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Facebook, Meta Securities Class Action Lawsuit Overview:
- Who: Juan Perez filed a class action lawsuit against Meta Platforms, Inc., formerly known as Facebook.
- Why: The plaintiff alleges that Facebook hid its effect on teenage users from investors.
- Where: The lawsuit is pending in California federal court.
Investors in Meta Platforms Inc. filed a securities class action against the company, saying the company knows its products damage the mental health of its teenage users and failed to tell shareholders.
At least as early as 2019, Facebook conducted detailed in-house research that showed the company exacerbated negative body image issues for one in three teenage girl users on Instagram’s platform. Additionally, teens in Facebook’s research blamed Instagram for increased rates of anxiety and depression.
“Rather than making meaningful changes to safeguard the health and safety of those vulnerable teenage girl users, and without any public disclosure in its annual reports for 2019 and 2020, Facebook continued the implementation of techniques that ‘increase the frequency and duration of engagement by young users and the resulting harms caused by such extended engagement,’ the lawsuit states.
Facebook ‘Failed’ To Reveal Significant Results of Internal Studies on Instagram Mental Health, Class Action Claims
The failure of Facebook to include any information regarding its internal studies indicating Instagram’s harm to teenage girls in its annual reports for 2019 and 2020 is a material omission of information significant to investors’ decisions to buy or sell the company’s stock.
“Had plaintiff and the other members of the class been aware that the market price of the company’s securities had been artificially and falsely inflated by the company’s and the individual defendants’ misleading statements and by the material adverse information which the company’s and the individual defendants did not disclose, they would not have purchased the company’s securities at the artificially inflated prices that they did, or at all,” the lawsuit claims.
The plaintiff, on behalf of himself and the proposed Class Members, seeks an order requiring the defendants to pay damages sustained by the plaintiff and the class due to the alleged acts and transactions; pre- and post- judgment interest; and attorneys’ fees, expert fees and other costs.
Are you a Meta investor who was “duped” by Facebook’s nondisclosure? Let us know in the comments!
The plaintiff is represented by Francis A. Bottini, Jr., Albert Y. Chang and Yury A. Kolesnikov of Bottini & Bottini, Inc.
The Meta Securities Class Action Lawsuit is Perez, et al. v. Meta Platforms, Inc., et al., Case No. 3:21-cv-09041-CRB, in the U.S. District Court for the Northern District of California San Francisco Division.
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54 thoughts onInvestors File Class Action Lawsuit Against Meta After Research Shows Instagram Harms Mental Health of Teenagers
Add myself also cause it has effected my 3 children I have, thank you.