Meta Platforms Inc META has, for now, staved off a lawsuit that alleged that the Mark Zuckerberg-led company abused its dominance to monetize users' personal data.
What Happened: Meta faces a mass action worth 3 billion pounds ($3.7 billion), brought on behalf of 45 million Facebook users in the United Kingdom, reported Reuters.
Liza Lovdahl Gormsen, the legal academic behind the case, reportedly argued the social media giant’s users were not adequately compensated for the personal data they provided to the company.
The lawyers for Gormsen asked U.K.’s Competition Appeal Tribunal to mark the case under the country’s collective proceedings regime, which is akin to the class action system in the United States, according to the report.
See Also: How To Buy Meta (Formerly Facebook) Shares
Why It Matters: The Tribunal on Monday said Gormsen’s method of ascertaining losses suffered by Facebook’s users needed “root-and-branch re-evaluation,” reported Reuters.
Judge Marcus Smith has given Gormsen’s lawyers six months to “file additional evidence setting out a new and better blueprint leading to an effective trial.”
Last year, Meta reached a $37.5 million settlement for a lawsuit dating back to 2018 that alleged the company tracked user movements through their smartphones without permission.
Price Action: On Friday, Meta Platforms shares closed 0.3% higher at $172.88 in the regular session, according to Benzinga Pro data.
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