The lawsuit alleges that between April 29 and October 21, Facebook and some senior executives violated federal safety laws by misleading shareholders about how their products could harm children.
Nov 16 (News) – Ohio Attorney General Dave Yost has announced a lawsuit against Facebook mom Meta on allegations that the company misled the public about the negative effects its products had on the health and wellbeing of children.
It is also alleged that the company’s platforms are easy to share and favor high-profile users, and Facebook CEO Mark Zuckerberg and other company officials knew they were making false claims about the security and privacy of its platforms.
The lawsuit, which was filed on behalf of the Ohio Public Employees Retirement System and other investors, said the truth, which had surfaced over about a month, caused Facebook stock to devalue $ 54.08 per share, which the operators caused and other Facebook investors cost $ 100 billion.
Plaintiffs quoted Facebook whistleblower Frances Haugen, who testified before the Senate last month that the social media company knew its products were harming children and making it easier to divide, but didn’t make the necessary changes because it was more about that Profit was concerned.
They also cited September Wall Street Journal coverage which showed that Facebook’s countercheck shields millions of celebrities, politicians and other high-profile users from its normal rules for moderating content. The company admitted in internal documents that WSJ received for the article: “We don’t really do what we say publicly.”
Last month, Facebook’s board of directors also found the platform’s lack of transparency about a program protecting high-profile users from rules on content moderation.
“Facebook said it would look out for our children and weed out online trolls, but in reality it was doing misery and division to make a profit,” Yost said in a statement Monday. “We are not people for Mark Zuckerberg, we are the product and we are used against each other out of greed.”
The complaint refers to the parent company as Facebook for easier reference, but notes that Facebook changed its parent company’s company name to Meta late last month.
In addition to trying to reclaim $ 100 billion, the lawsuit also calls for Facebook to make significant reforms to ensure it doesn’t mislead the public about its internal practices.
Meta spokesman Joe Osborne said in a statement emailed to The Verge that the lawsuit was “illegitimate and we will vigorously defend ourselves”.
CNBC similarly confirmed a meta-spokesperson calling the lawsuit “without merit”.
Yost plans to ask the court to stop OPERS by Jan.
As of December 31, 2020, OPERS had approximately $ 125 billion in assets under management on behalf of more than 1.1 million active members, retirees and beneficiaries, according to the lawsuit.
The system “bought Facebook Class A shares at artificially inflated prices” between April 29 and October 21, and “suffered damages for alleged violations of federal securities laws,” the lawsuit said.
In May, Yost and 43 other attorneys general sent a letter to Zuckerberg asking him to stop plans to launch an Instagram app for children.
In late September, Facebook stopped Instagram Kids to investigate child safety.