In a legal saga that refuses to fade, investors in Meta Platforms Inc. are breathing new life into their lawsuit against the tech giant, alleging concealment of the financial fallout from Apple’s privacy modifications. The latest version of the complaint, they argue, addresses the shortcomings that led to a prior dismissal, aiming to resurrect their battle in the courtroom.
Meta Investors Fixed Suit Over Apple Ad Changes: Dismissal Granted, but Investors Fight On
U.S. District Judge Yvonne Gonzalez Rogers had dealt a blow to the investors, granting Meta’s motion to dismiss in July. The court criticized the plaintiffs for their “kitchen sink” approach, encapsulated in a sprawling 113-page complaint. Furthermore, it asserted that the investors failed to convincingly demonstrate the impact of Apple’s iOS changes on Meta’s business during the second and third quarters of 2021.
Meta Investors Fixed Suit Over Apple Ad Changes: A Resurrected Complaint
Undeterred, investors filed a second amended complaint in September, countering Meta’s assertions in November. Meta, in its dismissal motion, maintained it had transparently warned investors about forthcoming challenges, insisting on keeping them informed amid the swiftly evolving landscape.
The Unveiling: Meta’s Admission Triggers Stock Collapse
The crux of the renewed lawsuit revolves around Meta’s revelation on Feb. 2, 2022. The company disclosed that the shift to its short-form video format, “Reels,” generated a disruptive “headwind,” adversely affecting its business. Shockingly, investors learned that this transition would usher in a period of losses, leading to a seismic collapse in Meta’s stock value, the complaint alleged.