Facebook Can’t Shake Investor Site’s False Advertising Suit

Facebook Inc. must face a proposed class action alleging it misled advertisers by failing to live up to its promises that display ads would appear to specifically targeted audiences.

A company that runs a communication site for high-end investors may go forward with its claim that Facebook displayed ads to users not in its targeted demographic, the U.S. District Court for the Northern District of California said.

The court denied Facebook’s motion to dismiss the suit filed by IntegrityMessageBoards.com, holding it sufficiently alleged harm under California’s Unfair Competition Law.

Facebook’s argument that it didn’t promise perfect accuracy in delivering ads ...