Meta Platforms, Inc. (formerly Facebook, Inc.)

  • Active

Investigation
10/27/2021

Initial Lawsuit
10/27/2021

Lawsuit Progression
07/26/2022

Investigation

  • Continous Holding
    November 3, 2016 to October 4, 2021
  • Proposed Claim
    Securities Violation

Did Facebook, Inc., now Meta Platforms, Inc., misleading investors regarding its user growth, duplicate accounts, Check/XCheck system, and response to drug cartels, human traffickers and other illegal organizations?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

Facebook Says its Rules Apply to All - WSJ Says it Does Not

09/13/2021

News Outlets

The Wall Street Journal publishes the first article part of the Facebook Files, describing how documents reviewed show that Facebook’s XCheck system “shields millions of VIP users from the company’s normal enforcement process.”

“Some users are “whitelisted”—rendered immune from enforcement actions—while others are allowed to post rule-violating material pending Facebook employee reviews that often never come. At times, the documents show, XCheck has protected public figures whose posts contain harassment or incitement to violence, violations that would typically lead to sanctions for regular users.”

“A 2019 internal review of Facebook’s whitelisting practices, marked attorney-client privileged, found favoritism to those users to be both widespread and “not publicly defensible.”

“We are not actually doing what we say we do publicly,” said the confidential review. . .”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$376.51 $378.69 $-2.18 -0.58%
See more on Factual Timeline

Initial Lawsuit

This securities class action is brought on behalf of all persons or entities that purchased or otherwise acquired shares of Facebook Class A common stock between April 29, 2021 and October 21, 2021, inclusive.

  • Filing Date
    11/12/2021
  • Class Period
    04/29/2021 to 10/21/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Bernstein Litowitz Berger & Grossman LLP
    Office of The Attorney General of the State of Ohio
  • Case Title
    Ohio Public Employees Retirement System v. Meta Platforms, Inc. f/k/a Facebook, Inc. et al
  • Docket Number
    4:21-cv-08812
  • Court
    California Northern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) defendants knew that Facebook’s products and systems are riddled with flaws that sow dissention, facilitate illegal activity and violent extremism, and cause significant harm to users, but Facebook lacked the will or ability to correct these issues.
(ii) defendants also knew that certain of Facebook’s user metrics were unreliable because of the large number of duplicate accounts created by users.

Defendants

  • Company
    Meta Platforms, Inc. f/k/a Facebook, Inc.
  • Chief Executive Officer
    Mark Zuckerberg
  • Chief Financial Officer
    David M. Wehner
  • Vice President
    Nick Clegg

Lawsuit progression

  • Docket Number
    4:21-cv-08812
  • Court
    California Northern District Court

Lead Counsel

07/26/2022

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    Bernstein Litowitz Berger & Grossman LLP
  • Lead Plaintiff
    Mixed Group
  • Free File
    Order for lead
[stockdio-historical-chart symbol=”FB” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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