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Facebook sued for allegedly over-estimating potential reach of ads

By Jenie Mallari-Torres | Oct 31, 2018

SAN FRANCISCO — Individuals have filed a class-action lawsuit against Facebook Inc. and Does 1-25, citing alleged breach of contract and negligent misrepresentation.

Holly Dean and Lauren Meyers filed a complaint on behalf of individually and all others similarly situated on Oct. 18, in the U.S. District Court for the Northern District of California, against the defendants alleging that they breached a duty of good faith and fair dealings.

The plaintiffs allege that, Holly Dean and Lauren Meyers and other similarly situated have purchased advertisement on defendants' social media network. They allege the defendants misled advertisers or potential advertisers by inflating the actual potential reach and estimated reach of advertisements. 

As a matter of fact, defendants' misrepresentations were far from realistic that plaintiffs' advertisement routinely fails to meet even the lower end of the estimate, according to court documents. 

The plaintiffs hold Facebook Inc. and Does 1-25 responsible because the defendants allegedly created a formula that over-inflates or estimates the potential reach and estimated reach in reckless disregard for the truth or accuracy of advertised data, in an attempt to induce advertisers to purchase advertisements.

The plaintiffs request a trial by jury and seek judgment against defendants, certify class action, compensatory and punitive damages, pre-judgment interest, restitution, injunctive relief, attorneys’ fees, expenses and costs of suit. They are represented by Reuben D. Nathan of Nathan & Associates in Newport Beach.

U.S. District Court for the Northern District of California Case number 18-cv-06391

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