Mar 19, 2018
Kyle DeYoung comments on the regulatory scrutiny Facebook is facing after claims that an analytics firm used by Donald Trump’s presidential campaign improperly received data about 50 million users of the social network.
An excerpt from "Facebook Shares Tumble as Regulatory Pressure Intensifies," Financial Times, March 19, 2018:
Kyle DeYoung, former senior counsel to the Securities and Exchange Commission director of enforcement, said the regulator was likely to look at whether Facebook had an obligation to disclose the incident earlier.
“Just because it wasn’t a true hack, doesn’t mean [the SEC is] not going to conclude it was a material event,” said Mr DeYoung, now a partner at Cadwalader, who added that it was too early to make a judgment either way.
Mr DeYoung said he would not be surprised to see investor lawsuits, given the nearly 7 per cent fall in Facebook’s share price on Monday. A Facebook spokesperson declined to comment on the possibility of shareholder lawsuits or an SEC investigation.
Matthew Feig, Robert Cannon
Steven Lofchie, Nihal Patel
Ingrid Bagby, Eric Waxman, Casey Servais