Meta Platforms, the parent company of Facebook and Instagram, and its CEO Mark Zuckerberg have successfully fended off a lawsuit alleging they misled shareholders regarding the company’s efforts to protect children using its platforms. On Tuesday, U.S. District Judge Charles Breyer in San Francisco dismissed the case, ruling that the plaintiff, Matt Eisner, failed to demonstrate any economic losses for shareholders stemming from Meta’s purported lack of disclosures.
The lawsuit accused Meta of not adequately informing shareholders about the severity of harmful content involving children, such as sexually explicit material, on its platforms. However, Judge Breyer stated that federal securities laws did not require Meta to disclose the full extent of such content or every child protection measure the company decided not to implement.
“In essence, Eisner would have had Meta argue against its own recommendations, tout the benefits of tools it ultimately rejected, highlight its own failures, and devalue its own successes,” Breyer wrote, emphasizing that such disclosures were not legally necessary.
Eisner’s lawsuit aimed to prevent Meta from holding its 2024 annual shareholder meeting until the company revised its proxy statement. It also sought to void election results if the meeting took place and asked Meta and Zuckerberg to cover Eisner’s legal fees.
Judge Breyer had previously refused to block the 2024 meeting in June, noting that many of Meta’s commitments to child safety in its proxy statements were “aspirational” and did not warrant legal action. The dismissal of the case was with prejudice, meaning Eisner cannot file another suit on the same issue.
Meta continues to face legal challenges on multiple fronts related to the safety of young users. Dozens of state attorneys general have sued the company, alleging that it has addicted children to its platforms while downplaying the associated risks. Hundreds of lawsuits have also been filed by parents, children, and school districts over social media addiction, with similar cases pending against other tech giants like TikTok and Snapchat.
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