Meta class action claims company enabled stock manipulation in ads scam

Meta class action lawsuit overview:

• Who: A group of complainants filed a class action lawsuit against Meta Platforms Inc.
• Why:  They claim Meta allowed scam ads to proliferate on its social media platforms.
• Where: The Meta class action lawsuit was filed in California federal court.

A new nationwide class action lawsuit alleges Meta Platforms enabled and facilitated a stock manipulation scheme that used the company’s social media platforms to extract millions of dollars from victims. 

Lead plaintiff Joshua Bouck claims Meta allowed scammers to use its advertising tools to target victims with ads for supposed investment clubs associated with celebrities, well-known investors and advisory firms.

The plaintiffs argue victims who clicked on the ads were added to WhatsApp groups where the scammers posed as financial advisors and encouraged victims to purchase securities whose prices the scammers were manipulating.

They claim to have lost more than $3 million in total from investing in a fraud scheme carried out by China-based educational services provider China Liberal Education Holdings Ltd. (CLEU) and advertised on Facebook and Instagram.

“Meta’s advertising tools and its failure to address scam ads on its platforms were essential to, enabled and facilitated the CLEU Scheme,” the Meta class action states.

The plaintiffs want to represent a nationwide class of individuals who were lured into investing in CLEU between Jan. 22, 2025, and Jan. 30, 2025, directly or indirectly as a result of fraudulent advertisements on Facebook and Instagram and suffered losses as a result.

Meta allegedly failed to address scam ads on its platforms

The plaintiffs argue Meta has long been aware of scam ads on its social media platforms, but that it has refused to invest meaningfully in technology, personnel and processes to monitor, detect and remove them.

“Meta has deliberately turned a blind eye to the problem of scam ads and has continued to court business from known scammers,” the Meta class action states.

The plaintiffs claim Meta’s advertising tools determined the content and appearance of the ads used to perpetrate the scam and directed the ads to particular Facebook and Instagram users based on data indicating the users would be vulnerable to the ads.

“Meta’s tools also optimized the particular ads targeted to each user, including by showing users ads featuring celebrities or investors of their same race or ethnicity in order to increase the appeal of the ads,” the Meta class action says.

The plaintiffs argue the scammers would not have been able to accomplish their scheme on the scale and with the efficiency they achieved without Meta’s advertising tools.

The plaintiffs demand a jury trial and request declaratory and injunctive relief and an award of monetary damages for themselves and all class members.

In other Meta news, a California federal judge recently ruled Meta Platforms and other social media companies must face claims from school districts and local government entities alleging the companies purposely designed their platforms to be addictive for children.

What do you think of the allegations in this Meta class action lawsuit? Join the discussion in the comments.

The plaintiffs are represented by Leonid Kandinov, Aaron T. Morris, Andrew W. Robertson and William H. Spruance of Morris Kandinov LLP.

The Meta class action lawsuit is Bouck, et al. v. Meta Platforms Inc., Case No. 3:25-cv-05194, in the U.S. District Court for the Northern District of California.

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