May 19, 2012- On Friday, social networking site Facebook started trading on Nasdaq. It was also sued for $15 billion by its subscribers who allege the company had invaded their privacy through tracking their use of the Internet.
The Friday filing in San Jose, California federal court said that subscribers were improperly tracked by Facebook, even after they had been logged out. Twenty-one cases that made similar claims were consolidated to be amended into this one case. The new filing looks to proceed against Facebook on behalf of residents in the U.S. who were Facebook subscribers from May 2010 through September 2011.
Facebook, which was valued at approximately $104 billion with its new IPO, has come under heavy scrutiny from regulators in Europe and the United States over how private information is protected by the site. Last year, a data-protection agency in Germany, said it might fine Facebook over the facial recognition software the site uses for tagging users’ photos.
A spokesperson for Facebook said in a statement that was emailed that the court claims have no merit and the company was looking forward to contesting them in court. The complaint said that over 800 million users were entitled to close to $15 billion because of how Facebook had invaded their privacy.