Sept 18 (Reuters) – Meta Platforms, Inc. (NASDAQ: META) has successfully fended off a lawsuit that accused the tech giant of defrauding shareholders by hiding the impact of Apple’s privacy updates on its advertising business. The lawsuit, which was dismissed by U.S. District Judge Yvonne Gonzalez Rogers, claimed that Meta concealed how Apple’s (NASDAQ: AAPL) changes to its iOS privacy settings would affect the attractiveness of Facebook and Instagram for advertisers.

The shareholders, led by a group of Israeli insurers and pension funds, argued that Meta’s stock fell 53% in less than a year, erasing over $500 billion in market value, as the effects of the privacy changes became clear. They alleged that Meta misled investors with 17 false or misleading statements made between 2021 and 2022.

However, Judge Rogers ruled in Meta’s favor, stating that there was no evidence to prove that Meta intentionally concealed the risks posed by Apple’s privacy changes. In a 34-page decision, she noted that Meta’s acknowledgment of the $10 billion potential revenue hit in 2022 did not imply that the company’s earlier statements were fraudulent.

The lawsuit also targeted Meta’s former Chief Operating Officer, Sheryl Sandberg, accusing her of using company resources for personal projects, such as her wedding and her bestselling book, Lean In. These claims, which were largely based on press reports, were dismissed as unproven.

Additionally, the shareholders claimed that Meta’s shift to the Reels format—similar to TikTok’s short-form video—harmed revenue because Reels offered fewer ad slots per hour compared to older formats. Judge Rogers found no evidence to support this allegation.

In her ruling, Rogers determined that the plaintiffs did not provide sufficient grounds for claiming violations of federal securities law. The case has been dismissed with prejudice, meaning it cannot be refiled.

The other defendants in the case included Meta CEO Mark Zuckerberg, CFO Susan Li, and her predecessor, David Wehner. Lawyers representing the shareholders have yet to comment, and Meta has not issued a statement regarding the dismissal.

The case was filed under Plumbers and Steamfitters Local 60 Pension Trust v. Meta Platforms Inc et al, U.S. District Court, Northern District of California, No. 22-01470.