According to a proposed class action, Facebook parent company Meta is accused of lying in order to appease investors that the impact of Apple’s iOS system privacy changes “is controllable”, but then said in February. The adjustments are expected to cost the company $10 billion in lost ad revenue this year.
The Plumbers and Steamfitters Local 60 Pension Trust said in a securities lawsuit filed Tuesday in federal court in San Francisco that Meta executives failed to notify shareholders on last year’s earnings call that the company The company’s efforts to offset any financial hit from Apple’s privacy tweaks have not worked.
Instead of being transparent to investors, the defendants painted a false and misleading picture alleging that Meta had mitigating measures to offset the impact of the iOS privacy changes and rebuilding of the advertising business model, the trust said. Meta has yet to comment.