Tech

Ohio sues Facebook over kids… and pensions

It is becoming clearer than the name change it has not served Meta to get rid of everything that drags on Facebook, the one that in other times (until three weeks ago) was its epicenter and reason for being, but that suddenly no longer has so much importance (allow me to laugh), after the arrival of the Metaverse. Well, the arrival of the presentation of a plan for the future to build a virtual space that will redefine human relationships and blah blah… well, surely you know the story as well as I do.

There is a theory, and one that seems more and more credible to me (I clarify that it is theory, there is no evidence, it is opinion), which points out that the change of name of Facebook and the announcement of the Metaverse could be due to trying to clean up the image a bit of the company, mainly due to the effect that such a reputational crisis could have on the prices of its securities. And in view of the effect of the announcement, it seems that at least in the short term it was an effective measure:

The lowest point on the graph, of the listing price of Facebook / Meta titles during the last month, corresponds to October 28. Yes, precisely on the day of the announcement of the Metaverse. It seems that the announcement served to reverse the trend. Chart: TradingView

This should not make us lose perspective, be careful, if we review how Facebook titles have performed over the years, we see that the evolution has been spectacular, reason why many mutual funds of various types have invested in the company. Of course, the reputation crisis that is looming, especially if the authorities finally get as hard on the social network as it seems that will happen, we can see how this upward trend is reversed, more or less markedly.

This explains that the Ohio attorney general has filed a lawsuit against Meta, on behalf of the Ohio Public Employees Retirement System. The reason? As we can read in the lawsuit, published by The Verge, it alleges that Facebook misled the public about the effects its products have on children, violating federal securities law. The lawsuit is seeking more than $ 100 billion in damages.

«Facebook said it was taking care of our children and eliminating online trolls, but in reality he was creating misery and division for profit“Said Ohio Attorney General Dave Yost. In a previous statement, he linked his performance to recent revelations, both in relation to the effects of Instagram on children. Something that was even more outrageous, given that Facebook was already preparing an Instagram for children, plans that at least for now have been on hiatus, although not canceled.

The revelations that Facebook knew about this problem and preferred to look the other way, undoubtedly added to the most recent ones on its inaction in the face of misinformation, have penalized the price of the company’s securities, causing investors, among which is the Ohio Public Employees Retirement System, losses of more than $ 100 billion, according to the prosecutor.

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