Right before Facebook launched its ballyhooed but disappointing Initial Public Offering (IPO), the social media behemoth got whacked with a behemoth class-action suit over its privacy practices.
Via The Telegraph:
Facebook hit with $15bn privacy lawsuit ahead of stock market debut
The company is being sued for $15bn – almost as much as the $16bn raised in its record breaking initial public offering – for tracking users against their wishes, even after they have logged out of their Facebook accounts.
The lawsuit, filed [Friday] in a Federal Court in San Jose, California, combines 21 separate cases across the US and could have far-reaching ramifications for the social network at a critical time.
The hardworking staff isn’t saying this lawsuit caused Facebook’s anemic opening stock performance, but given GM’s junked Facebook ad campaign - along with critical comments from marketing executives (Telegraph: “Sir Martin Sorrell, chief executive of the world’s biggest advertising group, WPP, has said he has ‘fundamental’ doubts over whether Facebook provides the right ‘context’ for ads”) – you have to wonder if the current climate is the right “context” for an IPO.
As in, Individual Privacy Offender.
Originally posted on the Newer! Improveder! Sneak ADtack!