Shareholders have started to use the EU General Data Protection Regulation as a launching point to pursue privacy-related securities frauds claims against publicly traded companies, such as Google and Facebook, Bloomberg Law reports. In 14 class-action lawsuits against those companies, investors allege bad publicity from data breaches and changes in the data privacy landscape caused stock prices to falter. In four of those cases, plaintiffs cited GDPR compliance costs as a reason why stocks went down. “Plaintiffs are trying to throw different arguments in front of judges to see what sticks,” Davis Polk & Wardwell Partner Avi Gesser said.
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