Meta Faces Class Action: Supreme Court Declines Appeal

The U.S. Supreme Court refused to hear Meta Platforms' appeal, allowing a class action from advertisers accusing the company of ad reach inflation to proceed. Led by former advertisers, the plaintiffs claim Meta's misrepresentations could result in over $7 billion in damages. The controversy hinges on the 'common course of conduct' test.

The U.S. Supreme Court has declined to review Meta Platforms' attempt to dismiss a multi-billion dollar class action lawsuit. The suit was filed by advertisers alleging that Meta, the parent company of Facebook and Instagram, inflated its ad reach metrics, resulting in overcharges. This decision allows the case to proceed.

The class action is spearheaded by former advertisers DZ Reserve and Cain Maxwell, who accuse Meta of fraudulently overstating potential viewers by as much as 400%. They argue this misrepresentation led many to overpay for ads, claiming potentially $7 billion in damages is at stake.

Meta contested the 'common course of conduct' argument, which facilitated class certification. The company noted that other federal appeals courts have rejected this test, arguing that not all advertisers were misled or impacted similarly. Nevertheless, the 9th Circuit Court's decision stands, allowing advertisers to pursue damages collectively.

(With inputs from agencies.)