Daily Dashboard

Suit Survives Motion To Dismiss

PRIVACY LAW—U.S.

January 2, 2012

Forbes reports that a lawsuit against Facebook has survived a motion to dismiss, despite the fact that judges have generally dimissed similar class-action cases recently. Fraley et al. v. Facebook alleges that the plaintiffs were harmed by Facebook's "Sponsored Stories," which alerts users when their friends have "liked" a product or service and includes the friends' names and photos in the notification. The plaintiffs claim Facebook is using them to generate advertising revenue without asking their permission or providing compensation. Facebook argued that the plaintiffs aren't celebrities and their opinions don't have commercial value, but Judge Lucy Koh cited Facebook executives' own statements on the importance of friends' referrals in her decision.
Full Story