Meta Platforms Faces Lawsuits Over Teen Social Media Addiction
A federal judge in California has ruled that Meta Platforms (META) must confront lawsuits filed by U.S. states, alleging the company is contributing to social media addiction among teenagers.
U.S. District Judge Yvonne Gonzalez Rogers denied Meta’s request to dismiss the case, which highlights claims from multiple states regarding the company’s influence on social media use among American youth. According to the judge, the lawsuit will continue as originally filed, countering Meta’s arguments about the definition of social media addiction and the company’s liability.
Legal Challenges for Social Media Giants
The group of 30 states involved in the lawsuit is seeking injunctions against Meta’s platforms, including Facebook and Instagram, as well as unspecified financial damages. Meta joins other tech companies facing scrutiny over social media’s potential to harm teenagers; lawsuits have also been filed against ByteDance’s TikTok and Alphabet’s (GOOGL) YouTube. Accusations include claims that these companies’ algorithms contribute to addiction and associated issues like anxiety, depression, and body-image concerns.
While some lawsuits argue that these companies have not adequately warned users about the risks of using their platforms, opinions vary. Certain healthcare experts and market analysts question whether social media addiction is a significant and credible concern for adolescents.
Despite these legal challenges, META stock has risen impressively, gaining 83% over the past year.
Should You Invest in META Stock?
The consensus among 47 Wall Street analysts is that Meta Platforms stock maintains a Strong Buy rating. This assessment includes 42 Buy recommendations, four Hold, and one Sell over the past three months. The average price target for META stands at $621.71, suggesting a potential upside of 6.04% from current trading levels.
Read more analyst ratings on META stock
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