Meta class action lawsuits overview:
- Who: A California federal judge dismissed two class action lawsuits against Meta Platforms Inc.
- Why: The judge ruled the Meta class actions were barred by the Securities Litigation Uniform Standards Act.
- Where: The Meta class action lawsuits were filed in California federal court.
A California federal judge has dismissed two class action lawsuits alleging Meta Platforms used its artificial intelligence tools to enable pump-and-dump schemes that caused nearly $30 million in investor losses.
U.S. District Judge William H. Orrick ruled the Meta class actions were barred by the Securities Litigation Uniform Standards Act, which prevents private parties from filing a class action based on state law claims alleging defendants made a “misrepresentation or omission or employed any manipulative or deceptive device” in connection with the purchase or sale of certain securities.
The first Meta class action lawsuit, filed in November 2025, involved a scheme allegedly connected to shares of Ostin Technology Group Co. Ltd., a Chinese company that manufactures LCD technology used in consumer electronics.
The second lawsuit, filed in February, alleged a similar pump-and-dump scheme involving the stock of Chinese logistics company Jayud Global Logistics.
Class actions alleged Meta was aware of scam ads on its platform
The plaintiffs claimed Meta has long been aware of scam ads on its social media platforms but has failed to implement technology or processes to monitor, identify and prevent them. They said they were targeted through advertisements for supposed investment clubs associated with famous people.
According to the complaints, Meta users who clicked the ads were added to WhatsApp groups where scammers posing as financial advisers urged them to purchase securities whose prices had been manipulated, enabling the scammers’ co-conspirators to sell their shares at inflated prices for substantial illicit profits.
The plaintiffs argued Meta’s alleged role in the fraudulent scheme was limited to its early stages and did not directly involve the purchase or sale of securities. They said that at a later stage in the scheme, scammers made misrepresentations to the victims within WhatsApp chat groups.
Judge Orrick found that the cases aligned with a recent ruling finding such state claims are barred under federal securities law. He dismissed the Meta class action lawsuits without prejudice, meaning the plaintiffs can file them again.
Meanwhile, another class action lawsuit alleges WhatsApp, Meta, Accenture PLC and Accenture LLP intercepted users’ private WhatsApp messages and shared them with third parties without authorization.
What do you think of the judge’s decision to dismiss the Meta class actions? Let us know 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 lawsuits are Irving, et al. v. Meta Platforms Inc., Case No. 3:26-cv-01127, and Daigneau, et al. v. Meta Platforms Inc., Case No. 3:25-cv-10180, both in the U.S. District Court for the Northern District of California.
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