The Securities and Exchange Commission is expected to announce a settlement with Facebook Inc. on Wednesday related to claims it inadequately disclosed risks involving its privacy practices, a person familiar with the matter said.
The settlement, which is expected to include a fine larger than $100 million, focuses on allegations the social-media company insufficiently warned investors that developers and other third parties may have obtained users’ data without their permission or in violation of Facebook policies, the person said.
The SEC began probing Facebook FB, +0.02% after revelations that Cambridge Analytica, a data-analytics firm that had ties to President Donald Trump’s 2016 campaign, got access to information on millions of Facebook users.
The SEC is one of several government agencies investigating Facebook and its handling of user data. It enforces securities laws governing what must be disclosed to shareholders so they can make informed investment decisions.
An expanded version of this report appears on WSJ.com.
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