The U.S. Supreme Court has agreed to hear Meta's Facebook's appeal to dismiss a securities fraud lawsuit.

The lawsuit accuses Facebook of misleading investors about the misuse of user data in the Cambridge Analytica scandal.

Shareholders claim Facebook downplayed the potential harm of a larger data breach, resulting in a 20% drop in stock value.

The lawsuit seeks damages for violations of the Securities Exchange Act, alleging Facebook provided false information about data compromises.

The 9th Circuit Court of Appeals reinstated the claims, leading to the Supreme Court case in the next court session starting in October.

The Cambridge Analytica scandal resulted in government investigations and penalties, including a $5 billion fine and a $725 million settlement with users.

The court's decision, expected next year, could impact disclosure requirements on SEC forms for data breaches.

CEO Mark Zuckerberg was personally sued for lax data protection rules leading to the unauthorized access of user data by Cambridge Analytica.