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Can Biden sue not Meta but this exact advertiser for defamation? Or would the lawsuit itself be damaging for his reputation?
I personally believe it's more damaging to not go after people for those types of claims in one way or another, assuming you can go after them. A lie that spreads far and wide enough to enough ears will eventually become truth once the majority of the public tout it as truth.
The Streisand Effect is also a concern, though. How many people will be aware of the video if he does nothing vs how many people will be aware of the video if he retaliates. We also know that a significant chunk of the population will believe he's a pedophile regardless of what he does or how a court rules if they know about the video.
The thing about the Streisand effect is that Barbara Streisand actually exists, so the only way for her to succeed was for her to stay out of the media entirely. There also wasn't a whole industry dedicated to making people think about her.
With defamation against Biden, it's foolish to think we can stop lies from spreading just by ignoring them, but what can be done is to debunk them.
Probably. But at the same time if you can shrug it of safely it may be better than being in news arguing that you are not a pedo.