Meta Stock Hits Turmoil After WhatsApp Privacy Lawsuit Shock

Whistleblowers sue Meta claiming WhatsApp chats are accessible to employees; Meta denies allegations as Musk questions security.

  • META faces a lawsuit alleging WhatsApp privacy claims are false and that the company can access user chats.
  • A group of plaintiffs from multiple countries brought the case to the U.S. District Court in San Francisco via a lawsuit filing.
  • Elon Musk publicly questioned WhatsApp’s security, calling it “not secure.” and saying “Even Signal is questionable.”
  • META denies the claims, with spokesperson Andy Stone saying “Any claim that people’s WhatsApp messages are not encrypted is categorically false and absurd.”
  • The legal dispute comes as META plans to test premium subscriptions for its apps, a move that could affect revenue and market value.

A group of whistleblowers has sued META, alleging the company misrepresented the privacy and security of WhatsApp, and claiming employees can access user chats. The plaintiffs, from Australia, Brazil, India, Mexico, and South Africa, filed the case in the U.S. District Court in San Francisco, according to a lawsuit filing. The complaint says META stores communications and that its privacy statements are false.

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The legal action coincides with public comments by Elon Musk, who on Tuesday tweeted that WhatsApp is “not secure.” He added that “Even Signal is questionable.” The remarks have drawn additional attention to the case and to META’s messaging claims.

META issued a firm rebuttal through spokesperson Andy Stone, who called the allegations false and labeled the suit a sham. He said “Any claim that people’s WhatsApp messages are not encrypted is categorically false and absurd.” He also stated “WhatsApp has been end-to-end encrypted using the Signal protocol for a decade. This lawsuit is a frivolous work of fiction.”

The company maintains that WhatsApp messages are accessible only to chat participants, quoting that “only people in this chat can read, listen to, or share” the content. The plaintiffs disagree and allege broader access by the company and its staff.

The dispute arrives as META moves to expand monetization, seeking to test premium subscriptions for Instagram, Facebook, and WhatsApp. META shares traded near $672 after a roughly 3.4% gain this month, and the company says the privacy features remain secure.

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