Facebook whistleblowers filed an SEC complaint alleging that the company did not notify proper authorities about illegal activity on both Facebook and Instagram, including the sale of illegal drugs and auctions of pornographic images of children.
The complaint included dozens of screenshots of the illegal materials, and said that some were sold under very obvious hashtags, like #buydrugsonline. The complaint also said that material would disappear when it was pointed out but would reappear later.
Facebook also allegedly lobbied other companies like Twitter not to participate in programs to remove illegal OxyContin postings from platforms, the complaint said.
The complaint argues that Facebook did not comply with its fiduciary duty when it did not notify investors about the illegal sales.
In response, Facebook said that it has “regularly disclosed potential risks related to content in our SEC filings, including at least four times in the last year.”
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