(CNBC) Ohio Attorney General Dave Yost has filed a class action suit against Facebook after its investors said they lost $100 billion due to stock slump over falsified statements on company products.
The suit, on behalf of the company’s investors and the Ohio public pension fund, states that Facebook found that its photo-sharing service on the Instagram app harmed one in three teenage girls.
A former Facebook staff Frances Haugen presented documents to Congress, journalists, and the Securities and Exchange Commission showing the mental health impacts of Instagram’s photo-sharing service.
Facebook says the allegations raised in documents presented by Haugen are misinterpreted. The company has termed the lawsuit as “without merit.”
Yost wants Facebook to change its practices to avoid misleading the public. The attorney was among others who compelled Facebook to stop introducing Instagram for kids.
The US Federal Trade Commission is also pursuing a related case against Facebook.
FB: NASDAQ is down -0.12% on premarket.
