Buyers File Swimsuit Towards Meta, Alleging Fb Exploited Customers to Flip a Revenue

A group of investors filed a class action lawsuit against Facebook’s parent company Meta Platforms on Friday alleging the company failed to disclose a number of content-related issues related to the social media platform.

The lawsuit, which was filed on behalf of investors who bought shares in Facebook earlier this year, argued that Facebook’s moderators had committed an “outrageous breach of public trust” by exploiting their users to maximize their profits increase.

Investors are demanding compensation for their shares, claiming that Facebook’s misrepresentations artificially raised the price of the shares.

“Defendants have repeatedly misrepresented investors and the public that using Facebook’s products does not harm children, that the company is taking aggressive and effective measures to stop the distribution of harmful content, and that Facebook applies its standards of conduct for all users equally “Legal filing said.

The lawsuit argues that while Facebook promoted all of these statements as factual, in reality the company took no action to stop the spread of misinformation. Further arguments suggest that Facebook told investors it had “the most robust content guidelines out there,” but knew it was wrong.

This information comes from the latest congressional statement by Facebook whistleblower Frances Haugen, who repeatedly described the platform as “dangerous”. Haugen, a former manager of the company, produced internal documents showing that the company knew Facebook was used to spread disagreement and harm users, but “refused to fix” those issues.

Facebook’s parent company, Meta, is being sued by investors who argue that the company’s practices have unjustifiably increased the price of its shares. The tech giant’s logo can be seen here.
Chesnot / Getty

Instead, Facebook “decided to maximize its profits at the expense of the safety of its users and the wider public and expose Facebook to serious reputational, legal and financial damage,” the lawsuit said.

Facebook also attempted to target “a valuable but untapped audience” of teenagers whom the company allegedly knew were particularly vulnerable to the harmful effects of social media.

In addition, Facebook has reportedly exempted millions of “high-profile” users from its code of conduct, according to an article in the Wall Street Journal originally describing the whistleblowing documents.

Facebook, along with its co-platform Instagram, has reportedly conducted its own research into the effects of its products on teenage girls.

This investigation found that Facebook “does.”[s] Body image problems are worse in one in three teenage girls, “and that many of those girls” blame Instagram for the rise in anxiety and depression.

The lawsuit also alleged that Facebook had “weak and ineffective responses” to stopping illegal activity on the platform. This includes the use of Facebook by drug cartel members and human traffickers.

Facebook was founded by Mark Zuckerberg in 2004 and has grown to become the world’s largest social networking platform, with an estimated 3.5 billion users on its websites.

The lawsuit alleged that the combined actions of the company exposed by the whistleblower were related to the “[employing of] Devices, schemes and contrivances to cheat. “

This lawsuit is the latest in a series of legal issues Facebook has seen in the past few weeks. On November 4, Phhhoto, a now-defunct startup, filed an antitrust lawsuit against the company accusing the tech giant of copying its work, according to The New York Times.

Newsweek has asked meta-platforms for a comment.

Comments are closed.