Sections of this topic
In this article, we’ll discuss the recent lawsuit filed by shareholders against Meta Platforms Inc. and its executives and directors for allegedly failing to address sex trafficking and child exploitation on Facebook and Instagram.
The complaint accuses the company’s leadership of ignoring evidence of criminal activity and not protecting the interests of the company and shareholders.
Key Takeaways:
- Shareholders are suing Meta Platforms Inc. for alleged inaction on sex trafficking and child exploitation on its platforms.
- The lawsuit targets current and former members of the company’s board and management for breaching their duties.
- Meta Platforms Inc. has faced scrutiny over its data practices, antitrust violations, and mental health impact on users, especially children and teens.
- The company denies the allegations and claims to have policies in place to prevent exploitation.
Shareholders Sue Meta Platforms Inc.
A group of pension and investment funds that have invested in Meta’s stocks have filed a lawsuit in Delaware Chancery Court against the company’s board and management for allegedly not doing enough to stop the widespread sex trafficking and child exploitation happening on Facebook and Instagram.
The lawsuit accuses them of being “well aware” of the criminal activity but taking no action to protect the company and shareholders’ interests.
Allegations of Sex Trafficking and Child Exploitation on Facebook and Instagram
The lawsuit alleges that Meta’s platforms have facilitated perpetrators of sex trafficking, human trafficking, and child sexual exploitation on a massive scale.
Internal records reveal that the company had “underreported this behavior” even after Apple threatened to remove Facebook and Instagram from its App Store.
The lawsuit claims that the company’s leadership ignored the problem despite being well-informed.
Scrutiny Over Data Practices and Mental Health Impact on Users
Meta Platforms Inc. has faced examination from the court, investors, and lawmakers regarding its data policies, potential breaches of antitrust laws, and negative effects on mental health among users, particularly children and teenagers.
Families of teenagers and younger children have filed hundreds of lawsuits claiming mental health problems from becoming addicted to Facebook and Instagram, and some school districts have also sued over the problem.
Meta Platforms Inc. Denies Allegations of Inaction
Meta Platforms Inc. denies the allegations of inaction on sex trafficking and child exploitation, stating that it has policies in place to prevent such activities.
The company believes that the lawsuit mischaracterizes its efforts to combat this type of criminal activity and that its goal is to prevent exploitation of others on its platform.
Conclusion
Shareholders of Meta Platforms Inc. have filed a lawsuit against the company’s board and management for allegedly ignoring evidence of rampant sex trafficking and child exploitation on Facebook and Instagram.
The company has come under increasing scrutiny for how it handles user data, allegations of violating antitrust laws, and the impact its platforms have on the mental health of users, particularly children and teenagers.
However, Meta Platforms Inc. denies the allegations and claims to have policies in place to prevent such activities.
