TLDR
- META slips as judge lets child privacy claims move ahead in court
- States win key ruling over Meta’s child privacy and design practices
- Meta faces renewed pressure as Facebook and Instagram claims proceed
- Judge backs states on Meta child privacy notice and consent claims
- META stabilizes near $561 after court ruling raises legal pressure
Meta Platforms stock slipped on Tuesday after a federal judge allowed major state claims against the company to proceed. META traded at $561.23, down 0.24%, after recovering from a late-morning selloff. The case adds legal pressure as Meta faces claims over child privacy and social media design.
Meta Stock Slips After Court Ruling
Meta shares moved lower after the Oakland court rejected the company’s dismissal bid. The stock fell sharply late in the morning but later stabilized near the $561 level. However, the ruling kept legal risk in focus for the Facebook and Instagram parent.
The lawsuit came from 29 U.S. state attorneys general. They accused Meta of designing Facebook and Instagram to addict children and hiding related harms. The claims include deception, unfair practices, and child privacy law violations.
U.S. District Judge Yvonne Gonzalez Rogers allowed several claims to move forward. She also found that Meta failed to meet notice and parental consent rules. Therefore, the states gained a key win under the federal child privacy law.
States Press Claims Over Child Privacy
The states said Meta knew its platforms could harm younger users. They linked Facebook and Instagram use to anxiety, depression, poor sleep, and school disruption. They also raised concerns about self-harm and other serious effects.
Meta denied the claims and said it supports young people on its platforms. The company argued that the states lacked evidence of consumer deception. It also said social media addiction does not qualify as an established psychiatric condition.
The company also disputed the privacy law claims. Meta said Facebook and Instagram serve a general audience, not only children under 13. The judge found factual disputes over whether Meta partly directed the platforms at children.
Trial Date Adds Pressure on META
The court ruling does not decide whether Meta caused the alleged harms. Instead, it allows a jury to examine key disputes. Those issues include platform design, public statements and child-focused practices.
The case forms part of wider litigation over social media and youth safety. More than 2,600 individuals, schools, and local governments have filed related claims. Those cases also involve platforms tied to Google, YouTube, Snapchat, and TikTok.
A trial involving California, Colorado, Kentucky and New Jersey claims is scheduled for August 18. The outcome could shape future rules for social media companies. For now, META remains under pressure as legal scrutiny grows around child privacy and platform design.
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