A US judge has denied Meta Platforms’ attempt to dismiss a lawsuit filed by Australian billionaire Andrew Forrest. The lawsuit involves scam advertisements on Facebook that falsely depict him promoting fake cryptocurrency and other fraudulent investments.
In a ruling, US District Judge Casey Pitts in San Jose, California, stated that Australia’s second-richest individual could argue that Meta’s failure to prevent these ads breached its obligation to operate responsibly. Additionally, Forrest can claim that Meta misappropriated his name and likeness, not just the fraudsters behind the ads.
“Dr. Forrest asserts that Meta gained more profit from ads using his likeness than it would have without it,” wrote Pitts. “This is sufficient to plead that the alleged misappropriation benefited Meta.”
Meta’s legal representatives declined to comment on the matter.
Meta, headquartered in Palo Alto, California, contended that Section 230 of the federal Communications Decency Act protected it from liability as a publisher of third-party content. However, Judge Pitts indicated that Forrest’s claims “raise a factual dispute regarding whether Meta’s ad systems were neutral tools anyone could use (or misuse) or if the tools themselves contributed to the content of the ads.”
Forrest reported that over 1,000 ads appeared on Facebook in Australia from April to November 2023, causing victims to lose millions of dollars.
At 62, Forrest serves as the executive chairman of Fortescue Metals Group, an iron ore producer, and his family is worth $24.8 billion, according to Forbes.
Forrest stated that Pitts’ decision marks the first time a social media company has been unable to use Section 230 immunity in a US civil case related to its advertising business. “This is a crucial strategic victory in the effort to hold Facebook accountable,” he said.
Forrest is seeking compensatory and punitive damages.
In April, Australian prosecutors decided not to pursue criminal charges against Meta over the scam cryptocurrency ads. Forrest had initiated the lawsuit under Australian laws permitting individuals to prosecute foreign companies criminally, provided they obtain consent from prosecutors.
