Double Blow for Meta as Shares Stumble Following Legal Setback
Social media giant Meta has been found liable by a Los Angeles jury in a landmark case regarding the impact of digital platforms on the mental health of under-18s. The court ruling weighed heavily on the stock, which fell 6.5% by noon in US trading.
The case involves Kaley G.M., a 20-year-old American woman who accused Alphabet-owned YouTube and Meta-owned Instagram of contributing to her depression and suicidal ideation during her childhood. She testified that she began consuming YouTube videos intensively at the age of 6, before joining Instagram at age 9 - without parental consent.
According to her testimony, her use of Meta's platform quickly became addictive, fueling anxiety, particularly regarding body image and self-perception.
A Verdict with Potentially Major Implications
The jury awarded the plaintiff $3m in compensatory damages, plus an additional $3m after finding that both companies had acted fraudulently and with malice.
In terms of liability, Meta was found 70% responsible, compared to 30% for Alphabet. Beyond the damages awarded, this decision could mark a legal turning point for the entire industry.
This trial is the first of its kind to reach a verdict, while thousands of similar complaints are currently pending. It could thus set a precedent and pave the way for a wave of litigation targeting major platforms amid growing pressure regarding their responsibility for mental health.
At noon, Meta shares were down 6.5%, while the Alphabet stock was down approximately 2.2%.
Meta Platforms, Inc. specializes in online social networking services. Net sales break down by activity as follows:
- operation of social networking, messaging, photo and video sharing platforms (98.9%): operation of the Facebook, Instagram, Messenger, Threads and WhatsApp platforms (3.58 billion daily active users in 2025);
- sale of virtual and augmented reality products, software and devices (1.1%): virtual reality headsets (Meta Quest), connected screens (Facebook Portal), wearable devices, etc.
Net sales break down by source of income into advertising spaces (98.7%) and other (1.3%).
Net sales are distributed geographically as follows: the United States and Canada (39.2%), Asia/Pacific (26.8%), Europe (23.2%) and other (10.8%).
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