Meta Platforms, led by CEO Mark Zuckerberg, secured a significant legal victory on Tuesday after a U.S. District Court judge dismissed a shareholder lawsuit accusing the company of misleading investors about its efforts to protect children using Facebook and Instagram. The lawsuit claimed Meta failed to adequately disclose the extent of harmful content on its platforms, particularly sexually explicit material involving minors.
U.S. District Judge Charles Breyer, ruling from San Francisco, determined that the plaintiff, Matt Eisner, could not demonstrate that Meta’s alleged omissions in its proxy statement caused economic losses for shareholders. Judge Breyer further ruled that federal securities law does not require Meta to reveal every aspect of child protection strategies it chose not to implement, nor does it compel the company to outline the full scope of harmful content present on its platforms.
The lawsuit sought to prevent Meta from holding its 2024 annual meeting until it amended the proxy statement to provide more transparency about its child safety measures. It also aimed to invalidate any election results from the meeting and compel Meta and Zuckerberg to cover Eisner’s legal fees. However, Breyer found many of Meta’s commitments to child safety in its proxy statement to be “aspirational” and insufficient grounds for the lawsuit. In his ruling, he stated that Eisner’s demands would have required Meta to undermine its own initiatives and emphasize its perceived failures, which was not legally necessary.
Eisner’s legal team has yet to comment on the dismissal, while Meta and Zuckerberg’s representatives have also remained silent on the ruling. With the case dismissed “with prejudice,” Eisner cannot refile the lawsuit.
Although this legal battle has concluded in Meta’s favor, the company still faces numerous lawsuits from state attorneys general and private individuals. These cases accuse Meta of addicting children to its platforms and downplaying associated risks. Similar lawsuits have been filed against other social media giants like TikTok and Snapchat.
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