Facebook Sued for $100B—Negative Effects on Children

Attorney General Dave Yost of Ohio has filed a lawsuit against Facebook, which was recently rebranded Meta, for its algorithms’ negative impact on minors.

QUICK FACTS:
  • According to court filings, Facebook’s management broke federal securities law between April and October 2021, in order to raise revenues, by intentionally deceiving the public about its algorithms and the bad consequences its products may have on children, according to The Wall Street Journal (WSJ).
  • The lawsuit was filed on behalf of Meta investors and the Ohio Public Employees Retirement System, and seeks to recover more than $100 billion.
  • According to WSJ, “The lawsuit alleges that between April 29 and Oct. 21, 2021, Facebook and its executives violated federal securities law by intentionally misleading the public about the negative impact of its products on minors in an effort to boost its stock and deceive shareholders.”
  • The Ohio attorney general is suing Meta Platforms Inc. for allegedly misleading the public about how it controlled its algorithm and the effects its products have on children.
  • “Facebook said it was looking out for our children and weeding out online trolls, but in reality was creating misery and divisiveness for profit,” Attorney General Dave Yost said in a statement.
WSJ REPORTS:

The Facebook Files series revealed that the company knew its photo-sharing app Instagram was harmful to some teenage girls among other things.

Those revelations led Facebook stock to fall by $54.08 a share and caused the Ohio Public Employees Retirement System and other Facebook investors to lose more than $100 billion, Mr. Yost said.

He said, with the lawsuit, he intends to demonstrate that what he called improper targeting of children by the social media giant will not be tolerated