Meta has been sued by Santa Clara County, California, over allegations that it knowingly allowed scam advertisements to proliferate across Facebook and Instagram, according to a report by Bloomberg.

The lawsuit accused Meta of facilitating and profiting from billions of scam advertisements targeting seniors and families through fraudulent financial products, cryptocurrency schemes, fake health cures, ineffective supplements and celebrity impersonation scams.

Santa Clara County counsel Tony LoPresti alleged that Meta earns about $7 billion annually from scam-related advertisements and is seeking civil penalties, restitution, and court orders to stop the alleged practices, Bloomberg reported.

In response, a Meta spokesperson rejected the allegations and defended the company’s anti-scam efforts.

“We aggressively fight scams on and off our platforms because they’re not good for us or the people and businesses that rely on our services,” the spokesperson said.

Meta also said the lawsuit relied on a Reuters report that “distorts our motives and ignores the full range of actions we take to combat scams every day,” adding that the company removed more than 159 million scam advertisements in 2025.

Bloomberg reported that Meta, which generated over $200 billion in sales last year, plans to fight the lawsuit. The company’s headquarters are located in neighboring San Mateo County, while many of its employees, including chief executive officer Mark Zuckerberg, reside in Santa Clara County.