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Meta shares jump after $16.68 billion teen addiction settlement
Meta agreed to pay $16.68 billion and add daily usage limits plus nighttime restrictions for children on Facebook and Instagram.
Meta Platforms shares rose about 4% on Wednesday, August 26, after the company settled a major federal case tied to allegations of teen social media addiction, according to LiveMint Markets citing Reuters.
The settlement is valued at $16.68 billion and includes added child-safety measures across Facebook and Instagram to end a landmark trial and address claims brought by 47 states, the outlet said. Meta will impose daily usage limits and restrict nighttime usage for children, while also enhancing steps to prevent access to age-restricted content.
The agreement resolves claims from 29 states including California, Colorado, Kentucky and New Jersey, LiveMint Markets reported. The company also said in a blog post that it was building on efforts to support teens and empower parents.
Separately, the settlement also covers privacy-related lawsuits tied to the Cambridge Analytica scandal, with certain states set to receive $459.3 million to resolve those matters, the report added. LiveMint Markets noted that Meta and other major social media companies still face thousands of additional youth mental health and privacy lawsuits in federal and state courts.