Meta shares rose 2.1% as investors reacted to the company’s major legal settlement

Meta Platforms (NASDAQ: META) is surging on Wednesday as investors are reacting to a new legal settlement as a major cut to the company’s risk.

META was up 2.1% at press time after a wild session. Shares jumped more than 4% soon after the opening bell, then reversed and fell 1.4%, before moving back into positive territory during afternoon trading. Jim Cramer called the agreement a “big win” and said the stock was not fully reflecting what Meta gained from ending the case.

The settlement ends a huge federal lawsuit in California that involves several states, such as California, Colorado, Kentucky, and New Jersey.

In this case, Meta was charged with developing the Facebook and Instagram features that engaged children in a destructive manner, which led to their mental illnesses.

There were also families of children and young adults who committed suicide due to their troubled social media usage and had brought lawsuits, claiming that the platform’s security was responsible for the negative impact on them. Jim claimed that Meta could have been fined up to $200 billion and spent many years fighting in court cases.

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