Tag Archives: GDPR

First Suit Filed re: Facebook’s Stock Plunge

First Suit Over Facebook's Stock Plunge Is Filed in Manhattan Federal Court

The first shareholder suit was filed Friday against Facebook in the Southern District of New York over the erasure of $100 billion in value just one day after the social media giant's stock plunged. The 24-page complaint was filed by Pierce Bainbridge Beck Price & Hecht in New York, on behalf of a proposed class defined as people who bought stock in the social media company from Oct. 1, 2017, through July 26, 2018. Facebook Inc. as well as its founder and CEO, Mark Zuckerberg, Chief Financial Officer David Wehner and Chief Operating Officer Sheryl Sandberg are named defendants.

The plaintiffs' lawyers allege that throughout the months leading up to Thursday, Facebook and its top executives "made materially false and misleading statements regarding Facebook’s business and operations," including its adaptation to the European Union's new GDPR data protection requirements, its platform use and revenue growth. The "decline in Facebook’s Platform use and the increase in costs as a result of complying with the GDPR had a materially adverse effect on Facebook’s financial health, including its revenue and projected growth," the complaint states, with the impact of making statements from the company "materially false and misleading."

On Thursday, after Facebook issued a statement the day before about its second-quarter 2018 results, the company's stock price plummeted from $217.50 per share, its closing price on Wednesday, to $174.97 as markets opened Thursday. By the end of the trading week, the price was $174.89. The plunge wiped out more than $100 billion in stock value. Zuckerberg's and Wehner's statements about the GDPR transition—admitting that the service lost 1 million users in Europe—"had a devastating impact on Facebook's stock price," according to the complaint.

"This is a new age," said name partner John Pierce. "We didn't start working on this until yesterday afternoon after I saw news of the stock drop on Fox News during a break in trial prep. No firm can replicate our speed and lethality." David Hecht, a partner at Pierce Bainbridge, said teams on both coasts worked through the night to develop the complaint. It was filed at roughly 4 p.m. Friday, he said. Hecht said the effort involved 3 a.m. handoffs from East Coast-based attorneys to their West Coast colleagues. "It has really been an incredible ride." In addition to "bragging rights," being first to the courthouse offered some tactical benefit, Hecht said.

"There is an advantage in filing first," Hecht said, particularly in engaging with institutional investors that may be substituted as lead plaintiff in the case. The case is captioned Helms v. Facebook. It was not assigned to a judge by late Friday afternoon. A spokeswoman for Facebook said the company was declining to comment.


From article:    ALM Media   July 27, 2018


Facebook Lost 1 Million Users

Facebook Lost One Million Monthly Active Users To GDPR.
GDPR had real consequences for Facebook, if only slightly.

The European Union's General Data Protection Regulation had a tangible impact on Facebook's user base — if only just. While discussing its second quarter earnings, the social network revealed that it lost about 1 million monthly active users in Europe due to the implementation of GDPR. That's a drop in the bucket next to Facebook's 376 million European users and 2.2 billion total users, but such a decline is extremely rare for a company that has almost always seen growth, even if it has been slowing over time.

This definitely isn't guaranteed to set a trend, and it might even be a modest dip given the lingering effects of the Cambridge Analytica scandal. Facebook could easily be nervous about its significance, though — it suggests that Europeans are considerably more sensitive to internet privacy issues, and that the company might have to walk a fine line if it wants to keep growing its audience in the region.

Article from: Jon Fingas@jonfingas 07.25.18 in Internet



Is Privacy Even Possible

… In This Golden Age of Data Breaches?

Privacy seems like a pipe dream when everyone’s data seems vulnerable.

Do we just give up on it though?

In 2018 the number of internet users, worldwide, rose to 3.6 billion. If you’re a collector of anecdotes or technology milestones, that’s more than half the world’s population to be specific. Make no mistake, that’s a lot of users, a lot of data being bandied about the ether and, if you’ve been following any of the data breaches making headlines in recent months, your next deduction must surely be that that’s a lot of potential vulnerability.

The Privacy Paradox

With so many internet users consuming online products that require increasing amounts of personal data in order to provide better, more innovative and personal experiences for these consumers (not to mention vendor monetization of personal data), we increasingly have a “privacy paradox,” as Mary Meeker, of venture capital firm Kleiner Perkins Caufield Byers, reminded us in her highly-anticipated 2018 Internet Trends Report, released in May.

The term, which has been bandied about the tech industry for some years, refers to the conundrum arising from the idea that tech companies must use more data to enrich their customers’ experiences without betraying their trust and how consumers, in turn, must give up their privacy in exchange for services like Gmail, Facebook and so on.

There is no comfort zone for consumers when it comes to online privacy. Every nugget of personal information we hand out is a source of concern, and data privacy scandals like the Facebook/Cambridge Analytica calamity, the Equifax breach and more recently the eFail debacle do little to make us feel any safer or more comfortable online.

Off the grid, ostrich approach, or another solution?

You might argue that the answer is to simply get offline completely, and undoubtedly many folks have done exactly that in the wake of the aforementioned data privacy fails. Others advocate, by example, the ostrich approach of burying your head in the sand – if you can’t see it, it can’t be real. Neither are viable options for anyone who intends to live, work and contribute to society in any meaningful way. The future is a connected one, and the challenge is to make it a secure one.

Yet, as recently as May 14, 2018, a team of Belgian and German researchers upended the world as we know it with their disclosure of vulnerabilities in the ubiquitous email encryption schemes PGP and S/MIME. Dubbed eFail, this revelation spread like wildfire across the inter-webs, sowing fear and doubt and spawning such ill-considered solutions as disabling email encryption altogether – a bit like leaving your front door open because there as so many burglaries happening, so why bother?

The timing of eFail couldn’t have been worse either, coming just 11 days before the May 25 GDPR deadline and exposing a data privacy fail that, as email security innovator Cryptshare, reveals is not a quick fix because it requires action from software vendors, standardization bodies and end-users and will therefore take months to achieve the required sum of necessary measures.

"In today’s business world, fast and reliable electronic communications are key factors for success. Messages and files regardless of size need to be exchanged with contacts around the globe with speed, security and auditability. Business users, like consumers, don't want to give up their privacy or fall victim to criminal activity when using technology tools as ubiquitous as email. They want simple, reliable security solutions that don't get in the way and that all of their staff can use" shares Mark Forrest, CEO of Cryptshare.

By , CSO from IDG Contributor Network (ICN)* …

*Opinions expressed by ICN authors are their own.