Facebook is to pay a $100Mn fine to the SEC following misleading disclosures regarding the risk of misuse of user data.

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Facebook is to pay a $100Mn fine to the SEC following misleading disclosures regarding the risk of misuse of user data. Facebook failed to disclose that it was misusing its users data, resulting from its transfer of data of 30 Million US Facebook users to Cambridge Analytical. Alleging that Facebook knew of the data transfer in 2015 and did not reflect the truth of what it had done, even when investigators had discovered the transfer.

The SEC has taken action based on Facebook failing to disclose material risks to investors, ultimately misleading shareholders, resulting in a drop in share price.

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