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Ohio’s attorney normal recordsdata securities class motion in opposition to Fb

The lawsuit alleges that Facebook – now known as Meta – is violating securities laws by allegedly misleading investors about its product’s negative mental health effects.

Ohio Attorney General Dave Yost has filed a lawsuit against Meta – formerly known as Facebook – for allegedly violating U.S. securities laws by misleading investors about the harm its products can do.

According to CNBC, Yost made a specific claim that Facebook applications had quantifiable negative effects on the health and well-being of children.

The lawsuit, CNBC adds, was filed as a potential class action lawsuit on behalf of an Ohio pension fund and other Facebook investors.

Yost’s lawsuit follows revelations by former Facebook employee Frances Haugen, who made a “treasure trove” of documents available to Congress, various media and data protection activists. Most of these documents relate to Facebook’s own internal research programs, according to CNBC.

Overall, they suggest that Facebook has already conducted research into the psychological effects of Instagram – a subsidiary of Meta – on teenagers.

Facebook’s data scientists, CNBC says, found that Instagram made body image problems worse for one in three teenage users.

Facebook founder and CEO Mark Zuckberberg in 2018. Image via Wikimedia Commons / User: Anthony Quintano. (CCA-BY-2.0).

“The defendants were aware that Facebook’s platforms encourage disagreement, illegal activity and violent extremism, and cause significant harm to users, especially children, but Facebook refused to correct these issues,” the lawsuit said. “All in all, these revelations wiped out more than $ 100 billion in shareholder value and left Facebook with immense reputational damage.”

After Facebook released its reports, the company’s share value plummeted, causing it and its investors to lose more than $ 100 billion.

According to The Verge, the Ohio Public Employees Retirement System manages assets valued at approximately $ 125 billion on behalf of an estimated 1.1 million active members, retirees, and other beneficiaries.

Prior to the report’s release, OPERS 2021 “bought shares of Facebook Class A common stock at artificially inflated prices” and then “suffered damages from alleged violations of state securities laws.”

“Facebook said it takes care of our children and weed out online trolls, but in reality it creates misery and division for profit,” Yost said in a statement. “We are not people for Mark Zuckerberg, we are the product and we are used against each other out of greed.”

Still, Facebook attorneys have stated that the lawsuit is “unfounded” and have pledged to “vigorously defend” the company.

Yost, The Verge adds, is trying to win back the $ 100 billion OPERS and other investors, and other investors say they lost to Facebook’s alleged deception; The attorney general is also re-calling for Facebook to make significant reforms to ensure it doesn’t mislead the public about its internal practices.

sources

The Ohio Attorney General is filing a lawsuit alleging that Facebook misled investors about security measures

Ohio’s largest state pension is suing Facebook, saying the media giant has misled investors

Ohio is suing Facebook, saying it has misled the public about how its products affect children

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