The lawsuit, which seeks to recover $100 million, says Facebook boss Mark Zuckerberg and other company officials knew they were making false statements regarding the safety, security and privacy of its platforms.
Yost said the social media giant’s “scheme” came to light in September in the Wall Street Journal and in October from documents and statements provided by a former Facebook official turned whistleblower, claiming the company “chooses profit over safety.”
The lawsuit claims Facebook controlled its proprietary algorithm to boost its stock and deceive shareholders. It also charges company officials knew they were making false statements regarding the safety, security and privacy of its platforms. Facebook admitted in those internal documents "we are not actually doing what we say we do publicly."
"The magic of free markets doesn't happen if the marketplace is filled with false information," Yost said. "Markets, including the stock market, are the most efficient means of allocating capital. But the rational, free flow of capital by millions of individual decisions is distorted by false information – especially deliberately false information. This lawsuit will serve to protect investors and the market as a whole."
Yost said the social media giant’s “scheme” came to light in September in the Wall Street Journal and in October from documents and statements provided by a former Facebook official turned whistleblower, claiming the company “chooses profit over safety.”
The lawsuit claims Facebook controlled its proprietary algorithm to boost its stock and deceive shareholders. It also charges company officials knew they were making false statements regarding the safety, security and privacy of its platforms. Facebook admitted in those internal documents "we are not actually doing what we say we do publicly."
"The magic of free markets doesn't happen if the marketplace is filled with false information," Yost said. "Markets, including the stock market, are the most efficient means of allocating capital. But the rational, free flow of capital by millions of individual decisions is distorted by false information – especially deliberately false information. This lawsuit will serve to protect investors and the market as a whole."
Ohio takes lead in class action lawsuit against Facebook
Class action lawsuit seeks to recover millions of dollars from social media giant and force reforms to its internal practices.
justthenews.com