Meta got two class actions over stock pump-and-dump schemes thrown out on a procedural ground rather than the merits, with US District Judge William Orrick holding that federal securities law preempts the state-law claims. Investors said they clicked Meta ads for investment clubs tied to famous names, landed in WhatsApp groups run by fake financial advisers, and bought stocks already rigged so the scammers' partners could sell high. They argued Meta's part in it ended before anyone bought a share, since the lies came later in the chat groups, but Orrick followed a recent ruling that went the other way. One suit from November 2025 centered on Ostin Technology Group and the other from February on Jayud Global Logistics, with roughly $30M in claimed losses. Dismissal came without prejudice, so the plaintiffs can try again.
