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Try CasePortal for FreeJ. McKeown denies a petition for panel rehearing and issues an amended opinion affirming in part a district court’s dismissal of a securities fraud action against Facebook. The complaint involves improperly harvested personal data from millions of unwitting Facebook users by Cambridge Analytica. Facebook allegedly retained copies of the data beyond Facebook’s control and knew of the misconduct for over two years but failed to inform affected users. Facebook shareholders filed suit, alleging that Facebook violated the Securities Exchange Act of 1934 by making materially misleading statements and omissions regarding the risk of improper access to Facebook users’ data. The shareholders did not adequately plead facts giving rise to "a strong inference of scienter" as to investigation statements offered by Cambridge Analytica. The district court did not err in dismissal for those statements. However, the dismissal is reversed as to other statements related to Facebook stock price drops. Affirmed in part.