Today, on the day of Facebook’s IPO, Bloomberg reports that Facebook (FB) is being sued for $15 billion for improper user tracking. The suit claims that Facebook invaded privacy by tracking users, logged in or out of Facebook.
The lawsuit was filed in Federal Court in California and combines 21 cases from across the country according to Stewards Law US LLP, a firm leading the claim. The main basis of the tracking claims is that Facebook continued to track users, even after they had signed out of their accounts.
The total of $15 billion comes from the U.S. Wiretap Act and the lawsuit states:
“provides statutory damages of the greater of $100 per violation per day, up to $10,000, per Facebook user,”
David Straite, partner at Stewards Law, told Bloomberg:
“This is not just a damages action, but a groundbreaking digital-privacy rights case that could have wide and significant legal and business implications.”
The case is Facebook Internet Tracking Litigation, 5:12-md-02314-EJD, U.S. District Court for the Northern District of California. For more information see Bloomberg.