Facecrook! Privacy Lawsuit an Initial Public Offing?by John Carroll onMay 20, 2012 • 5:30 am 1 Comment
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 Sneak ADtackniks aren’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.
John Carroll, who also writes at Campaign Outsider and It's Good to Live in a Two-Daily Town, is a media analyst and mass communication professor at Boston University.
John Carroll has 274 post(s) on Sneak Adtack