Santa Clara County has filed a fresh suit against Meta, accusing the company of profiting from a sprawling network of scam advertisements that prey on seniors and other vulnerable users. County Counsel Tony LoPresti cites Reuters’ 2023 report, which traced billions of dollars funneled into Facebook and Instagram by fraudsters. The lawsuit marks the first action by a local civil prosecutor against the tech giant.

Meta allegedly earns about $7 billion annually from these scam ads, a figure the filing claims stems from the platform’s failure to curb the malicious ecosystem. The company counters that it removes over 159 million scam ads each year and has launched new safeguards, but critics argue the numbers reveal a systemic problem that benefits criminals more than users.

The suit follows a watchdog report from the Center for Countering Digital Hate that exposed Meta’s $14 million gain from Medicare‑related scams targeting seniors. Those ads, many repeat offenders, used fabricated AI‑generated celebrity endorsements to lure victims. Meta says it partners with law enforcement worldwide to dismantle these schemes, yet the new lawsuit questions the effectiveness of its efforts.

If the court sides with Santa Clara, it could force Meta to overhaul its ad‑review processes and pay substantial penalties, reshaping how the platform monetizes user data. The case underscores a broader industry debate over platform responsibility versus free‑speech concerns. Ultimately, the outcome will dictate whether Meta’s current safeguards are enough to protect vulnerable users.