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Try CasePortal for FreeJ. McKeown finds that the district court properly dismissed challenged statements regarding the risk of security breaches and the risk of the public not perceiving Facebook’s products to be “useful, reliable, and trustworthy” in a class action third amended complaint concerning the purchase of Facebook common stock in 2017 and 2018. The class alleges a violation of the Securities Exchange Act concerning an incident in March of 2018 when news broke that Cambridge Analytica improperly harvested personal data from millions of unwitting Facebook users and retained copies of the data beyond Facebook’s control. Facebook also allowed "whitelisted third-party apps" to access users’ Facebook friend data without the users’ friends’ consent. The public later learned that Facebook had known of Cambridge Analytica’s misconduct for over two years and failed to inform affected users. Cambridge Analytica and whitelisting revelations, and not any other factor, caused a July 2018 stock drop. The panel reversed the lower court’s dismissal of claims as to Facebook’s statements regarding data control that predated the whitelisting revelation. Affirmed in part.