Meta likely to dodge suits over WhatsApp investment scams | Courthouse News Service

A federal judge previously ruled victims of a similar investment scheme lacked standing to sue Meta under the Securities Litigation Uniform Standards Act. SAN FRANCISCO (CN) — A federal judge said Wednesday that jurisdiction issues will likely doom two lawsuits accusing Meta of facilitating investment scams through fraudulent ads. U.S. District Judge William H. Orrick III said he was inclined to dismiss the lawsuits following the dismissal of a similar case, Bouck v. Meta Platforms, Inc. , in which Chief U.S. District Judge Richard Seeborg, a Barack Obama appointee, found the Securities Litigation Uniform Standards Act preempts the plaintiffs’ claims. Meta argued the case amounted to a securities class action brought under state law. Under the 1998 law, federal courts must dismiss certain securities class actions claiming a “misrepresentation or omission of a material fact in connection with the purchase or sale of a covered security.” “I’m inclined to follow his reasoning that SLUSA applies,” Orrick, also an Obama appointee, said. “The ‘in connection with’ element is met — injuries occurred from the devalued stock purchased in the pump-and-dump scheme. From that, I would conclude that I don’t have jurisdiction and I’d dismiss it without prejudice.” The plaintiffs in all
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