“They should have known” - I suspect the argument will be similar to patent law in that “if anyone at the company knew, the company itself knew knew”, coupled with the news of the insolvency, etc being posted on facebook.

The argument that they shouldn’t have to vet ads is clearly nonsense: if you are selling ad space you are required to adhere to advertising standards. In this state at least it sounds like those standards include not selling ads to companies in extreme financial distress. The fact that FB is trying to lower costs for ads by not following the law is kind of irrelevant.