Rhode Island sues Meta over scam ads after demands from 42 attorneys general
Key Facts
Investing reported that Rhode Island had sued Meta over allegations that it tolerated scam advertisements, amid U.S. legal and regulatory action aimed at protecting users of its platforms. New York's attorney general previously led a bipartisan coalition of 42 attorneys general in June 2025 to demand that the company protect users from fraudulent investment ads, according to a statement from her office. Attorneys general called on the company to implement protocols to address these ads, according to the California attorney general's office. Their demands included banning all investment ads on its platforms if it failed to adopt those measures. Describing how the problem persisted after the company was notified, the Iowa attorney general's office said that "investigators continue to see the advertisements months after reporting them as scams."
In an official warning published in April 2026, the New York attorney general's office outlined how targeting shifts from advertisements to private conversations. The office said that once users click on an ad, they are pressured to move the conversation to WhatsApp or other encrypted platforms such as Telegram. The warning documented a former information technology consultant from New Hyde Park, New York, losing more than $1.3 million. The loss occurred in a stock pump-and-dump scheme, according to the office. The case was included in the office's warning about investment scams linked to Meta advertisements.
In an earlier legal case involving scam advertisements, Santa Clara County sued Meta in the county's Superior Court, Reuters reported. The lawsuit was filed on behalf of all California residents, extending its scope beyond residents of the county that brought it. The county sought restitution for those harmed by the practices at issue in the lawsuit. It also sought civil damages alongside restitution. Its requests included an injunction barring Meta from engaging in unfair business practices, combining financial claims with a request to restrict the practices the county challenged.
In another earlier case against Meta, the Consumer Federation of America requested a jury trial, according to Reuters. The federation sought damages for local consumers in that lawsuit. Meta responded to the federation's allegations by saying, "These allegations misrepresent our work and we will fight them in court." That was the company's position on the federation's lawsuit specifically. In trading, Meta shares closed at $697.52 on October 21, 2026, according to EL7 data.