Meta prevails in shareholder child safety lawsuit
A US judge dismissed a shareholder lawsuit against Meta over its child safety policies on Facebook and Instagram.
Meta Platforms and its CEO, Mark Zuckerberg, successfully defended against a lawsuit claiming the company misled shareholders about child safety on Facebook and Instagram. A US federal judge dismissed the case on Tuesday.
Judge Charles Breyer ruled that the plaintiff, Matt Eisner, failed to demonstrate that shareholders experienced financial harm due to Meta’s disclosures. He stated that federal law does not require companies to reveal all decisions regarding child safety measures or focus on their shortcomings.
Eisner had sought to delay Meta’s 2024 annual meeting and void its election results unless the company revised its proxy statement. However, the judge emphasised that many of Meta’s commitments in its proxy materials were aspirational and not legally binding. His dismissal, issued with prejudice, prevents Eisner from filing the same case again.
Meta still faces legal challenges from state attorneys general and hundreds of lawsuits from children, parents, and schools, accusing the company of fostering social media addiction. Other platforms, such as TikTok and Snapchat, also confront similar legal actions.
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