Attorneys for Meta Platforms and several of its current and former leaders, including founder Mark Zuckerberg, are facing a shareholder lawsuit alleging that the company has deliberately failed to protect users of its social media platforms from human trafficking and child sexual exploitation. The lawsuit, filed by several investment funds, claims that Meta's directors and senior executives have long known about rampant human trafficking and child sexual exploitation on Facebook and Instagram but have failed to address the predatory behavior.

During a hearing on the matter, plaintiffs' attorney Christine Mackintosh argued that Meta's directors have known about pedophiles and traffickers using the platforms for their activities but have failed to implement proper oversight and controls to stop them. David Ross, an attorney for Meta, countered by stating that the lawsuit should be dismissed as it has not resulted in Meta suffering "corporate trauma" as required by Delaware law. Meta also argues that the claims are speculative and that the plaintiffs failed to demand action from the board before filing the lawsuit.

Furthermore, another lawsuit has been filed by James McRitchie, who alleges that Meta's directors have prioritized profits over societal and economic interests, leading to negative effects on society and the global economy. McRitchie's complaint blames Meta's social media platforms for various issues, including mental health problems, online human trafficking, and election misinformation. Attorneys for Meta argue that McRitchie's claims go against decades of Delaware corporate law and should be dismissed.

Vice Chancellor J. Travis Laster, who presided over the hearing, noted that there has been debate on whether Delaware's law regarding director oversight can be applied to business risks, not just legal compliance. He stated that failing to address a massive child porn problem could be a trigger for liability under Delaware law. Laster will rule on the matter at a later date, as both lawsuits continue to raise important questions about corporate governance and accountability.