Meta Platforms Defeats Shareholder Lawsuit Over Child Safety Claims
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Meta Platforms (META, Financials) and CEO Mark Zuckerberg won the rejection of a lawsuit alleging the business misled investors about its initiatives to guarantee the safety of youngsters using Facebook and Instagram, Reuters reported.
U.S. District Judge Charles Breyer of San Francisco decided on Tuesday that the plaintiff, Matt Eisner, failed to show that claimed poor disclosures in the company's proxy statement caused financial damages to Meta shareholders.
Eisner had intended to annul election results should the conference have already taken place, have Meta and Zuckerberg reimburse legal fees and expenses, and prevent Meta's 2024 annual conference unless the proxy statement was changed.
Breyer had already turned down Eisner's June effort to stop the conference, claiming that Meta's proxy's comments about its dedication to children's safety were aspirational and did not support legal action.
Eisner cannot bring another action on the same grounds because the case was dismissed with prejudice. State attorneys general and individual litigants over its management of child safety and the dangers of social media addiction continue to bring cases against Meta.
META shares are down 2% in Wednesday's pre-market trading on last look, changing hands for $570.34.
This article first appeared on GuruFocus.