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Facebook faces lawsuit over data leak scandal

A DC attorney general has announced that he will file a lawsuit against Facebook over the Cambridge Analytica scandal.

Attorney General Karl Racine said the social media giant had “failed to protect the privacy of its users and deceived them,” after the data of tens of millions of its users were leaked to third-parties.

The suit alleges the company violated the Consumer Protection Procedures Act through its lax privacy standards, and that it misrepresented third-party developers’ ability to obtain data. The office intends to seek civil penalties if proven in court.

After the scandal emerged in March, Facebook CEO Mark Zuckerberg testified before Congress and answered questions from the Senate commerce and judiciary committees on privacy, data mining, regulations and Cambridge Analytica. The political consultancy had gathered names, “likes” and other data from more than 87 million Facebook users without their permission or knowledge.

Facebook was fined £500,000 by the UK's data protection watchdog for its role in the scandal.

“Facebook failed to protect the privacy of its users and deceived them” about who had access to their data and how it was used,” Attorney General Karl Racine said in a statement. “Facebook put users at risk of manipulation by allowing companies like Cambridge Analytica and other third-party applications to collect personal data without users’ permission. Today’s lawsuit is about making Facebook live up to its promise to protect its users’ privacy.”

The lawsuit is the latest blow for the social media giant in recent weeks. A report in the New York Times revealed that Facebook had allowed ‘partner’ companies such as Netflix, Spotify and the Royal Bank of Canada the ability to read, write and delete users’ private messages.

On the stock exchange, Facebook had fallen by 7.3%, with Loup Venture founder Gene Munster advising against the buying of its stocks, quoting that the social media behemoth’s ‘best days are behind it’.