A US judge has allowed Australian mining magnate Andrew Forrest to proceed with his lawsuit against Meta Platforms.

Forrest is seeking legal action over the company's negligence in allowing scam advertisements on Facebook. 

The ads falsely used Forrest's likeness to promote fraudulent cryptocurrency and investment schemes.

In a ruling this week, US District Judge Casey Pitts in San Jose, California, denied Meta's motion to dismiss the lawsuit. 

Forrest, executive chairman of Fortescue Metals Group and Australia's second-richest person, asserts that Meta's failure to prevent the ads breached its duty to operate in a commercially reasonable manner.

Forrest can also argue that Meta misappropriated his name and likeness, not just the fraudsters who created the ads. 

“Dr Forrest claims that Meta profited more from ads that included his likeness than it would have if the ads had not,” Pitts wrote. 

“This is enough to adequately plead that the alleged misappropriation was to Meta's advantage.”

The Palo Alto-based company contends that Section 230 of the federal Communications Decency Act protected it from liability as a publisher of third-party content. 

However, Judge Pitts highlighted a factual dispute regarding whether Meta's ad systems were merely neutral tools or if they contributed to the content of the ads.

Forrest's legal team claims that over 1,000 scam ads featuring his likeness appeared on Facebook in Australia between April and November 2023, resulting in millions of dollars in losses for victims. 

In a statement, Forrest called the decision a significant milestone, marking the first time a social media company could not invoke Section 230 immunity in a US civil case concerning its advertising operations. 

“This is a crucial strategic victory in the battle to hold Facebook accountable,” he said.

Forrest is seeking compensatory and punitive damages.