US Stock Market Move | Meta (META.US) fell by over 3%, possibly facing a maximum fine risk of $1.4 trillion.

On Tuesday, Meta (META.US) fell by over 3%, closing at $547.86. According to reports, on August 18, a lawsuit initiated by the attorneys general of 29 states in the U.S. regarding "youth addiction" was heard. The plaintiffs allege that Meta (Meta.US) deliberately designed Facebook and Instagram to induce addiction in young people, violating the Children's Online Privacy Protection Act (COPPA) and relevant state regulations, and are seeking a ruling that Meta is in violation of the law, a fine, and an enforcement order to change its social media operating model. The case is presided over by Judge Yvonne Gonzalez Rogers of the Oakland Division of the United States District Court for the Northern District of California, with the jury hearing the case. Reports indicate that if found liable, the maximum fine per instance could reach $20,000, and due to the large volume of young users, the fines could accumulate rapidly. Meta stated that if it loses, the fines could total up to $1.4 trillion, which is nearly its current market value. The states have not disclosed the total amount being sought in damages, but California attorney Megan O'Neil revealed that the states' claims for fines total close to $193 billion. This case has been compared to the $206 billion settlement reached in 1988 between states and tobacco companies. Meta rebutted the allegations as baseless, claiming the monetary damages sought are severely imbalanced, and stated that there is no substantive evidence that anyone has been misled by the platform.