Facebook Urged to Review 'Fake News' Impact by Activist Fund $FB

Sustainable investment fund Arjuna Capital issued a proposal the firms hope will be approved by the social media company's shareholders urging it to produce a report around the phenomenon

Sustainable investment fund Arjuna Capital and another fund on Thursday issued a proposal the firms hope will be approved by Facebook  (FB) shareholders urging the social media giant to produce a report reviewing the public policy and business issues it faces around the phenomenon of "fake news."

"We want Facebook to explain how many ads or content they are blocking, how much staff do they have evaluating fabricated content claims and how much are they outsourcing to third parties such as Politifact or ABC," said Arjuna Capital managing partner Natasha Lamb.

The proposal is nonbinding, so Facebook doesn't have to respond even if the shareholder vote is substantial. However, a significant vote of shareholders urging Facebook to follow through on the proposal's recommendation could be enough to embarrass the company into issuing a detailed study. At this stage, however, it is possible Facebook will seek to have the Securities and Exchange Commission remove the proposal from consideration. A Facebook spokesman did not return a request for comment. 

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Facebook is fake news!