Meta Platforms defeats shareholder lawsuit over child safety claims
By Jonathan Stempel
Oct 22 (Reuters) -Meta Platforms META.O and Chief Executive Mark Zuckerberg won the dismissal of a lawsuit claiming they misled shareholders in Meta's proxy statement about their ability to ensure the safety of children who use Facebook and Instagram.
In a decision on Tuesday, U.S. District Judge Charles Breyer in San Francisco said the plaintiff Matt Eisner failed to show that shareholders suffered economic losses from Meta's alleged inadequate disclosures.
He also said federal securities law did not require Meta to detail the severity of sexually explicit content and sexual exploitation of children on its platforms, or all the child protection strategies it decided not to adopt.
"In essence, Eisner would have had Meta argue against its own recommendations, tout the benefits of tools it ultimately rejected, highlight its own failures, and devalue its own successes," Breyer wrote. "That is not necessary."
Eisner's lawyers did not immediately respond to requests for comment. Lawyers for Meta and Zuckerberg did not immediately respond to similar requests.
The lawsuit sought to block Meta from holding its 2024 annual meeting until the proxy statement was amended, void election results if the meeting were held, and have Meta and Zuckerberg cover Eisner's legal fees and costs.
Breyer had in June refused to enjoin the meeting, saying many of Meta's assurances in the proxy statement that it was committed to children's safety were simply "aspirational" and did not justify the lawsuit.
Tuesday's dismissal was with prejudice, meaning Eisner cannot sue Meta and Zuckerberg again.
Meta still faces lawsuits by dozens of state attorneys general accusing the Menlo Park, California-based company of addicting children to its apps while downplaying the risks.
It also faces hundreds of lawsuits by children, their parents and school districts over social media addiction. The operators of TikTok, Snapchat and other apps face hundreds of similar lawsuits of their own.
The case is Eisner v Meta Platforms Inc et al, U.S. District Court, Northern District of California, No. 24-02175.
Reporting by Jonathan Stempel in New York
Editing by Matthew Lewis
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
