Meta and YouTube Found Liable for Mental Health Harm
A California jury ruled on October 5, 2023, that Meta and YouTube are liable for mental health injuries linked to their addictive social media products. This landmark ruling establishes that social media can cause personal harm, marking a significant legal precedent.
In a related case, Meta was ordered to pay $375 million in New Mexico for failing to protect users from child predators, alongside an additional $4.2 million for the California verdict. Meta, which has over 3 billion users globally, is preparing to appeal the rulings as it faces increased scrutiny and potential legal challenges similar to those faced by the tobacco industry.
Following the verdict, Meta’s stock experienced an 8% drop, reflective of ongoing reputational risks that could affect user engagement and advertising revenue. Overall, Meta’s stock is down 17% year-to-date despite reporting a 24% revenue growth in its fourth quarter.
