Meta class action lawsuit overview:
- Who: A group of consumers filed a class action lawsuit against Meta Platforms Inc.
- Why: The plaintiffs claim Meta enabled, facilitated and materially contributed to a multi million dollar stock manipulation scheme.
- Where: The class action lawsuit was filed in California federal court.
A new class action lawsuit accuses Meta Platforms Inc. of enabling, facilitating and materially contributing to a stock manipulation scheme that extracted millions of dollars from unsuspecting victims.
Plaintiffs Anthony Irving, Yaakov Strauss and Santosh Kumar filed the class action complaint against Meta on Feb. 5 in California federal court, alleging violations of state and federal laws.
The Meta class action alleges the company played a pivotal role in a stock manipulation scheme that used scam ads on its Facebook and Instagram platforms, as well as its WhatsApp messaging service, to defraud victims of millions of dollars.
The plaintiffs allege that Meta’s advanced advertising tools, which generate and target ads based on user data, were exploited by scammers to create and disseminate fraudulent investment ads.
The scam ads targeted specific user groups and lured victims into a pump-and-dump scheme involving Jayud Global Logistics Ltd. (JYD), a Chinese stock listed on NASDAQ, the plaintiffs allege.
The plaintiffs claim the scam led victims to purchase JYD shares at inflated prices, allowing the scammers to sell their holdings at a profit before the stock’s value plummeted, leaving victims with substantial losses.
Meta ignored scam ads, class action lawsuit says
The class action lawsuit alleges that Meta has long been aware of scam ads on its platforms but has failed to implement effective measures to monitor, identify and remove them.
Instead, Meta has invested in generative artificial intelligence tools that have exacerbated the problem by creating multiple variations of scam ads, increasing their reach and effectiveness, the plaintiffs say.
The plaintiffs allege that Meta’s failure to act is driven by its reliance on advertising revenue, a significant portion of which is derived from scammers. Despite promising users that it would not allow scam ads and would take action when alerted to them, the company has allegedly turned a blind eye to the problem, the lawsuit says.
The lawsuit seeks to represent anyone who was lured into investing in JYD between March 21, 2025, and April 2, 2025, directly or indirectly as a result of fraudulent advertisements on Facebook and Instagram and suffered losses as a result.
The plaintiffs seek certification of the Meta class action, damages, fees, costs and a court order requiring Meta to implement appropriate advertising review and monitoring procedures to prevent the creation of investment scam ads through its advertising tools.
In another Meta class action, two plaintiffs accuse Meta Platforms of unlawfully using financial professionals’ names, images, voices and personas in paid advertisements.
What do you think of the allegations made in this Meta class action lawsuit? Let us know in the comments.
The plaintiffs are represented by Leonid Kandinov of Morris Kandinov LLP.The Meta class action lawsuit is Irving, et al. v. Meta Platforms Inc., Case No. 26-cv-1127, in the U.S. District Court for the Northern District of California.
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