Facebook shares slip on report of widened probe on data scandal

Facebook logo.(Reuters pic)

BENGALURU: Shares of Facebook Inc fell more than 1% in premarket trade on Tuesday, after a report said that a federal probe on the data breach linked to Cambridge Analytica was broadened and will include more government agencies.

Facebook faced intense scrutiny from the embarrassing scandal that affected millions of users whose data was improperly accessed by the political consultancy.

The Federal Bureau of Investigation, the Securities and Exchange Commission and the Federal Trade Commission have joined the Department of Justice in its inquiries about the two companies and the sharing of personal information of 71 million Americans, the Washington Post reported, citing five people.

A Facebook spokesperson told Reuters on late Monday that it is cooperating with officials in the US, UK and beyond.

“We’ve provided public testimony, answered questions, and pledged to continue our assistance as their work continues,” the spokesperson said.

The emphasis has been on Facebook’s sharing of information square with the underlying facts and whether the company made sufficiently complete and timely disclosures to the public and investors, according to the Washington Post.

Facebook shares were down 1.4% at US$194.64 in premarket trading on the Nasdaq.

The stock lost about 18% of its value in the seven trading days after the data scandal broke, but has since gained about 30%.