A class action lawsuit that challenged the ban on cryptocurrency ads by Meta (formerly known as Facebook) and Google has been dismissed by the Federal Court of Australia. The tech giants implemented measures in 2018 and 2019 to prohibit or restrict advertising related to the crypto industry. The lawsuit, filed in August 2020 by solicitor Andrew Hamilton from Israel, accused Meta and Google of anti-competitive behavior and forming a cartel.
The lawsuit claimed that the ad ban had a negative impact on anyone marketing products and services related to 33 different cryptocurrencies, including Bitcoin and Ethereum. It was alleged that the ban caused a drop of hundreds of billions of dollars in crypto markets. However, on September 29, Justice Elizabeth Cheeseman ruled in favor of Meta and Google and shut down the class action.
The judge agreed with Meta and Google’s argument that Andrew Hamilton had a conflict of interest in the case. Hamilton was not only the applicant in the lawsuit but also the sole shareholder and chief executive of JPB Liberty, the firm providing financial backing for the case. Around 650 individuals and businesses, referred to as group members, had purchased “Sue Facebook Tokens” from JPB in order to be part of the lawsuit. Any compensation received would have been shared between Hamilton, the group members, and JPB.
Due to this conflict of interest, Justice Cheeseman concluded that Hamilton had conflicting interests and could not fairly represent those he was supposed to represent. The judge wrote that Hamilton’s financial interest in the litigation exceeded his own claim for relief in the proceeding and that his conflicts of interest could not be appropriately managed.
However, the dismissal of this class action does not prevent similar claims from being brought against Meta and Google in the future, as long as no conflicts of interest are present. Andrew Hamilton is involved in various crypto-related businesses, including the Israel-based crypto mining firm Green Freedom Limited, the crypto consulting business Grant Hamilton Crypto Advisory, and investments in STEEM cryptocurrency.