Facebook fends off an up to £3bn collective lawsuit brought by legal academic, Liza Lovdahl Gormsen, in the UK

Proactive Invstors writes

Facebook has fended off an up to £3bn (US$3.7bn) collective lawsuit brought over allegations the social media giant abused its dominant position to monetise users’ personal data, Reuters reported.

However, Meta Platforms Inc (NASDAQ:FB), the parent company of the Facebook group, still faces a mass action brought on behalf of around 45mln Facebook users in Britain.

A London tribunal on Monday gave the proposed claimants’ lawyers up to six months to “have another go” at establishing any alleged losses by users.

Legal academic Liza Lovdahl Gormsen, who is bringing the case, has said Facebook users were not properly compensated for the value of personal data they had to provide to use the platform.

Reuters noted that her lawyers last month asked the Competition Appeal Tribunal to certify the case under the UK’s collective proceedings regime – which is roughly equivalent to the class action regime in the United States.

But the Tribunal ruled on Monday that Lovdahl Gormsen’s methodology of establishing any losses suffered by Facebook users needed “root-and-branch re-evaluation” for the case to continue.

Judge Marcus Smith did, however, give Lovdahl Gormsen’s lawyers six months to “file additional evidence setting out a new and better blueprint leading to an effective trial”.

Reuters noted that a spokesperson for Meta said the company welcomed the decision and referred to its previous statement that the lawsuit is “entirely without merit”.