NEW YORK (TheStreet) -- Facebook (FB) rose Thursday after users who sued the social media company over its alleged releases of user identities to other parties could not revive the lawsuit via appeal.
The U.S. Court of Appeals in San Francisco ruled Thursday the users did not claim Facebook disclosed the content of their online activities, a mandatory component to progress the lawsuit under the Electronic Communications Privacy Act. The lawsuit had been dismissed in 2011.
Facebook users claimed the site "automatically and surreptitiously" gave information to advertisers about users and how they used the social media site's services when they clicked on advertisements "contrary to Facebook's explicit privacy promises," according to Bloomberg.
The court also denied a similar appeal from Zynga (ZNGA) users Thursday.
Separately, TheStreet Ratings team rates FACEBOOK INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."