A federal judge rejected Meta Platforms' bid to dismiss a class-action lawsuit. This decision allows claims that the company overcharged advertisers to proceed.
Iron Tribe Fitness filed the lawsuit alleging Meta’s ad auction system was fundamentally flawed. The complaint claims an internal error resulted in a blended price system instead of the promised second price auction.
This system allegedly led to artificially inflated prices and overbidding. The lawsuit argues Meta’s statements about advertisers paying the minimum amount needed were ambiguous and misleading.