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Depression, Anxiety and Insomnia. Meta Accused of Enabling Minors. Shares at Two-Digit Discount

The federal court rejected Meta's motion to dismiss the lawsuit alleging unfair practices against minor Facebook and Instagram users. Prosecutors from 29 U.S. states accuse the company of actions that could lead to children becoming addicted to these platforms.

Depression, Anxiety and Insomnia. Meta Accused of Enabling Minors. Shares at Two-Digit Discount
DAVID GRAY/AFP/East News
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  1. Another setback for Meta. The fate of minors hangs in the balance
    1. Meta shares at a 15% discount since January

      Another setback for Meta. The fate of minors hangs in the balance

      Federal judge Yvonne Gonzalez Rogers rejected Meta's motion to dismiss the lawsuit, which includes allegations of violating the Children’s Online Privacy Protection Act (COPPA).

      Prosecutors from 29 U.S. states claim that the company may have designed the Facebook and Instagram services in a way that encourages children to become addicted, and that it deliberately concealed the resulting harms from the public.

      Research cited by the plaintiffs showed that children’s use of these platforms may be linked to an increased risk of depression and anxiety, as well as sleep disorders, learning difficulties, and suicidal behaviors.

      “We strongly disagree with these allegations and are confident that the evidence will confirm our long‑standing commitment to supporting youth,” the company said in an official statement.

      Meta’s board asserts that prosecutors have no evidence that the company misled consumers, and that addiction to social media is “not a recognized psychiatric disorder.”

      The giant also maintains that it did not violate child privacy laws online.

      Despite this, California Attorney General Rob Bonta stated that Meta’s motion dismissal is a “key victory” in holding the conglomerate accountable.

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      According to Reuters, the trial over claims from California, Colorado, Kentucky, and New Jersey against Meta is scheduled for August 18.

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      Meta shares at a 15% discount since January

      Meta’s stock closed at $563.29 on Tuesday, June 30, up 0.12%.

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      In pre‑market trading on July 1, the price fell to 563,04 USD.

      Since the beginning of the year, shares have dropped by 15%.

       

      Chart. Meta stock price

      depression anxiety and insomnia meta accused of enabling minors shares at two digit discount grafika numer 1depression anxiety and insomnia meta accused of enabling minors shares at two digit discount grafika numer 1

      Source: TradingView.

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      Also read: Nvidia in the spotlight. New information emerges on H200 export to China

       

      See also: 2026 market surprises? “Investors should ensure their portfolios are ready for an upward trend”

       

      Source: Reuters.

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      FXMAG Team

      FXMAG Team

      FXMAG’s editorial team creates high-quality content on financial markets, investing, and the global economy. We provide timely analysis and clear insights to help our audience navigate complex market dynamics.


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