Facebook Data Dump Likely to Bring Regulatory Focus, Lawsuits (1)

Facebook Inc. could face scrutiny from federal and state regulators, as well as lawsuits from consumers, after data on more than half a billion users became widely available online.

The Federal Trade Commission is likely to investigate whether the social media giant had reasonable defenses to guard against such an episode and could fine Facebook if its security is deemed insufficient, according to former FTC officials.

Whether Facebook told users about the leak could bring further attention from state attorneys general looking to hold the company accountable under their breach notification rules. Consumers could also bring class action lawsuits if ...