Meta Faces Trial Over Data Practices with Potential Changes to Platform Features
Meta Platforms, Inc. (NASDAQ:META) is currently on trial in Oakland, California, where 29 states are suing the company for up to $1.4 trillion and seeking court orders that would force changes to Facebook and Instagram features like infinite scroll, autoplaying videos, disappearing Stories, beauty filters, and algorithm-driven feeds for minors. The case follows a recent loss in New Mexico, where Meta was fined $942 million by a judge who labeled the company a 'public nuisance.' The trial is being decided by Judge Yvonne Gonzalez Rogers rather than an advisory jury, which may lead to more legally conservative outcomes. Meta has defended itself against claims that it exploits user data and engagement tactics for profit, citing efforts like flagging 1.4 million underage accounts over four years. While Wall Street appears unconcerned about existential risks from the lawsuit—CNBC's Jim Cramer advised investors not to sell based on litigation risk—the potential redesign of Meta’s core features could significantly impact its advertising business model.
Tickers: $META
Topics: doomscrolling Facebook Instagram litigation Meta Stories feature