Meta Platforms (META) is facing a new lawsuit that questions how private WhatsApp messages really are. An international group of plaintiffs filed the case on Friday in the U.S. District Court in San Francisco.
Claim 50% Off TipRanks Premium
* Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
* Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential
The plaintiffs claim Meta misled users by saying WhatsApp chats are fully private and secure. They argue that Meta and WhatsApp can store, review, and access most user messages despite claims of end-to-end encryption.
WhatsApp promotes end-to-end encryption as a core feature of its service. The app states that only the sender and receiver can read or share messages. According to the lawsuit, those statements are false and caused users to trust the platform under false terms. The plaintiffs come from Australia, Brazil, India, Mexico, and South Africa. They are asking the court to approve the case as a class action that could cover users worldwide.
Meanwhile, META shares rose 1.72% on Friday, closing at $658.76.
Meta Pushes Back and Calls Claims False
Meta denied the allegations and said the lawsuit was meritless. A company spokesperson said Meta plans to seek sanctions against the lawyers who filed the case. “Any claim that people’s WhatsApp messages are not encrypted is categorically false and absurd,” said Meta spokesperson Andy Stone. He added that WhatsApp has used end-to-end encryption based on the Signal protocol for a decade.
The lawsuit claims that Meta stores the content of messages and that employees can access them. It also cites unnamed whistleblowers but does not explain who they are or how the claims were proven. Meanwhile, attorneys from Quinn Emanuel Urquhart & Sullivan and Keller Postman are listed in the filing. However, they did not respond to requests for comment. One lawyer for the plaintiffs declined to comment.
For investors, the case adds to ongoing scrutiny around Meta’s privacy practices. While the claims remain unproven, the lawsuit highlights how trust and data protection remain key risks for large social media platforms.
Is Meta a Good Stock to Buy?
On the Street, Meta Platforms holds a Strong Buy consensus view. The average META stock price target is $820.21, implying a 24.51% upside from the current price.
