June 19th 2024.
A judge in the United States has ruled against Meta Platforms' attempt to dismiss a lawsuit brought by Andrew "Twiggy" Forrest, an Australian billionaire and mining tycoon. The lawsuit is centered around fraudulent Facebook advertisements that featured Forrest promoting fake cryptocurrency and other scam investments.
In his decision on Monday, US District Judge Casey Pitts of San Jose, California stated that Forrest, who is Australia's second-richest person, can proceed with trying to prove that Meta's negligence in allowing these ads to run breached their duty to operate in a commercially reasonable manner. The judge also stated that Forrest can attempt to prove that Meta misappropriated his name and likeness, not just the fraudsters behind the deceptive ads.
According to Pitts, "Dr. Forrest claims that Meta profited more from ads that included his likeness than it would have if the ads had not". This, he believes, is sufficient evidence to suggest that the misappropriation of Forrest's image benefited Meta in some way.
Lawyers for Meta declined to comment on the ruling on Tuesday. The company, based in Palo Alto, California, had argued that Section 230 of the federal Communications Decency Act protects them from liability as a publisher of third-party content.
However, the judge noted that Forrest's claims pose a "factual dispute" as to whether Meta's ad systems were merely neutral tools that anyone could use, or if they played a role in shaping the content of the ads.
Forrest alleges that over 1000 of these fraudulent ads appeared on Facebook in Australia between April and November 2023, resulting in millions of dollars in losses for victims. The 62-year-old is the executive chairman of Fortescue Metals Group, a major iron ore producer, and is worth $24.8 billion with his family, according to Forbes magazine.
In a statement, Forrest hailed Pitts' decision as a "crucial strategic victory" in the fight to hold Facebook accountable. He is seeking both compensatory and punitive damages.
This is not the first time Forrest has taken legal action against Meta over these scam ads. In April, Australian prosecutors declined to pursue criminal charges brought by Forrest against the social media giant in that country. Forrest had filed under Australian laws that allow individuals to prosecute foreign companies with the consent of prosecutors.
The case, which is being heard in the US District Court for the Northern District of California, is Forrest v Facebook Inc et al, No. 22-03699. To stay updated on the latest breaking news, celebrity updates, and sports news, follow our WhatsApp channel. We promise no comments, algorithms, or sharing of your private information.
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