Wilmington, DE - Attorneys representing Meta, the parent company of Facebook, Instagram, Messenger, and WhatsApp, and its CEO Mark Zuckerberg, have called on a Delaware judge to dismiss a shareholder lawsuit that raises questions about the responsibilities of corporate leaders. The lawsuit, filed by James McRitchie, a corporate governance and shareholder activism advocate, asserts that Meta's directors have prioritized profits at the expense of broader societal and economic interests.

According to McRitchie's complaint, Meta's directors breached their fiduciary duties to the company by focusing solely on maximizing profits and ignoring the potential negative impacts of its products on society and the global economy. As a result, McRitchie argues that Meta shareholders, who also invest in other companies, may experience financial harm due to the detrimental effects of Meta's social media platforms.

The lawsuit points to several issues allegedly caused by Meta's platforms, including mental health problems among young Instagram users, online human trafficking, "vaccine hesitancy," incitements to violence and harassment, misleading or false political ads, and the spread of "election misinformation."

In response, Meta's attorneys argue that the claims made by McRitchie are in conflict with decades of Delaware corporate law and should be dismissed without prejudice. They argue that Delaware law does not mandate directors to consider or protect a shareholder's investments in other companies. While directors have the discretion to consider broader factors beyond their shareholder base, they have no obligation to do so.

Meta attorney James Kramer emphasized that McRitchie's claims are fundamentally contrary to the core principles of Delaware law. The defense further stated that McRitchie's intention with this lawsuit is to test his theories on how he thinks corporations should operate, rather than to legislate.

The judge, who did not provide an immediate ruling, hinted that regardless of his decision, the case is likely to be appealed to Delaware's Supreme Court.

It remains to be seen how the legal battle between Meta and the shareholder advocate will unfold, as the outcome could have significant implications for the corporate governance model of major technology companies like Meta.

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