Technology giants Meta Platforms (META) and Google parent company Alphabet (GOOGL) have been found liable in a landmark legal case about social media addiction.
A jury in Los Angeles, California has found that Meta’s social media platforms such as Instagram and Google’s YouTube were negligent and failed to warn users of the dangers associated with using their platforms.
Analysts and legal experts say the case could have major repercussions across the social media landscape.
The trial took place in late January in L.A. Superior Court. A young woman identified as K.G.M., or Kaley, alleged that she became addicted to apps like Instagram and YouTube as a child.
Jurors ultimately ruled in favor of the young woman, who claimed that Meta and YouTube’s negligence played a “substantial factor” in causing mental health-related harms.
Damages have been assessed at $3 million U.S., with Meta on the hook for 70% and YouTube the remaining 30%.
Punitive damages in the case have been awarded at an additional $3 million U.S., with $2.1 million U.S. to be paid by Meta Platforms and $900,000 U.S. by YouTube.
While lawyers for the plaintiff called the verdict a “historic moment,” Meta said in a statement, “We respectfully disagree with the verdict and are evaluating our legal options.”
The case in Los Angeles is one of several trials taking place this year that experts have likened to the Big Tobacco lawsuits of the 1990s.
In both cases, technology and tobacco companies were found to have lied to the public about the safety and potential harms of their products.
Earlier this week, jurors in Santa Fe, New Mexico found that Meta Platforms was liable for failing to properly safeguard its apps from online predators who target children.
In the New Mexico verdict, Meta was ordered to pay $375 million U.S. in damages based on the number of violations. The company said it would appeal the outcome.
META stock has declined 3% over the last 12 months to trade at $594.89 U.S. per share. GOOGL stock has gained 76% in the past year to trade at $290.93 U.S. a share.
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