Meta Platforms begins a federal trial today in Oakland, California, to face lawsuits from four states.
California, Colorado, Kentucky, and New Jersey allege the company designed Facebook and Instagram to be addictive to children. The states claim Meta knowingly misled the public about the health risks to young users.
The trial could result in substantial financial penalties and force fundamental changes to social media product designs. A New Mexico court recently ordered Meta to pay $942 million in a similar youth-harm lawsuit.
The proceedings heighten investor concerns regarding legal and regulatory risks across the communication services sector.