Santa Clara County sues Meta over fraudulent ad revenue
Santa Clara County filed a lawsuit alleging Meta earned billions from scam ads while prioritizing profits over enforcement. Meta plans to defend the claims.
META PLATFORMS INC-CLASS A faces a lawsuit from Santa Clara County alleging the company generated $7 billion in annual revenue from fraudulent advertisements. Filed Monday in Santa Clara County Superior Court on behalf of all California residents, the complaint claims Facebook and Instagram violated California consumer protection laws by profiting from high-risk scams. The case could force changes to Meta's global ad-targeting systems.
### Allegations and Evidence The lawsuit alleges Meta established internal guardrails to prevent scam-reduction efforts from impacting company profits. According to leaked documents cited in the filing, Meta prioritized revenue over removing ads that showed clear signs of fraud. Santa Clara County Counsel Tony LoPresti told Reuters that the scale of misconduct has reached an extraordinary level.
