[Asia Economy Reporter Kwon Jae-hee] Meta, the world's largest social media company (formerly Facebook), has been sued in a class action lawsuit by state governments for deceiving the public despite knowing the harmful effects its services have on children.
According to the Wall Street Journal (WSJ) on the 15th (local time), Ohio Attorney General Dave Yost, a Republican, announced plans to file a class action lawsuit against Meta. The lawsuit alleges that Meta misled the public about how it controls its algorithms and the impact on children.
The lawsuit, filed on behalf of Meta investors and the Ohio Public Employees Retirement System (OPERS), a public pension fund, demands over $100 billion (approximately 118.4 trillion KRW) in damages and requires Meta to significantly change its policies to prevent future investor deception.
Attorney General Yost claims that from April 29 to October 21 this year, Facebook and executives including CEO Mark Zuckerberg deliberately misled the public about the negative effects of their services on minors to boost their stock price and deceive shareholders, violating federal securities laws.
Yost stated, "Facebook claimed to care for our children and remove people who post malicious comments, but in reality, it created unhappiness and division for profit."
Yost revealed that the truth began to emerge after WSJ started publishing reports under the title "The Facebook Files" on September 13, exposing various issues within the company.
He argued that following these reports exposing Facebook’s dark side, the company’s stock price dropped by $54.08 per share, resulting in losses exceeding $100 billion for OPERS and other Facebook shareholders.
Attorneys general from 44 states and territories, including Ohio, urged Facebook in May to abandon plans to create an Instagram for children under 13.
Facebook postponed the plan in September amid worsening public opinion following whistleblower revelations exposing the company’s secret flaws.
A Meta spokesperson said, "This lawsuit has no legal basis, and we will vigorously defend ourselves."
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