Skip to content
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
Insurance Journal - Property Casualty Industry News

Featured Stories

  • Trade and War Worries Haunt Davos: WEF Survey
  • Railroads, Regulators Thwart Safety Fixes
  • Articles
  • Jobs
  • Markets

Current Magazine

current magazine
  • Read Online
  • Subscribe
  • Login
  • Front Page
    • National
    • International
    • Most Popular
    • Magazine
    • Forums
    • Blogs
    • Videos/Podcasts
    • Newsletters
  • News
    • Most Popular
    • National
    • International
    • East
    • Midwest
    • South Central
    • Southeast
    • West
  • Magazines
  • Research
  • Directories
  • Jobs
  • Features
    • Events
    • Forums
    • Market Directories
    • Quotes
    • Polls
    • Rankings & Awards
    • Insurance Giving Back
  • Subscribe

Judge: Facebook ‘Could Not Be More Wrong’ in Cambridge Analytica Defense

By Joel Rosenblatt | September 11, 2019
Email This Subscribe to Newsletter
  • Article
  • 4 Comments

Facebook Inc. users suing over the social network’s worst-ever privacy scandal gained leverage to pry into its internal records to back up their claims that it failed to safeguard their personal data, exposing the company to potentially billions of dollars in damages.

A federal judge in San Francisco rejected Facebook’s request to throw out a lawsuit claiming the company deceived users into allowing their data to be harvested. The information was sold to a U.K. political consulting firm that mined it to help Donald Trump win the 2016 U.S. presidential election.

According to Facebook, “if people use social media to communicate sensitive information with a limited number of friends, they have no right to complain of a privacy violation if the social media company turns around and shares that information with a virtually unlimited audience,” U.S. District Judge Vince Chhabria wrote in Monday’s ruling. “Facebook’s argument could not be more wrong.”

“When you share sensitive information with a limited audience, especially when you’ve made clear that you intend your audience to be limited, you retain privacy rights and can sue someone for violating them,” Chhabria wrote.

In allowing the suit over Cambridge Analytica to move forward, Chhabria opened the door for the users to get a glimpse of Facebook’s internal operations in their quest for make the company pay damages and rewrite policies for handling personal information.

District of Columbia Attorney General Karl Racine, who filed a similar suit against Facebook, won permission May 31 to proceed with his case. The company agreed in July to pay $5 billion to resolve a U.S. Federal Trade Commission investigation of privacy violations stemming from the scandal.

Facebook has faced a storm of controversy since the revelation early last year that Trump’s campaign benefited from the work of an app developer who started out by collecting personal information from 300,000 users, and later, from those users’ friends. Unbeknownst to users, the developer shared the data trove with Cambridge Analytica, which used it to target voters in 2016 with hyper-specific appeals through “psychographic” modeling.

While Cambridge Analytica’s research drew on as many as 87 million Facebook users, the ensuing lawsuits were filed on behalf of everyone in the U.S. who uses the social network.

Business Partners

The lawsuit targets Facebook’s relationships with “business partners,” a broad category that includes device manufacturers such as Samsung Electronics Co., website Yahoo!, as well as Amazon.com Inc., Microsoft Corp. and Sony Corp.

Facebook allegedly gave those partners access to its users’ information and that of their friends. Those companies in turn shared data with Facebook. Chhabria ruled users have adequately alleged they didn’t consent to such sharing.

Facebook contends it disclosed its practices in user agreements. It has also argued that anyone sharing their information on a social network shouldn’t count on holding onto their privacy.

“You have to closely guard something in order to have a reasonable expectation of privacy,” the company’s lawyer, Orin Snyder, told Chhabria at a May 29 hearing. “There is no expectation of privacy when you go on a social media platform,” the purpose of which is to share things with big groups of people, he said.

“You can’t cry foul, that there’s gambling going on in this establishment, when you’ve been warned,” Snyder told the judge.

The Cambridge Analytica scandal demonstrated in a “dramatic way” that Facebook doesn’t have control in cases where an app developer breaks a data-sharing agreement with the company, the attorney said.

Lesley Weaver and Derek Loeser, lawyers representing the users, said in an emailed statement that they “look forward to the discovery process that will prove our clients’ claims.”

Facebook didn’t immediately respond to an email request for comment.

The case is In Re Facebook Consumer Privacy User Profile Litigation, 18-MD-02843, U.S. District Court, Northern District of California (San Francisco).

Copyright 2026 Bloomberg.

Topics Lawsuits USA Legislation

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Billionaire NFL Owner Suing Over Billboards Near His LA Stadium
SIAA Announces Strategic Partnership With Progressive
Experian: AI Agents Could Overtake Human Error as Major Cause of Data Breaches
Supreme Court Rejects Challenge to $2.46B Boy Scouts Sex Abuse Settlement

Written By Joel Rosenblatt

More From Author

Interested in Lawsuits?

