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Federal Judge Rules Meta Hid Evidence in Australian Billionaire's Fake ad Case: "Gross Negligence"

The judge said Meta’s loss of data prejudiced Andrew Forrest’s case and could weaken the company’s Section 230 immunity defense.

  • On Monday, a federal judge in California ruled against Meta for destroying evidence in a lawsuit brought by Australian billionaire Andrew Forrest over scam ads using his likeness without permission.
  • Forrest alleges Meta allows ads using his image to promote fraudulent cryptocurrency investments, with his legal team arguing the company's artificial intelligence tools optimize these ads, making Meta an active participant rather than a mere intermediary.
  • Judge Casey Pitts rejected Meta's claim that it needed two years to locate the data as "simply not credible," characterizing the company's failure to preserve records as "gross negligence."
  • The ruling prevents Meta from using missing evidence as a shield, which Forrest said ensures the company cannot "outrun responsibility," and the court ordered Meta to pay Forrest's legal fees and costs.
  • While Meta maintains it is protected by the Communications Decency Act, juries in Los Angeles and Santa Fe, New Mexico, recently found the company liable for harming minors, complicating its immunity defense.
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Meta can still try to get the case dismissed on the grounds that her immunity is still in force.

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A California federal judge sanctioned Meta on Monday for destroying evidence in a case driven by Australian billionaire Andrew Forrest. The lawsuit claims that Meta allowed fraudulent ads to use its image to promote false investments in cryptocurrencies. Establishing Meta's responsibility for the disappearance of such evidence is fundamental to the strategy of the renowned mining tycoon.

·Rio de Janeiro, Brazil
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Australian Financial Review broke the news in Sydney, Australia on Tuesday, August 11, 2026.
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