Meta wins lawsuit dismissal over child safety allegations – report

Meta Platforms (NASDAQ:META) and CEO Mark Zuckerberg won dismissal over a shareholder lawsuit alleging that they misled investors regarding the company’s commitment to child safety on its social media platforms, Facebook and Instagram.

The plaintiff, Matt Eisner, failed to show that Meta’s (META) alleged inadequate disclosures caused economic losses for shareholders, according to a Reuters report.

U.S. District Judge Charles Breyer ruled in favor of Meta (META) and emphasized that federal securities law does not mandate detailed accounts of all the child protection strategies it decided not to adopt. He stated that Meta (META) was not required to detail the severity of sexually explicit content and sexual exploitation of children on its platforms.

“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 stated. “That is not necessary.”

The lawsuit aimed to have Meta (META) and Zuckerberg pay Eisner’s legal fees and costs, prevent Meta (META) from holding its 2024 annual meeting until the proxy statement was changed, and nullify election results if the meeting took place.

Eisner, Meta, and Zuckerberg lawyers did not immediately respond to Reuters request for comment, the report said.

The dismissal was with prejudice, meaning Eisner cannot file the same lawsuit again.

Despite this victory, Meta (META) continues to face numerous lawsuits from various state attorneys general and other parties concerning allegations of social media addiction among children and the associated risks. TikTok and Snapchat (SNAP) apps also face similar lawsuits.