Facebook released its quarterly results Wednesday and it was not good news for investors, according to ABC News.
The company posted ongoing growth, slightly beating analyst predictions, but its earnings were plagued by high expenses and legal settlements. In particular, the company has tentatively agreed to a $550 million settlement in an Illinois class-action lawsuit.
According to ABC News, CFO David Wehner said the expenses were “largely driven by higher legal fees and settlements.”
“This includes charges related to a $550M settlement in principle we reached this month in connection with the Illinois Biometric Information Privacy Act litigation,” he continued.
The Illinois Biometric Information Privacy Act stipulates that users must be informed when their data is stored, why it is being stored and for how long. Facebook was sued because accusers say its photo tagging feature violates the law.
The stock price was down approximately 7% in Thursday morning trading following the revelations.