Dave Yost who is an Ohio Attorney General made an announcement that he will be suing Meta, the social media giant which was formerly known as Facebook. Meta will be sued based on revelations which were made by whistleblower Frances Haugen and the trove of internal company documents which she leaked.
On behalf of the Ohio Public Employees Retirement System and other investors, the securities lawsuit was filed, which alleged that the company misled the user and other public about its algorithm and the harms the company’s own research showed its apps can cause to the users.
It also claims that in order to boost its stock, Facebook- now known as Meta executives violated securities law by making false statements about the “safety, security and privacy of its platforms”
Two months ago when Haugen’s claims and the internal documents started coming out and reporting, Meta (FB) shares have fallen around 7% since then. Which resulted in harming investors to the tune of more than $100 billion, according to the lawsuit.
“[Meta] repeatedly misrepresented to investors and the public that use of Facebook’s products does not harm children, that the Company takes aggressive and effective measures to stop the spread of harmful content, and that Facebook applies its standards of behavior equally to all users,” the lawsuit alleges.
“Facebook investors recently learned the truth when the former Facebook employee turned whistleblower, Frances Haugen, came forward with internal documents showing that Defendants were aware that Facebook’s platforms facilitate dissention, illegal activity, and violent extremism, and cause significant harm to users,” the complaint states. It lists the company, as well as CEO Mark Zuckerberg, CFO David Wehner, and vice president of global affairs Nick Clegg as defendants.
“This suit is without merit and we will defend ourselves vigorously,” Meta spokesperson Andy Stone said in a statement to CNN Business Monday.