Facebook Inc. sued the founder of a software company for running deceptive advertisements on its social-media platforms, including links to investment scams and bogus information about the coronavirus pandemic.
Basant Gajjar’s “LeadCloak" software, designed to circumvent automated review systems in Facebook and Instagram, baits users into clicking on links that are unrelated to the ad, according to the lawsuit filed Thursday in California.
Facebook said the software pushed deceptive ads for diet pills and drugs and cryptocurrency investment scams. Gajjar, who was named as a defendant in the Facebook suit, didn’t immediately respond to a request for comment.