Meta Platforms shares rose after reaching a settlement of up to $16.7 billion with 47 U.S. states and territories over social media addiction lawsuits.
Meta Platforms' stock rose on Thursday, with gains reaching as high as 4.1% at one point, and still up 1.9% as of 11:46 AM ET. This follows the company's announcement on Wednesday of a broad legal settlement with 47 U.S. states, the District of Columbia, and U.S. territories. The case accused Meta of harming children's mental health by intentionally making its social media platforms addictive, violating consumer protection laws, and collecting data from children under 13. Meta agreed to pay up to $16.7 billion over the next 10 years and reached a separate settlement with Texas for up to $1 billion. Additionally, Meta will implement default safeguards to prevent minors from using the platform at night and mute notifications during school hours. Analysts believe this settlement removes a major uncertainty for Meta's stock, as potential fines in the case could have reached up to $1.4 trillion.
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