Ohio Attorney General Dave Yost has filed a lawsuit against Facebook for securities fraud, alleging that the social media giant misled the public about the negative effects its products have on the health and well-being of children in an effort to boost its stock and deceive shareholders.
“Facebook said it was looking out for our children and weeding out online trolls, but in reality was creating misery and divisiveness for profit,” Yost said. “We are not people to Mark Zuckerberg, we are the product and we are being used against each other out of greed.”
Mark Zuckerberg Smiles during testimony (Pool/Getty)
The lawsuit — filed on behalf of the Ohio Public Employees Retirement System (OPERS) and the company’s investors — alleges that from April 29 2021 through October 21, 2021, Facebook and its senior executives violated federal securities laws by purposely misleading the public, according to a report by WTRF.
The suit claims Facebook mislead the public about the negative effects its products have on children, as well as about the steps the company has taken to protect the public.
The lawsuit adds that Zuckerberg and other company officials knew they were making false statements about the safety, security, and privacy of its platforms.
Facebook also reportedly admitted in internal documents that “We are not actually doing what we say we do publicly.”
Facebook CEO Mark Zuckerberg is applauded as he delivers the opening keynote introducing new Facebook, Messenger, WhatsApp, and Instagram privacy features at the Facebook F8 Conference at McEnery Convention Center in San Jose, California on April 30, 2019. – Got a crush on another Facebook user? The social network will help you connect, as part of a revamp unveiled Tuesday that aims to foster real-world relationships and make the platform a more intimate place for small groups of friends. (Photo by Amy Osborne / AFP) (Photo credit should read AMY OSBORNE/AFP/Getty Images)
Following those revelations, Facebook experienced a devaluation stock of $54.08 per share, which caused OPERS and other investors to lose more than $100 billion, WTRF reports.
Now, Yost’s lawsuit aims at recovering that lost value, and demands that Facebook make significant changes to ensure the company does not again mislead the public in this manner.
This lawsuit is not Yost’s first action against the social media giant. In May, the Ohio attorney general and 43 other attorneys general sent a letter to Facebook CEO Mark Zuckerberg, urging him to cease the company’s plan to develop a version of Instagram aimed at children under the age of 13.
Facebook, which owns Instagram, planned to launch a pre-teen version of the platform. Zuckerberg defended the move, claiming, “there is clearly a large number of people under the age of 13” who want to use the social media platform, adding, “I think something like this could be quite helpful for a lot of people.”
Through this lawsuit, Yost is also reportedly seeking to reinforce that such improper targeting of children by Facebook will not be tolerated.
The attorney general plans to ask the court to appoint OPERS as the lead plaintiff in his Facebook securities fraud lawsuit.
You can follow Alana Mastrangelo on Facebook and Twitter at @ARmastrangelo, and on Instagram.
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