Facebook Faces Legal Risk Similar to Big Tobacco or OxyContin, Analyst Says

Barrons2021-10-11

Recent revelations and scrutiny from Congress over Facebook’s role in society could lead to major lawsuits against the social-media giant, according to new research that drew comparisons with ...

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BBBBBBBBBB
2021-10-11
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2021-10-11
kerukel88
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Saltyninjazz
2021-10-11
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- LimYH:
  what happen?
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2021-10-11
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href=https://www.barrons.com/articles/facebook-faces-legal-risk-big-tobacco-oxycontin-51633956119?mod=hp_LATEST><strong>Barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Recent revelations and scrutiny from Congress over Facebook’s role in society could lead to major lawsuits against the social-media giant, according to new research that drew comparisons with ...</p>\n\n<a href=\"https://www.barrons.com/articles/facebook-faces-legal-risk-big-tobacco-oxycontin-51633956119?mod=hp_LATEST\">网页链接</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"https://www.barrons.com/articles/facebook-faces-legal-risk-big-tobacco-oxycontin-51633956119?mod=hp_LATEST","article_id":"1108627633","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1108627633","pubTimestamp":1633957828,"sourceInfo":{"source_id":"lsy1601382232898","name":"Barrons"},"weMediaInfo":null,"summary":"Recent revelations and scrutiny from Congress over Facebook’s role in society could lead to major 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co-founder and CEO Mark Zuckerberg last week said that “many of the claims don’t make any sense,” pushing back against allegations that arose in the Journal’s reports and the whistleblower’s testimony, in a post on social media.\nBlair Levin, an analyst at London-based technology industry research group New Street Research, wrote Sunday that “while we have been skeptical that past revelations would lead to government action, we think this time is different and as a result, we think Facebook may now face a similar challenge from increased litigation as tobacco, or more recently, OxyContin.”\nLevin served as chief of staff to the chair of the Federal Communications Commission in the 1990s.\nThe analyst said that while the facts and damages are different for Facebook than those faced by the tobacco industry or Purdue Pharma—the maker of opioid medication OxyContin—the fundamental legal framework is the same.\nThere is a product with problematic consequences for many people, management knowledge of such, and actions by management “that not only failed to mitigate the harm but arguably increased those problematic consequences,” Levin said.\nIn the same way that public outcry against tobacco and opioid makers led to massive class action and state attorneys general-led lawsuits, Levin said the recent revelations against Facebook creates similar incentives to bring litigation against the company.\nWhile Facebook has faced scrutiny before, there is far more attention on the company this time, in part because of the role that harms to children plays in the recent allegations, Levin noted.\n“Discovery is likely to yield even more problematic evidence for Facebook, and the dynamics create an opportunity for a settlement that would address the issues more quickly than legislation,” Levin said. “We think litigation is likely to be more damaging to Facebook than legislation.”\nFacebook (ticker: FB) stock was 0.7% lower in U.S. premarket trade Monday. 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