Meta has filed a lawsuit against Joy Timeline HK, the creator of the AI nudify app Crush AI, for running thousands of ads on its platforms without adhering to the ad review process.

This legal action underscores the urgency of addressing the proliferation of AI-generated sexual images, which pose significant risks of sextortion, blackmail, and privacy violations.

Meta emphasized its commitment to protecting users from abuse and indicated that it will take necessary legal actions against violators of its advertising policies.

Despite strong revenue growth, Meta faces challenges including regulatory scrutiny in the EU and rising costs related to infrastructure and hardware.

In response to global criticism regarding its protection measures for teenagers, Meta is enhancing its efforts to combat exploitative apps that have reached children.

The rise of generative AI has led to an increase in nudifying apps, prompting calls for legislation to ban them, particularly from the children's commission for England.

To combat these challenges, Meta and TikTok have banned keyword searches for AI nudify apps, although enforcement remains a significant hurdle.

Meta is collaborating with an industry coalition to share information on nudifying apps, aiming to combat child sexual exploitation online.

Since the beginning of 2025, Meta has disrupted four networks promoting AI nudify services, employing tactics traditionally used against bad actors.

Meta has acknowledged that it struggles to enforce its ad policies, reporting a loss of $289,000 due to investigation and enforcement efforts related to Crush AI.

Analysts project a one-year average target price of $707.86 for Meta's stock, indicating a potential upside from its current price, amidst ongoing scrutiny and challenges.

The lawsuit comes in the wake of increased scrutiny on tech platforms to manage non-consensual explicit content, following the enactment of the Take It Down Act.