Meta destroyed data in Forrest fake-ad case, judge rules

A federal judge in California ruled on August 10 that Meta destroyed or allowed essential data to be erased in Australian billionaire Andrew Forrest's lawsuit over scam cryptocurrency ads that used his image without permission.

Judge P. Casey Pitts found the loss of data harmed Forrest, but did not find that Meta intended to cause harm. He described Meta's conduct as “gross negligence” and said it was “simply not credible” for the company to argue it needed two years to find the data in its own systems.

Forrest, a mining tycoon, accuses Meta of allowing Facebook ads using his likeness to promote bogus cryptocurrency investments. His lawyers argue that Meta's tools reshaped, optimized and personalized the ads before distribution, making the company an active participant in the alleged fraud rather than only an intermediary.

Meta says it is protected by Section 230 of the Communications Decency Act, a 1996 law that shields internet companies from liability for content posted by users. The erased data is central to Forrest's strategy because it would purportedly show how Meta's own systems modified the ads, challenging the company's immunity argument.

The case remains in its preliminary hearing phase. Meta is expected to ask Pitts to throw it out on immunity grounds at a hearing expected by the end of the year.

Forrest's lawsuit says thousands of deceptive Facebook advertisements have used his likeness since 2019 and have drawn thousands of victims.