In the US Meta has been sued over a fraudulent cryptocurrency ad published on Facebook involving Australian billionaire Andrew Forrest’s.
The U.S. judge has denied Meta Platforms’ motion to dismiss a lawsuit filed by Australian billionaire Andrew Forrest. His image was illegally used in advertisements promoting fictitious cryptocurrencies and other fraudulent investments.
On June 17, U.S. District Judge Casey Pitts in San Jose, California, ruled that the businessman can prove infringement by Meta as part of its legal obligations. Forrest can also try to prove that not only the organizer of the fraudulent advertising but also Meta Corporation itself, illegally used his identity in obtaining finances.
“Dr. Forrest claims that Meta profited more from ads that included his likeness than it would have if the ads had not,” Pitts wrote. “This is enough to adequately plead that the alleged misappropriation was to Meta’s advantage.”
Meta’s lawyers declined to comment.
Company representatives also argued that Section 230 of the federal Communications Decency Act protects the corporation from liability as a publisher of third-party content.
However, the judge said Forrest’s claims “present a factual dispute regarding whether Meta’s advertising systems were neutral tools that could be used (or misuse) or whether the tools themselves contributed to the content of ads.”
Andrew Forrest noted that between April and November 2023, more than 1,000 fake ads featuring his image were shown on Facebook in Australia, resulting in multiple victims with total damages estimated at several million dollars.
We searched in the spy-service AdWall.io for creatives with Andrew Forrest – he is still actively used:
Forbes magazine estimates that the 62-year-old executive chairman of Fortescue Metals Group (a mining company) has an estimated fortune of $16.5 billion.
Forrest said Pitts’ ruling was the first time a social media company had failed to protect its interests by invoking Section 230 of the U.S. Civil Code.
“This is a crucial strategic victory in the battle to hold Facebook accountable,” the billionaire added.
The Australian tycoon is seeking punitive and compensatory damages from Meta.
It’s worth noting that in April, Australian prosecutors declined to pursue criminal charges against Meta for using fraudulent cryptocurrency ads. However, Forrest filed a lawsuit in the U.S. under Australian laws that allow individuals to prosecute foreign companies with the permission of prosecutors.
More details in the official documents: https://www.bloomberglaw.com/public/desktop/document/ForrestvMetaPlatformsIncNo22cv03699PCP2024BL206922NDCalJune172024?doc_id=X4714FEG000N
