Ohio Public Employees' Retirement System, Columbus, has filed a securities class-action lawsuit against Meta Platforms Inc. and three executive officers, including Mark Zuckerberg, its founder, chairman and CEO.
The lawsuit, filed Nov. 12 in U.S. District Court in San Francisco against the company formerly known as Facebook, alleges the company has repeatedly misrepresented to investors that its products do not harm children, that the company takes measures to stop the spread of harmful content, and that it applies its standards of behavior equally to all users, according to the court filing.
Ohio PERS has brought the securities class-action lawsuit on behalf of all investors who have acquired shares of Facebook Class A common stock between April 29, 2021, and Oct. 21, 2021.
Saying the matter "arises from an egregious breach of public trust by Facebook," the suit results from Facebook whistleblower Frances Haugen's recent revelations of internal documents showing the defendants "were aware that Facebook's platforms facilitate dissention, illegal activity and violent extremism, and cause significant harm to users, especially children, but Facebook refused to correct these issues," the court filing said.
The lawsuit alleges the disclosure erased more than $100 billion in shareholder value and subjected the company to "immense reputational harm." The lawsuit seeks compensatory damages for "all damages sustained as a result of defendants' wrongdoing, in an amount to be proven at trial."
The other defendants aside from company and Mr. Zuckerberg are David M. Wehner, Meta's chief financial officer, and Nick Clegg, its vice president of global affairs and communications.
Ohio PERS oversees $119.3 billion in assets, including $105.1 billion in defined benefit plan assets. Spokesman Michael Pramik referred questions to the office of Ohio Attorney General Dave Yost. A spokesman in the office could not immediately provide comment.
Officials at Meta Platforms Inc. could not be immediately reached for comment.
