Facebook Shares Take a Tumble After Investigation Expands
WASHINGTON – June 4, 2018
Facebook Inc. shares fell more than 4% on Tuesday, after a report indicated that a federal investigation on the leak of user data to the British political consultancy firm Cambridge Analytica had been expanded to include more agencies of the American government.
Facebook has faced withering scrutiny since it was revealed that the data analysis firm that helped President Donald Trump win the U.S. election, obtained private information on tens of millions of the social network's users without their consent.
Facebook blamed the data leak on a rogue professor, who it claimed designed a personality analysis app for academic purposes and then, without the company’s permission, passed on the data of 50 millions users to Cambridge Analytica.
The Federal Bureau of Investigation (FBI), the Securities Commission (SEC) and the Federal Trade Commission (FTC) have joined the Department of Justice in their investigation of both companies regarding the exchange of personal information of 71 million of Americans, the Washington Post reported, citing five sources.
A Facebook spokesman said on Monday that they were cooperating with authorities in the United States, the United Kingdom and other parts of the world.
Facebook shares fell 3.8% to US $ 193.54 (at 14:48 GMT), after falling slightly more than 4% shortly after the opening of the New York Stock Exchange.
The company's shares lost almost 18% of their value in the week after the scandal broke in March, but since then they have gained around 30%.