Meta Sued by Investors regarding iOS Privacy Update

Meta Sued by Investors regarding iOS Privacy Update

Meta was sued by investors for not being transparent about losses due to the iOS privacy update

Meta Facebook was sued by investors for allegedly lying about advertising losses caused by privacy changes on iOS. To investors, Meta said it could overcome the losses due to Apple’s privacy changes.

This lie is said to be perpetrated by Meta to appease investors over the declining revenue from the company’s advertising business.

Meta said in February that adjustments to iOS privacy would result in a $10 billion shortfall in ad revenue this year.

Quoting Gizchina, Thursday (10/3/2022), The Plumbers and Steamfitters Local 60 Pension Trust as Meta investors said in a lawsuit in San Francisco federal court that Meta executives failed to notify shareholders about last year’s earnings report.

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This class action lawsuit also claims that Meta did not provide sufficient information to investors. The company did not state any efforts to deal with the financial hit caused by Apple’s privacy changes.

“Instead of being transparent to investors, the defendants presented a false and misleading image that Meta had taken mitigation actions to offset the impact of iOS privacy changes and the rebuilding of the company’s advertising business model,” said Meta investors.

Until now, Meta has not issued an official statement regarding the lawsuit from the investors.

For your information, this lawsuit comes after Meta struggled with privacy changes to iOS introduced in 2021.

Apple’s privacy update requires app makers to obtain user consent regarding tracking for ads.

This privacy change is said to have hit the Meta business, which relies heavily on collecting user data to sell targeted ads.

Meta has also criticized Apple for the change. The company, led by Mark Zuckerberg, previously warned investors that Apple’s decision would reduce their advertising revenue.

However, investors accused Meta executives of not being transparent in providing information about their plans. In its earnings report, Meta had to face the harsh reality of a 27 percent drop in share prices, which had never happened in previous years.

“Meta’s actions and omissions led to a decline in shares which resulted in significant losses and losses to shareholders,” the plaintiffs said in their complaint.$/1

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