Santa Clara County filed a lawsuit accusing Meta of profiting from scam ads on Facebook and Instagram and violating California false advertising laws.

The complaint seeks restitution, civil damages, and an injunction to permanently halt Meta’s allegedly harmful practices.

Meta says it removed more than 159 million scam ads last year, has rolled out new anti-scam tools, collaborates with law enforcement, and intends to vigorously fight the lawsuit.

The county’s response to Reuters includes noting that it hired three law firms to pursue the case, while final decisions lie with the county.

The county accuses Meta of tolerating scam activity and obstructing anti-scam efforts to hit financial targets, while Meta denies the charges and says it aggressively fights fraud.

Leaked internal documents cited in coverage suggest Meta earned nearly $7 billion annually from scam ads as of 2025, with the lawsuit alleging Meta used AI and targeting to connect vulnerable users with fraudulent ads.