Facebook: A Buckeye for Good Luck or Bad Zuck?

November 17, 2021

Facebook is an excellent example of what happens when a high school science club “we know a lot” mentality. The company has been quite successful. Its advertising is thriving. Its ageing user base shows no reluctance to check out pictures of their grandchildren. Enterprising vendors have found Facebook classifieds an idea way to sell a wide range of products.

The Ohio Attorney General, however, does not see these benefits as material. “Attorney General Yost Sues Facebook for Securities Fraud after Misleading Disclosures, Allegations of Harm to Children.” The write up states:

Zuckerberg and other company officials, the lawsuit maintains, knew that they were making false statements regarding the safety, security and privacy of its platforms. Facebook admitted in those internal documents that “We are not actually doing what we say we do publicly.”

Was their harm? The write up says:

In roughly a month, those revelations caused a devaluation in Facebook’s stock of $54.08 per share, causing OPERS and other Facebook investors to lose more than $100 billion. Yost’s lawsuit not only seeks to recover that lost value but also demands that Facebook make significant reforms to ensure it does not mislead the public about its internal practices.

The case will take time to resolve. Several observations:

Other “funds” may find an idea or two in the Ohio matter. Science club wizards are not comfortable when the non-science club people pile on and try to take their lunch money and their golden apple. Maybe more AG actions?
The focus on money is more compelling than harming Facebook users. Money is the catnip for some, including OPERS-type outfits.
Quoting the Zuck may signal that luck is running out for the pioneer of many interactions.

Net net: Worth monitoring this matter. It may come to nothing. On the other hand it may come to some settlement, just smaller than $100 billion. Jail time? Interesting question.

Stephen E Arnold, November 16, 2021

Written by Stephen E. Arnold · Filed Under Facebook, Government, Legal matters, News

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.