Meta Platforms and Chief Executive Mark Zuckerberg won the dismissal of a lawsuit claiming they misled shareholders in Meta’s proxy statement about their ability to ensure the safety of children who use Facebook and Instagram.
TakeAway Points:
- A lawsuit alleging that Meta Platforms and CEO Mark Zuckerberg misled shareholders about their capacity to protect youngsters using Facebook and Instagram was dismissed.
- U.S. District Judge Charles Breyer in San Francisco said plaintiff Matt Eisner failed to show that shareholders suffered economic losses from Meta’s alleged inadequate disclosures.
- The lawsuit sought to block Meta from holding its 2024 annual meeting until the proxy statement was amended, void election results if the meeting were held, and have Meta and Zuckerberg cover Eisner’s legal fees and costs.
- Qualcomm rolled out two new chips, one called Snapdragon Cockpit Elite to power dashboards and another called Snapdragon Ride Elite for self-driving features.
Shareholders lawsuit dismissed
A lawsuit alleging that Meta Platforms and CEO Mark Zuckerberg deceived shareholders about their capacity to protect youngsters using Facebook and Instagram was dismissed following the company’s proxy statement.
In a decision on Tuesday, U.S. District Judge Charles Breyer in San Francisco said plaintiff Matt Eisner failed to show that shareholders suffered economic losses from Meta’s alleged inadequate disclosures.
He also said federal securities law did not require Meta to detail the severity of sexually explicit content and sexual exploitation of children on its platforms, or all the child protection strategies it decided not to adopt.
“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, that is not necessary.” Breyer wrote.
Eisner’s lawyers did not immediately respond to requests for comment. Lawyers for Meta and Zuckerberg did not immediately respond to similar requests.
The lawsuit pursuit
The lawsuit sought to block Meta from holding its 2024 annual meeting until the proxy statement was amended, void election results if the meeting were held, and have Meta and Zuckerberg cover Eisner’s legal fees and costs.
Breyer had in June refused to enjoin the meeting, saying many of Meta’s assurances in the proxy statement that it was committed to children’s safety were simply “aspirational” and did not justify the lawsuit.
Tuesday’s dismissal was with prejudice, meaning Eisner cannot sue Meta and Zuckerberg again.
Meta still faces lawsuits by dozens of state attorneys general accusing the Menlo Park, California-based company of addicting children to its apps while downplaying the risks.
It also faces hundreds of lawsuits by children, their parents, and school districts over social media addiction. The operators of TikTok, Snapchat and other apps face hundreds of similar lawsuits of their own.
The case is Eisner v Meta Platforms Inc et al, U.S. District Court, Northern District of California, No. 24-02175.
Qualcomm releases new chips
Qualcomm on Tuesday also rolled out two new chips, one called Snapdragon Cockpit Elite to power dashboards and another called Snapdragon Ride Elite for self-driving features. The company said Mercedes-Benz Group plans to use the Snapdragon Elite Cockpit chip in future vehicles, though the two companies did not specify when or in which vehicles the chip will appear.
