Investor files a derivative class-action lawsuit against Facebook, want them to sack CEO Mark Zuckerberg for failing to curtail hate speech
An investor wants Facebook Inc. to sack CEO Mark Zuckerberg for failing to curtail hate speech, employee resentment, and advertisers exodus. Shareholder Natalie Ocegueda has filed a derivative class action lawsuit against Facebook saying that the company failed to deal with racial issues is responsible for the recent exodus of advertisers who have faulted the social network’s attempts to limit hate speech.
The lawsuit accuses Facebook of paying lip service to racial diversity while failing to achieve meaningful progress.
In the lawsuit, Natalie cites as an example of Facebook’s shortcomings its refusal to remove President Donald Trump’s post stating, “When the looting starts, the shooting starts” during the start of the Black Lives Matters protests. The lawsuit also states the resignation this year from the company board of Kenneth Chenault, an African American who ran American Express from 2001 to 2018.
“Facebook’s approach to diversity has been characterized by tokenism: make a small gesture to satisfy appearances, but don’t make any underlying substantial change,” according to the complaint.
The lawsuit also claims Facebook’s failure to address the hate speed led to the exodus of over 100 advertisers from Facebook harming investors. The lawsuit said due to this, Facebook investors lost millions due to the Facebook stock price drop after the companies announced advertising boycott.
Facebook hasn’t reacted to Natalie’s lawsuit. We will keep you updated about the Natalie Ocegueda vs Facebook hearings in California Federal Courthouse.