Salesforce news concerning a new lawsuit that the company is facing has CRM stock down on Wednesday.
Salesforce (NYSE:CRM) is dealing with a lawsuit that claims the company helped another website with its sex trafficking work. This lawsuit alleges that the company built custom tools for the website Backpage to allow it to better operate.
Backpage was a website that allowed users to make classified listings on it. The page was shut down back in April 2018 by U.S. Authorities due to illegal activities on the website. Almost one year later victims on the website are seeking to take Salesforce to task for its possible involvement in their suffering.
The Salesforce news about the lawsuit notes that it has 50 women behind it. These women are victims of sex trafficking, rape and abuse. None of the women in the lawsuit are named. Instead, they are all referred to as Jane Does.
“The evidence of Salesforce’s liability is overwhelming and the damages that have been caused to the victims and our communities as a result are monumental,” Annie McAdams, the lead attorney for the lawsuit, told CNBC. “It’s simply not enough to say fighting human trafficking is important. Internal policies and procedures have to reflect that commitment.”
Craigslist and Reddit removed personal ad sections from their websites in March 2018 to avoid trouble with online prostitution. These changes were made following the passing of the Fight Online Sex Trafficking Act.
CRM stock was down 3% as of noon Wednesday.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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