Important Takeaways
- The complaint claimed that Zuckerberg and Meta had misled investors regarding the safety of children.
- The plaintiffs were found not to have proven intentional misrepresentation or economic damage by the court.
- Lawsuits against Meta for data privacy and social media addiction are still pending.
Meta and CEO Mark Zuckerberg were found not to have mislead investors about the company’s efforts to protect children online by a U.S. district judge on Tuesday.
Matt Eisner, a stakeholder, filed a complaint alleging that the platform had deceived investors about its efforts to safeguard youngsters on Facebook and Instagram.
Judge Charles R. Breyer rejected the complaint, according to Reuters, because the claims did not satisfy the legal requirements necessary to establish a violation of federal securities laws.
Eisner’s complaint said that Meta and its CEO, Mark Zuckerberg, had failed to disclose enough information regarding how their platforms safeguarded youngsters. Judge Breyer, however, concluded that the plaintiffs could not prove that the alleged false statements caused any financial harm.
The court decided that Meta’s remarks on the subject did not amount to deliberate deception, despite the fact that child protection is unquestionably vital.
Breyer said the plaintiff could not prove that Meta executives acted in bad faith or purposefully mislead shareholders.
Meta Wins One, But More Lawsuits Are Coming
Given that Meta is still under close scrutiny for its user safety policies on its platforms, including Facebook and Instagram, the dismissal represents a major legal victory for the company.
Meta is now dealing with a number of legal issues, including this case. The business is also juggling ongoing inquiries into how it handles customer data and privacy issues.
The European Union began a probe in May to find out if Meta’s platforms cause mental health issues in young users.
Even though Meta wins this one, these incidents highlight the larger difficulties the digital behemoth confronts in juggling its commercial objectives with user safety and legal requirements.
