News & Information for Technology Purchasers NewsFactor Sites:     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Get Powerful App Acceleration with Cisco. In a world where time is money, you need to accelerate the speed at which data moves through your data center. Cisco UCS Invicta delivers powerful, easy-to-manage application acceleration for data-intensive workloads. So you can make decisions faster and outpace the competition. Learn More.
Big Data
Next Generation Data Center Is Here!
Average Rating:
Rate this article:  
Facebook Hit with $15 Billion Privacy Class Action Suit
Facebook Hit with $15 Billion Privacy Class Action Suit

By Jennifer LeClaire
May 18, 2012 11:45AM

    Bookmark and Share
"Privacy issues will continue to be a challenge for Facebook as it pushes to generate more revenue in a post-IPO environment," said analyst and former attorney Greg Sterling. Facebook's model is based on making as much information as possible about Facebook users visible and available to advertisers, Sterling said.

Facebook is now a publicly traded company -- and it's also under legal fire. Beyond Yahoo's patent litigation against the social media giant, Facebook is the subject of a class action suit over privacy concerns.

Facebook users on Friday filed an amended consolidated class action complaint in federal court in San Jose, Calif. The privacy suit involves alleged Facebook Internet tracking violations and seeks a minimum of $15 billion in damages.

"This is not just a damages action, but a groundbreaking digital-privacy rights case that could have wide and significant legal and business implications," said David Straite, a Stewarts Law partner. Stewarts Law, a London firm that set up U.S. offices in April, is representing the class action.

Tapping the Wiretap Act

The lawsuit argues federal statutory and California state causes of action related to the revelation in September 2011 that Facebook was improperly tracking the Internet use of its members even after they logged out of their accounts. The class action consolidates 21 related cases filed in more than a dozen states in 2011 and early 2012.

The plaintiffs' argument is based on the federal Wiretap Act, which provides statutory damages per user of $100 per day per violation, up to a maximum per user of $10,000. Even if Facebook's alleged actions constitute a single violation of the Wiretap Act per class member, that implies more than $15 billion in damages across the class. The complaint also asserts claims under the Computer Fraud and Abuse Act, the Stored Communications Act, various California statutes and California common law.

The amended suit comes on the day Facebook went public. Facebook hit its financial targets, raising $16 billion in its IPO. The stock climbed $4 a share to about $42 a share, a 10 percent boost, in the first few minutes of trading on Wall Street Friday morning. Facebook CEO Mark Zuckerberg rang the Nasdaq opening bell from Facebook's Menlo Park, Calif. corporate headquarters.

Facebook's Public-Private Future

We asked Greg Sterling, principal analyst at Sterling Market Intelligence and a former practicing attorney, what he makes of the Facebook privacy class action suit. He told us he can't comment on the merits or outlook for this particular case, but he did offer insight on the future of Facebook and privacy.

"Privacy issues will continue to be a challenge for Facebook as it pushes to generate more revenue in a post-IPO environment. Its model is based on making as much information as possible about people visible and available to advertisers," Sterling said.

"In general, people don't want to be tracked and targeted by ad networks and marketers online. They will, in situations of a clear value exchange, give up personal information, but don't want to do it as a matter of routine."

Tell Us What You Think



Posted: 2012-05-20 @ 6:25am PT
Another instance of Big Bro. What's gonna happen when everyone is made to get a computer chip implanted into them? They will literally be tracked wherever they go. Not much unlike the chips they put in pets to locate them when they get lost. is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.

 Big Data
1.   SAP Taps Apigee for API Management
2.   Many Sites Are Studying Consumers
3.   Cloud Wars: AWS vs. Microsoft, IBM
4.   Watson's First Consumer-Facing Gig
5.   HP Drops $50M on Hortonworks

Many Sites Are Studying Consumers
Facebook and OKCupid are not alone.
Average Rating:
Comcast Customer Service Fiasco
Lessons to be learned for all companies.
Average Rating:
Apple, IBM Team on Mobile Biz Apps
A match made in technology heaven.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.