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After whistleblower disclosures, Facebook gets sued for $100 billion for misleading investors

Extensively citing documents put out by Frances Haugen, the lawsuit accuses the social media giant of securities fraud.

"Defendants engaged in this misconduct to conceal Facebook’s true condition from the investing public and to support the artificially inflated prices of the Company’s common stock," read the Ohio Employees Retirement System's (OERS) $100 billion class action lawsuit against Meta, formerly called Facebook, filed on November 12 at the US District Court of Northern California. According to the lawsuit, which has been viewed by MediaNama, the OERS accuses Meta of misleading investors and profiting off inflated stock prices, based on disclosures by whistleblower Frances Haugen. The lawsuit, filed on behalf of all Meta shareholders, alleges that the company violated the US Securities Exchange Act in the class period i.e period for which damages are sought between April 29, 2021 and October 21, 2021. This period comes between Facebook's trading day after its first-quarter earnings call and the day WSJ's last story on leaked documents was published. Haugen's disclosures in October drew a lot of attention towards Meta's practices in matters of user safety, integrity investments, etc but primarily for misleading the investors. This is the first instance of the company facing legal actions since Haugen came out with the documents. Key arguments made in the class action suit The lawsuit named Meta CEO Mark Zuckerberg, Chief Financial Officer David M. Wehner, and Global Vice President Nick Clegg and stated that all Facebook employees and their families are exceptions to the class action. While the damages incurred by the shareholders are currently pegged at $100 billion in the lawsuit, the total payout…

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I cover health technology for MediaNama but, really, love all things tech policy. Always willing to chat with a reader! Reach me at anushka@medianama.com

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