Activist investor James McRitchie sued Meta on Oct. 3, 2022, alleging that the company’s attempt to maximize returns for investors led it to allow some of its 3.5 billion global users to more easily spread misinformation, promote violence and engage in criminal activities. Those actions have destabilized global markets and hurt Meta investors that own stocks in multiple companies, according to the complaint filed in Delaware, where Meta and more than half of all Fortune 500 companies are incorporated.

Legal experts said the move could be the first time investors have attempted to hold a company responsible for the way its commercial activities have contributed to value destruction in shareholders’ other securities through litigation. The lawsuit named Meta, parent owner of the social media platform Facebook, and its board of directors, including CEO Mark Zuckerberg, as defendants.

Agenda – Lawsuit Brings Scrutiny to Board Compensation at Meta