Dave Yost, the Attorney General of Ohio, has reportedly announced that he is filing a lawsuit against Meta, the American social media company formerly known as Facebook, in light of the revelations made by Frances Haugen, the Facebook-whistleblower, and the series of internal business records she exposed.
The lawsuit, which was filed on behalf of a few investors and the Ohio Public Employees Retirement System, claims that the company misled people about its algorithm as well as the supposed harms its own individual research showed its applications can cause users.
The suit claims that executives of Facebook-turned-Meta broke the securities law by making false assertions about the security, safety, as well as privacy of its platforms to elevate the company's stock.
According to the lawsuit, Meta (FB) shares have fallen around 7% since reports on Haugen's allegations and internal documents started two months ago, damaging investors to the tune of more than $100 billion.
The lawsuit claims that Meta misrepresented to investors and the public that the use of Facebook's products causes no harm to children and that the corporation takes assertive and potent steps to counter the spread of any harmful content. The lawsuit allegedly states that Facebook applies its standards of behavior equally to all users.
As per the complaint, Facebook’s investors learned the truth recently when Frances Haugen, the whistleblower and former Facebook employee supposedly leaked internal documents showcasing the ‘defenders’ awareness regarding Facebook’s facilitation of dissension, violent extremism, illegal activity, and harm to the users.
The complaints notes the organization along with CEO Mark Zuckerberg, vice president of global affairs Nick Clegg, and CFO David Wehner, as the defendants.
Haugen presented the U.S. Securities and Exchange Commission, and politicians with internal documents which are now known as the ‘Facebook Papers’.
Last month, another former Facebook employee confidentially filed a suit with the SEC, mirroring charges that were identical to those of Haugen's.
According to the Ohio complaint, filed on Friday, these revelations eliminated more than $100 billion in value for shareholders and caused significant reputational harm to Facebook.
Haugen's accusations have been consistently rejected by Meta (FB), which says that the documents distort the firm's research and actions.