META stock comes under fire after a group of whistleblowers came forward to sue the company, accusing it of making false claims about the privacy and security features of WhatsApp. Tesla CEO Elon Musk questioned the end-to-end security feature of WhatsApp on Tuesday, calling it “not secure.” The billionaire added that “Even Signal is questionable.”

The allegations come at a time when the tech giant is planning to test premium subscriptions for Instagram, Facebook, and WhatsApp. The development could add to META’s revenue and push its stock price in the indices.

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What Next For META Stock If WhatsApp Chats Are Not Safe?

META stock could come under intense pressure if WhatsApp is not end-to-end encrypted. However, the company has refuted the claims that the messaging app is not secure. “Any claim that people’s WhatsApp messages are not encrypted is categorically false and absurd,” said spokesperson Andy Stone.

“WhatsApp has been end-to-end encrypted using the Signal protocol for a decade. This lawsuit is a frivolous work of fiction,” he added. The plaintiff group, comprising members from Australia, Brazil, India, Mexico, and South Africa, alleges that META stores users’ communications and that company employees have access to these chats. If found guilty, the value of META stock could plummet.

The lawsuit is now at the US District Court in San Francisco, but the app says “only people in this chat can read, listen to, or share” the messages. The group alleges that WhatsApp’s privacy claims are false. Musk’s recent tweet on the issue has brought META stock into the spotlight.

Nonetheless, the Mark Zuckerberg-led company is firm in its stance that the privacy features are secure with end-to-end encryption. META stock is currently trading at the $672 level after rising close to 3.4% this month. Traders who took an entry position this year ended up making decent profits.