Meta Projected $16 Billion in Scam Ad Revenue. Now the Lawsuits Are Piling Up.
April 22, 2026 – 9:14 am
In short: Meta faces a convergence of lawsuits across the US, Australia, and the UK alleging the company knowingly profited from scam ads on Facebook and Instagram. According to internal documents, these fraudulent advertisements generated roughly $16 billion in revenue for the company in 2024, accounting for approximately 10% of Meta’s total advertising income.
The legal actions span various jurisdictions:
- United States
- Australia
- United Kingdom
Collectively, they allege that Meta facilitated fraudulent ads, including deepfake celebrity endorsements, pump-and-dump stock schemes, fake investment platforms, and unauthorised impersonation of financial professionals. Critics argue that Meta’s ad moderation systems were either structurally inadequate or intentionally weakened to protect revenue.
Key Cases:
-
US District Court for the Northern District of California: A significant case was filed in February alleging a pump-and-dump scheme involving Jayud Global Logistics, a Chinese stock listed on Nasdaq. Scammers are said to have acquired 50 million shares at discounted prices and then used Facebook and Instagram ads to drive up the share price before dumping their positions, causing consumer losses exceeding $500 million.
-
Class Action by Scott+Scott: This action claims that Meta allowed scammers to use financial professionals’ names, images, voices, and personas in paid advertisements, leading to client diversion, reputational harm, and regulatory inquiries.
-
US Virgin Islands Attorney General: In December, the Virgin Islands sued Meta in Superior Court, claiming the company “knowingly profited” from scam ads and charged fraudsters extra for advertising, rather than removing them.
The repeated occurrences of these lawsuits across jurisdictions highlight a serious concern about Meta’s handling of fraudulent advertisements on its platforms.