Good News For Meta Stock Fans

Meta Platforms META secured a legal victory after a U.S. judge dismissed a proposed lawsuit alleging that WhatsApp's end-to-end encryption failed to protect users' private messages.

The complaint, brought by users from Australia, Brazil, India, Mexico and South Africa, alleged that Meta improperly intercepted, accessed and stored encrypted WhatsApp messages despite promoting the platform as secure. The court ruled that the plaintiffs did not provide enough factual support for claims based on unnamed whistleblowers, although it allowed them to amend and refile the case.

The dismissal also prevented the case from immediately proceeding as a proposed class action that could have included thousands of WhatsApp users. Attorneys representing the plaintiffs said they intend to submit a revised complaint with additional details supporting the whistleblower allegations.

Meta has faced several legal challenges this year, including litigation over claims that Facebook and Instagram were designed in ways that encouraged excessive use among younger users.

Meta shares edged higher in early trading following the court decision. Wall Street analysts continue to maintain a broadly bullish outlook on the stock, with consensus ratings remaining in the Strong Buy category.