of Facebook user data in
its public filings for over two years. The SEC's charges allege
that, in the wake of the Cambridge Analytica breach, Facebook's
disclosure related to the risk of misuse of user data as merely
hypothetical was misleading when Facebook knew that a third-party
developer had actually misused Facebook user data.
Without admitting or denying the SEC's allegations, Facebook
agreed to pay $100 million to settle the charges and a permanent
injunction from future violations of the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended (the
"Exchange Act").
