The US Virgin Islands has initiated a significant legal battle against technology giant Meta Platforms, Inc., the parent company of Facebook and Instagram. The lawsuit, filed in late December 2025, accuses the social media behemoth of profiting from advertisements that promote scams, illegal gambling, and products deemed dangerous, particularly to younger users.
Internal Projections Reveal Billions from Problematic Ads
The core of the legal complaint hinges on a startling internal revelation from within Meta. The lawsuit repeatedly references an investigative report published by Reuters in November 2025. That report uncovered that Meta's own internal projections estimated a substantial portion of its 2024 revenue would originate from questionable advertising.
According to the lawsuit, Meta internally projected that approximately 10% of its total 2024 revenue, equating to roughly $16 billion, would be generated from ads for scams, illegal gambling, and banned products. This figure forms the central pillar of the US Virgin Islands' argument, suggesting the company was not only aware of the scale of such content on its platforms but had financially accounted for it.
Legal Allegations and Public Safety Concerns
The territory's lawsuit alleges that Meta's advertising practices and algorithms have created a public nuisance. It claims the platform's systems actively enable and amplify advertisements that defraud consumers and expose minors to significant dangers. The focus on child safety is a prominent aspect, with the suit arguing that Meta's pursuit of profit has come at the expense of protecting vulnerable users from harmful content and predatory schemes.
The legal action suggests that Meta failed to implement adequate safeguards despite possessing clear internal data about the magnitude and profitability of these harmful ad categories. By building its financial forecasts around this revenue stream, the company is accused of prioritizing earnings over user safety and legal compliance.
Potential Repercussions and Industry Impact
This lawsuit represents another major regulatory and legal challenge for Meta, which continues to face scrutiny globally over its content moderation policies and business practices. The case filed by the US Virgin Islands could have wide-ranging consequences, potentially leading to substantial financial penalties and mandated changes to how the company screens and approves advertisements across its global network.
The filing date of the lawsuit is noted as December 31, 2025. It signals a growing willingness by governmental entities to take direct legal action based on internal corporate documents leaked to or uncovered by the media. The outcome may set a precedent for how other jurisdictions address the complex issue of harmful monetized content on social media platforms, potentially forcing a major shift in the digital advertising ecosystem.
