Lawsuit alleges that Meta profited from scam impersonation ads on social media platforms, including Facebook, Instagram and WhatsApp
SAN DIEGO — Scott+Scott, along with co-counsel, this week filed a class action lawsuit against Meta, Instagram and WhatsApp on behalf of two financial professionals, alleging that the social media giants violated state and federal law by allowing scam impersonation advertisement on their platforms.
According to the complaint filed in the United States District Court of the Northern District of California, San Jose Division, Meta allowed fake impersonation ads on its platforms that “were designed to and caused consumer confusion, diverted prospective clients, damaged goodwill, as well as exposed class members to reputational harm, regulatory inquiries, and lost business opportunities.“
The lawsuit alleges that these ads deceptively suggested that the impersonated professionals endorsed specific thinly traded, China-based securities and then routed users via links or “send message” buttons into WhatsApp investment groups administered by the scammers, where additional misrepresentations and pressure tactics induced victims to buy the promoted stocks.
“Our complaint demonstrates that Meta’s ad policies allowing for rampant impersonation scams have inflicted concrete and continuing harm on plaintiffs and class members—licensed financial professionals whose livelihoods depend on credibility, candor, and client trust. It’s now time for accountability and systemic reform.” said Scott+Scott Partner John Jasnoch.
“This lawsuit is another example of our plaintiffs’ personal data and even likeness being fraudulently misused by Meta and its subsidiaries causing them severe personal and reputational harm as well as lost business opportunities,” Managing Partner David Scott added.
A bipartisan coalition of state attorneys general publicly warned Meta in June that paid impersonation ads and WhatsApp investment groups were being used to perpetrate widespread fraud against U.S. consumers, but Meta allowed materially identical impersonation ads and funnels to proliferate.
The case is: Suddeth v. Meta Platforms Inc., No. 5:25-cv-08581 (N.D. Cal.) and the Scott+Scott team includes San Diego-based Partner John Jasnoch and Associate Mollie Chadwick as well as New York-based Partner Sean Masson. The complaint was filed with GradyLaw as co-counsel.