Meta Faces Lawsuit Accusing it of Not Doing Enough to Stop Sex Trafficking and Child Exploitation

Meta Faces Lawsuit Accusing it of Not Doing Enough to Stop Sex Trafficking and Child Exploitation

A recent lawsuit alleges that Mark Zuckerberg, along with other executives and directors of Meta Platforms Inc (META.O), have failed to adequately address sex trafficking and child sexual exploitation on Facebook and Instagram.

The plaintiffs, consisting of various pension and investment funds that hold Meta stock, claim that the company’s leadership and board have neglected their duty to protect both the organization and its shareholders by ignoring “systemic evidence” of criminal activities.

The lawsuit argues that the board’s lack of explanation regarding its efforts to combat these issues implies a conscious decision to allow “Meta’s platforms to promote and facilitate sex/human trafficking.”

Meta Denies Allegations and Defends Efforts

Meta has dismissed the basis of the lawsuit, which was filed in Delaware Chancery Court.

In a statement issued on Tuesday, the company said, “We clearly prohibit human exploitation and child sexual exploitation. The claims in this lawsuit misrepresent our efforts to fight against this kind of activity. Our aim is to stop those who want to exploit others from using our platform.”

In 2019, Zuckerberg, Meta’s billionaire co-founder and CEO, informed Congress that child exploitation represented “one of the most serious threats that we focus on.”

Previous Legal Challenges and Ongoing Issues

The Menlo Park, California-based company has faced long-standing accusations that its platforms foster an environment conducive to sexual misconduct.

In June 2021, the Texas Supreme Court permitted three individuals who encountered their abusers on Facebook to sue the platform, stating that Facebook was not a “lawless no-man’s-land” exempt from liability for human trafficking.

Additionally, Meta is currently confronting hundreds of lawsuits filed by families of teenagers and younger children who claim to have experienced mental health issues due to addiction to Facebook and Instagram.

Some school districts have also initiated legal action regarding this problem.

The present lawsuit is a derivative case, in which shareholders sue officers and directors for alleged breaches of duty.

Any damages awarded would be paid to the company, typically by the officers’ and directors’ insurers, rather than to the shareholders.

The case is Employees’ Retirement System of the State of Rhode Island et al v Zuckerberg et al, Delaware Chancery Court, No. 2023-0304.