Meta Platforms and its CEO, Mark Zuckerberg, have successfully dismissed a lawsuit alleging they misled shareholders about child safety on Facebook and Instagram. U.S. District Judge Charles Breyer ruled that the plaintiff, Matt Eisner, failed to prove shareholders suffered economic harm from Meta’s disclosures.
The case revolved around Meta’s proxy statement and whether it adequately addressed concerns about child safety on its platforms. According to Breyer, federal securities law does not require Meta to disclose every detail of its child protection strategies. The court also stated that Meta wasn’t obligated to highlight tools it rejected or failures it encountered.
Eisner’s lawsuit aimed to block Meta from holding its 2024 annual meeting until the proxy statement was updated. It also sought to nullify election results if the meeting occurred. However, Breyer had previously rejected these demands, noting that many of Meta’s statements about child safety were aspirational rather than concrete promises.
Meta continues to face legal challenges regarding child safety and social media addiction. Lawsuits from state attorneys general and hundreds of lawsuits by parents, children, and school districts are still pending. These cases highlight concerns about social media’s impact on children, especially regarding addiction and mental health risks.
Breyer’s decision to dismiss the case with prejudice means Eisner cannot file another lawsuit on the same issue. Meta’s legal battles, however, are far from over, with ongoing lawsuits related to children’s use of social media. Despite these challenges, the company has maintained that it remains committed to improving online safety for young users.
The case, filed under Eisner v. Meta Platforms Inc et al, underscores the growing legal scrutiny tech giants face regarding child protection on social media platforms. While Meta successfully avoided this particular lawsuit, its broader legal battles continue across multiple fronts, reflecting widespread concern over children’s online safety.
Meta’s dismissal of this case marks a significant win, but the company remains under pressure to address issues related to children’s welfare on its platforms. The outcome of the remaining lawsuits could have lasting implications for how social media platforms protect younger users.