The troubles at Facebook don’t seem to be letting up. After news broke about the social media giant’s failure to protect customer data, Facebook’s market value has fallen by $60 billion in the last two days. For reference, electric automaker Tesla’s entire market value is $52 billion.
This is the worst drop in Facebook since the early days following its IPO in 2012.
According to Bloomberg, the social media company has been sued by investors seeking to gain information on why social data was used and manipulated by Cambridge Analytica, a UK-based data firm employed by the campaign to elect Donald Trump in 2016.
Lawyers for Facebook deny the claims of the lawsuit, insisting no data was obtained in an illegal manner. The data in question was acquired by means of a quiz, voluntarily taken by Facebook users during the 2016 election cycle. The lawsuit contends Cambridge Analytica harvested more data than the quiz contained.
Legal troubles for Facebook aren’t limited to the United States. Last week, the European Union Justice Commission declared their desire to question Facebook CEO Mark Zuckerberg about the potential misuse of user data.
These new concerns only add to ongoing demands that Facebook be more transparent about user privacy. As lawsuits pile up and the #DeleteFacebook campaign drags on, there’s little doubt the road for Facebook will continue to be rocky for the foreseeable future.