A new class action lawsuit filed in February 2026 accuses Meta Platforms — the parent company of Facebook, Instagram, and WhatsApp — of knowingly allowing scammers to run fraudulent stock promotion ads on its platforms, costing investors hundreds of millions of dollars.
Status: Newly Filed | No Settlement Yet
What Is the Lawsuit About?
The complaint, filed on February 5, 2026 in federal court in New Jersey, centers on a stock manipulation scheme known as a pump-and-dump. In this type of scam, fraudsters buy large quantities of a low-priced stock, use advertising and social media to hype the stock and drive up its price, then sell their shares at the peak — leaving ordinary investors holding worthless stock when the price crashes.
The lawsuit specifically points to a scheme involving Jayud Global Logistics (traded on NASDAQ under the ticker JYD) in April 2025. According to the complaint, scammers purchased roughly 50 million shares at discounted prices, ran paid advertisements across Facebook, Instagram, and WhatsApp to drive the share price up to nearly $8, and then dumped their holdings. The plaintiffs estimate the scheme caused more than $500 million in investor losses.
What Is Meta Accused Of?
The lawsuit does not allege that Meta itself ran the scam. Instead, it claims Meta profited from enabling it by accepting payment for ads it knew or should have known were fraudulent. The key allegations include:
- Meta lacks adequate screening tools to catch obviously fraudulent stock promotion ads before they run
- The company’s own artificial intelligence systems have made the problem worse by helping scammers target vulnerable users more effectively
- Meta uses its vast trove of personal data to help advertisers — including scammers — reach specific audiences based on age, income, investment interests, and other factors
- Scam ads frequently use unauthorized images of celebrities and public figures to appear legitimate, and Meta does not consistently flag or remove them
- While Meta has written policies against deceptive advertising, the lawsuit claims the company does not meaningfully enforce them because scam ads generate revenue
Who Is Affected?
The proposed class includes individuals who purchased shares of JYD stock between March 21 and April 2, 2025, and lost money as a result of the alleged pump-and-dump scheme promoted through Meta’s advertising platforms.
What Happens Next?
The case is in its earliest stages. Meta has not yet filed a formal response, and no settlement discussions have been reported. Cases like this typically take years to work through the courts, and there is no guarantee of a payout for affected investors at this point.
If you believe you lost money on JYD stock due to misleading social media ads, you may want to consult with a securities attorney to understand your options. We will update this page as the case develops.
Case Details
| Case Name | Irving et al. v. Meta Platforms Inc. |
| Case Number | 3:26-cv-01127 |
| Court | U.S. District Court, District of New Jersey |
| Date Filed | February 5, 2026 |
| Status | Early litigation — no settlement |
By Steve Levine | Published: February 17, 2026
Legal Disclaimer
This article is for informational purposes only and does not constitute legal or investment advice. If you believe you were affected, consult with a qualified securities attorney. OpenClassActions.org is a consumer news site and is not a law firm.