RI treasurer sues Facebook, alleging investment losses from data breach
The Employees’ Retirement System of Rhode Island is suing Facebook and its co-founder, Mark Zuckerberg, alleging that the social media giant and its leaders breached their financial duties in connection with the collection of private data of millions of users.
Facebook user data was obtained by British consulting firm Cambridge Analytica in the years leading up to the 2016 election without users’ consent and was used to push for Donald Trump’s election as president as well as Ted Cruz’s run for Senate, and the pro-Brexit movement.
Facebook agreed to pay a $5 billion fine to the Federal Trade Commission for the breach, a significant fine that Retirement System alleges “materially” impacted the value of Facebook stock and harmed Facebook shareholders, including the state retirement system. The system currently holds 151,533 shares of Facebook.