Supreme Court Declines Meta's Appeal in Multi-Billion Dollar Advertiser Lawsuit
The U.S. Supreme Court has refused to hear an appeal from Meta Platforms, the parent company of Facebook and Instagram, concerning a major class-action lawsuit filed by advertisers. The lawsuit alleges that Meta significantly inflated the number of potential viewers for ads, leading to overcharges that could total more than $7 billion.
The decision follows a ruling from the 9th U.S. Circuit Court of Appeals, which allowed advertisers to group their claims and pursue damages collectively. The panel's decision emphasized that Meta allegedly provided misleading information regarding its ad reach, focusing on the number of social media accounts rather than the actual number of unique individuals.
The lawsuit is spearheaded by former Meta advertisers, including DZ Reserve and Cain Maxwell, who contend that Meta fraudulently exaggerated the reach of ads by as much as 400%. This class action represents potentially millions of advertisers who have engaged with Meta since August 2014.
In its appeal, Meta argued that different federal appeals courts have previously dismissed similar claims and maintained that some advertisers might not have relied on the contested data at all. Notably, advertising revenue accounts for the vast majority of Meta's income, which reached $116.1 billion in the first nine months of 2024.
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