Facebook has become a ubiquitous presence in American life. However, along with that popularity has come tremendous power and control over Facebook users’ personal information. A recent U.S. Securities and Exchange Commission, or SEC, whistleblower case has resulted in a $100 million penalty for Facebook after a whistleblower exposed Facebook’s decision to provide Cambridge Analytica with a treasure trove of user information, which violated Facebook’s specific policies.
Are you considering becoming a whistleblower? You will need the help of an experienced whistleblower attorney to guide you through the process and to attain your fair share of compensation. Contact Barrett Law now at (800) 707-9577 to attain the advice you need.
Background
This case stems from a data analytics company called Cambridge Analytica, which harvested Facebook profile information from approximately 30 million people in the U.S. The collected data included, genders, names, birth dates, genders, and “likes,” all of which violated Facebook’s express and internal policies. In turn, Cambridge Analytica used the data to sell to various political organizations. While Facebook realized that Cambridge Analytica was improperly using Facebook user data, it failed to adequately and clearly acknowledge to investors and users that their data had been compromised.
SEC’s Facebook Penalty Shows the Power of Cybersecurity Whistleblowers
The $100 million SEC settlement with Facebook illuminates several interesting issues. First, it shows that cybersecurity breaches will now be one of the new frontiers of whistleblower law. These cybersecurity whistleblowers have retaliation protection under the Sarbanes-Oxley Act and may be eligible forwards under the SEC’s whistleblower program as well.
Second, this settlement shows that internet companies that promise a certain level of privacy to members or subscribers will be held accountable by the SEC if they breach that promise. This falls under the “half-truth doctrine,” which is a legal doctrine that states that if a company speaks through a formal public filing or informally, such as through a media statement, the half-truth doctrine requires the corporation to include all additional information necessary to make the statement not misleading to consumers. Here, Facebook was blatantly making statements about information privacy to both members and stockholders that were not entirely true.
Third, this settlement highlights the SEC’s requirements that publicly traded companies maintain adequate internal controls. Facebook had policies in place prohibiting the transfer of user’s data to third parties, but these policies were ignored. Once Facebook discovered the breach, it failed to disclose them adequately.
What Should You Do if You are Considering Making a Cybersecurity Whistleblower Claim?
Are you aware of fraud occurring within the internet or cybersecurity industry, and are you considering filing a whistleblower case? While the reward for submitting a successful claim can be significant, you will only receive this sort of award with the help of an experienced whistleblower attorney. In this Facebook case, the whistleblowers are entitled to $15 to $30 million. However, the SEC and U.S. Department of Justice gets thousands of potential whistleblower claims each year, and only those that meet their requirements and are reported in a way that triggers their interest are acted upon. Careful pleading and an organized approach to gathering evidence are critical to this process and will require the help of an experienced whistleblower counsel. Contact Barrett Law now at (800) 707-9577.
Mississippi Whistleblower Lawyer Barrett can provide you with the advice you will need to file a successful cybersecurity whistleblower case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower reward and losing your career and livelihood. Call us today.
