Meta Faces Class Suit Over Chinese Penny Stock Manipulation

Meta Platforms Inc. facilitated and failed to stop a Chinese penny stock manipulation scheme that utilized its advertising tools, according to a new class action lawsuit Friday in federal court.

A group of investors claim they lost roughly $3 million and, in their complaint filed Friday at the US District Court for the Northern District of California, say Meta aided and abetted fraud, breached its user contract, unjustly enriched itself, was negligent, and violated California’s human rights law.

They also estimate that more than $300 million was lost by the proposed class in the scheme.

“Meta’s advertising tools and its ...