>Investors allege that Meta did not fully disclose the risks that Facebook users’ personal information would be misused by Cambridge Analytica, a firm that supported Donald Trump ’s first successful Republican presidential campaign in 2016.
The wording here is confusing. They did not disclose that ... someone else who got the info would do something bad?
From Matt Levine on his everything is securities fraud theory
An odd fact of the U.S. legal system for public companies is that every crime is also securities fraud: If a company does a bad thing, and regulators find out about it, then the bad-thing regulators can punish it for doing the bad thing, but the securities regulators can also punish it for not disclosing the bad thing to shareholders. . . . It is a strange combination: Generally speaking the companies do the bad things on behalf of shareholders—to make more money for them—but then the securities regulators come in and fine them for defrauding shareholders.”
The short version, as I understand it, is that Facebook said a leak "may" occur, but did not say a leak "would" occur, and investors interpreted that to mean would not occur. It seems really thin, but everything is securities fraud now.
The wording here is confusing. They did not disclose that ... someone else who got the info would do something bad?