Facebook says it may get hit with FTC fine worth up to $5 BILLION

Mail Online | 4/24/2019 | Annie Palmer For Dailymail.com
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Facebook is taking on a multi-billion dollar charge that's tied to the Federal Trade Commission's investigation into the firm's privacy debacles.

In its latest earnings report, the social media giant said it expects to assume a charge between $3 billion and $5 billion in connection with an ongoing FTC probe.

Charge - Dent - Company - Profits - Quarter

The one-time charge made a dent in the company's profits for the quarter, with its net income down 51 percent compared to the same quarter last year.

Meanwhile, Facebook's revenue continued to grow in its latest quarterly earnings report, soaring as much as 26 percent compared to the same period in 2018.

Wall - Street - Facebook - FTC - Fine

Wall Street didn't seem too concerned about Facebook's hefty FTC fine, however, as the company's stock climbed 5.7 percent to $182.58 in after-hours trading on Wednesday.

The FTC opened an investigation into Facebook's privacy dealings last March in response to the Cambridge Analytica scandal, which saw some 87 million users' data harvested and shared with Trump-affiliated campaign research firm Cambridge Analytica.

Investigation - Facebook - Charge - Worth - Settlement

The investigation remains ongoing, but Facebook now expects to take on a charge worth as much as $5 billion from its settlement with the agency.

'In the first quarter of 2019, we reasonably estimated a probable loss and recorded an accrual of $3.0 billion in connection with the inquiry of the FTC into our platform and user data practices, which accrual is included in accrued expenses and other current liabilities on our balance sheet,' the...
(Excerpt) Read more at: Mail Online
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