A California federal judge signaled Wednesday that Meta Platforms Inc. may not easily escape a proposed class action accusing the tech giant of allowing hackers to seize users’ Facebook accounts — all while continuing to profit from their personal data and posted content.
U.S. District Judge William H. Orrick said he was “not inclined” to grant Meta’s full motion to dismiss but suggested he might trim portions of the complaint, particularly a breach of contract claim, allowing the plaintiffs an opportunity to amend it.
“This is a plausible theory,” Judge Orrick remarked during the Zoom hearing, referring to allegations that Meta maintained users’ licenses for profit even after hackers took over their accounts.
Users Claim Meta Profits From Hacked Accounts
The plaintiffs, led by Sara Isgur, allege that Meta ignored their pleas for help in regaining control of their hacked Facebook profiles — effectively letting cybercriminals exploit their accounts while Meta continued monetizing the data and content under its licensing terms.
Because users grant Meta a broad license to their content when joining Facebook, they argue they’re trapped: unable to delete hacked accounts or revoke Meta’s access to their data.
Meta’s defense insists the company isn’t liable for third-party account takeovers, citing its terms of service (TOS), which disclaim responsibility and limit liability. “Something cannot be a violation of the implied covenant if it is expressly permitted by the terms,” said Meta attorney Melissa Zappala of Dunn Isaacson Rhee LLP.
