(Reuters) — Facebook and its chief executive Mark Zuckerberg on Thursday won dismissal of an investor lawsuit accusing them of deceiving investors about the likely impact of a privacy breach on its stock price, though the investors will be have a chance to refile their case.
U.S. District Judge Edward Davila in San Jose, California said the investors had failed to allege that Facebook or its executives knowingly made false statements that led to investor losses.
Facebook and lawyers for the investors could not immediately be reached for comment.
The class action lawsuit, which was consolidated from several investor complaints filed since last year, also targeted Facebook chief organization officer Sheryl Sandberg and chief financial officer David Wehner.
The investors focus on a privacy breach,