Rhode Island attorney general sues Meta over scam advertising

Rhode Island's attorney general has filed a lawsuit accusing Meta of failing to stop scam ads on Facebook, Instagram and WhatsApp and of profiting from them, including through its AI-driven ad tools. The complaint leans on a Reuters investigation that cites leaked internal figures suggesting roughly 10% of Meta's 2024 revenue, about $16 billion, came from scam and banned-goods advertising. Meta disputes the allegations and points to its removal of 159 million scam ads in 2025. For long-horizon holders, the case adds to regulatory and legal exposure around the ad business rather than changing reported results.

1. Rhode Island Attorney General Peter Neronha sued Meta, alleging it failed to prevent scam advertisements and knowingly assisted in creating and targeting them.
2. The complaint cites a Reuters investigation and leaked documents indicating about 10% of Meta's 2024 revenue, roughly $16 billion, came from scam and illegal goods advertising.
3. Reuters reported Meta banned advertisers only when automated systems were 95% certain an ad was a scam; lower-certainty accounts were charged higher ad rates instead.
4. Meta disputes the allegations and says it removed 159 million scam ads and 10.9 million linked accounts in 2025.
5. Forbes article dated November 1, 2026.