Meta Faces $1.4 Trillion Threat, Stock Drops as Landmark Youth-Safety Trial Begins
The Meta trial over child safety opened in Oakland federal court on Tuesday, and Meta Platforms stock fell 4.45% to $543.67.
Four US states accuse the company of hooking teenagers through addictive design. Meta's own filing put the theoretical penalty as high as $1.4 trillion.
Where the Meta Trial's $1.4 Trillion Number Came From
California, Colorado, Kentucky and New Jersey brought the case. The states never demanded a fixed $1.4 trillion, however. Meta produced that number itself in July, when it responded to the states' brief on how penalties should be calculated.
Meta called those calculations outlandish and without precedent in consumer protection enforcement. The states, meanwhile, told the judge that roughly $200 billion is the more likely figure.
California Attorney General Rob Bonta has framed the case around restitution rather than damages. Judge Yvonne Gonzalez Rogers is presiding, and the trial should run about six weeks.
Tuesday's drop extends a longer slide. META has now lost 6.38% over five days and 16.06% across the past month. The stock also sits 29.86% lower than a year ago.
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