Shareholders are using the European Union’s data protection rules to help bolster privacy-related securities fraud claims against publicly traded companies.
Investors have filed 14 class actions since January 2018 against companies such as Alphabet Inc.'s Google and Facebook Inc., alleging that bad publicity around data breaches or security flaws, or changes in the data privacy landscape, caused their stock prices to drop, Bloomberg Law data show. Eleven of the lawsuits were filed after the EU’s General Data Protection Regulation (GDPR) took effect last May.
The number of securities fraud actions are on the rise amid a series of high-profile data ...
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