Ohio Attorney General sues Meta over ‘Facebook Papers’ revelations

The securities lawsuit, filed on behalf of the Ohio Public Employees Retirement System and other investors, alleges that the company misled the public about its algorithm and the harms of its research. The company itself shows what their app can cause to users. It claimed that Facebook executives turned Meta violated securities laws by making false statements about the “safety, security, and privacy of its platforms” to increase its stock price. Meta (Facebook) shares have fallen about 7% since reporting on Haugen’s statements and internal documents began two months ago, costing investors more than $100 billion, according to the lawsuit.
“[Meta] repeatedly misrepresented to investors and the public that the use of Facebook products was not harmful to children, that the Company took active and effective measures to prevent the spread of harmful content. harm and Facebook applies equal standards of behavior to all users”, litigation allegations.

“Facebook investors recently learned the truth when former Facebook employee Frances Haugen released internal documents showing Respondent was aware that Facebook’s platforms facilitated real estate transactions. dissent, illegal activity, and extremism that are violent and cause significant harm to users,” the lawsuit states. It lists the company, as well as Chief Executive Officer Mark Zuckerberg, Chief Financial Officer David Wehner and Vice President of Global Affairs Nick Clegg as defendants.

“This lawsuit has no merit and we will defend ourselves vigorously,” Meta spokesman Andy Stone said in a statement to CNN Business Monday.

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The Wall Street Journal in September began publishing a series of articles called “Facebook Files” based on internal documents, raising concerns about Instagram’s influence on teenage girls, among other issues. other topic. The report prompted a Senate subcommittee hearing with Facebook head Antigone Davis on global safety. Haugen later testified before a Senate subcommittee, in which she said she believes “Facebook products harm children, divide, and undermine our democracy.”

The internal documents, known as the “Facebook Papers,” were provided by Haugen to the Securities and Exchange Commission and lawmakers. A group of news organizations, including CNN, reviewed the redacted versions received by Congress. The documents provide the best insight into many of Meta’s biggest issues, including its approach to fighting hate speech and misinformation, managing international development, and protecting young users on its foundation.

Last month, another former Facebook employee anonymously filed a complaint against the company to the SEC, with charges similar to Haugen’s.

The Ohio lawsuit, filed Friday, alleges that “these disclosures erased more than $100 billion in shareholder value and left Facebook with reputational damage.”

Meta (Facebook) has repeatedly denied Haugen’s claims, arguing that the documents misrepresent the company’s research and actions.

“At the heart of these stories is the false premise,” a Facebook spokesperson said in a statement to CNN about the Facebook Papers last month. “Yes, we are a business and we make a profit, but where is the idea that we do so for the safety of people or a misunderstanding of our commercial interests.”

After reporting on Facebook Papers, the company announced that it has renamed to Meta, a nod to their ambitious plans to build an immersive internet platform known as the metaverse. It also does changes to its ad targeting practices and how it uses facial recognition software.

However, members of Congress have since called on Zuckerberg to testify about the document’s findings.

Yost’s office said in a statement Monday that his lawsuit “sees not only to restore that lost value, but also requires Facebook to implement significant reforms to ensure it is not misleading to users.” the public about its internal activities.”


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