A U.S. federal court has sanctioned Meta for failing to preserve key evidence in a lawsuit brought by Australian billionaire Andrew Forrest over scam ads, ABC News reports.

A judge found the company failed to take reasonable steps to retain data, including the final scam ads shown to victims, resulting in prejudice against Forrest.

Forrest, who is suing Meta over fake crypto and investment ads using his likeness, said the ruling gave "a glimmer of hope of correcting a huge injustice inflicted on society." Blake Kagi reports for ABC business (AU).