Get automatic alerts for this topic.

Email This Subscribe to Newsletter
  • Categories: National NewsTopics: Facebook Cambridge Analytica, Facebook Consumer Privacy User Profile Litigation, Facebook privacy, U.S. District Judge Vince Chhabria
  • Have a hot lead? Email us at newsdesk@insurancejournal.com

Featured Comment

  • September 11, 2019 at 3:11 pm
    PolarBeaRepeal says:
    Like or Dislike:
    Thumb up 9
    Thumb down 8

    Fakebook is a lot like HAL in the movie 2001: A Space Odyssey. It needs to be brought down a couple rungs; i.e. a couple $billion, to learn to behave like an unbiased social media platform. Otherwise, it should be abandoned by all who believe in the US Constitution and amendments thereto.

Latest Comments

  • September 12, 2019 at 11:42 am
    KP says:
    Our Civil Rights are slowly being erased. Open your eyes people.
  • September 11, 2019 at 10:52 pm
    Jon says:
    Lol you guys follow the company line through and through. The right hates the tech companies, because they're new money when the right is traditionally funded by old money. Ne... read more
  • September 11, 2019 at 5:28 pm
    Agent says:
    Correct Polar. These Tech giants should be brought down. Anti-American Progressive Socialists.

Add a CommentSee All Comments (4)Add a Comment Cancel reply

Your email address will not be published. Required fields are marked *

*

*

More News
Allstate-LogoAllstate Can Proceed with Recovery in Texas RICO Case: Fifth Circuit
Trump Officials Vow to Keep All US Coal Plants Running
merger and acquisition business concept, join company on puzzle pieces, 3d renderingDealmakers See More Retail Mergers, IPOs After Tariffs Sidelined M&A Last Year
Texas Proposes 13,000% Fee Hike on Hemp THC Shops
More News Features

Read This Next

  • Judge: Facebook 'Could Not Be More Wrong' in Cambridge Analytica Defense
  • Allstate Can Proceed with Recovery in Texas RICO Case: Fifth Circuit
  • Florida Lawmakers Ready for Another Shot at Litigation Funding Limits
  • Court Ruling Could Help Shed Light on Owners of Litigation Funders, Medical Clinics
  • Experian: AI Agents Could Overtake Human Error as Major Cause of Data Breaches

Insurance Jobs

  • Underwriting Manager - Philadelphia, PA
  • MD Claims Adjuster - Remote, IL
  • Direct Sales Agent Specialist (1290) - Port Richey, FL
  • Property Adjuster – Inside (Trainee) – Long island City & Uniondale, NY – Hybrid - Long Island City, NY
  • Direct Sales Agent Specialist (2909) - Albany, GA
MyNewMarkets
  • Adjusters Launch 'CarFax for Insurance Claims' to Vet Carriers' Damage Estimates
  • Every Superman Has His Kryptonite: How to Protect Key Executives with Specialized Coverage
  • Emerging Risks to Watch: Space Weather, Quantum Sensors, and Digital Addiction
  • Driving Passion, Protecting Value - What Every Agent Should Know About Collector Vehicle Insurance
  • Top Business Risks
Claims Journal
  • US Says Canada Will Regret Decision to Allow Chinese EVs into Their Market
  • Thumbs Down on SELF DRIVE Act as Written, Says Industry Trades
  • Tesla Gets 5-Week Extension in US Probe of Full Self-Driving Traffic Violations
  • Publishers Seek to Join Lawsuit Against Google Over AI Training
  • A Lean Lens on Legal Bill Review: Keeping the Insured at The Center
Academy of Insurance education
  • January 15 Space Needs Spring Cleaning: The Growing Problem of Satellite Pollution
  • January 29 Period of Restoration: One Concept You Need to Get Right
  • February 5 Ethics Frontier: Navigating AI and Claims in the Age of Complexity
  • February 12 Who's Driving This? Where Are We Going with Autonomous Vehicles?

Insurance News

  • News by Region
  • News by Topic
  • Yesterday

Site Search

Features

  • Insurance Markets Directory
  • Forums
  • A.M. Best Company Ratings
  • Industry Events
  • Agencies For Sale
  • Newswire
  • Insurance Jobs
  • Rankings & Awards

Connect with us

  • Email Newsletters
  • Magazine Subscriptions
  • For Your Website
  • RSS Feeds
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Insurance Journal

  • Submit News
  • Advertise
  • Subscribe
  • Reprints
  • Link to Us
  • Contact Us

Wells Media Group Network

  • Insurance Journal
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
© 2026 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map