Meta Platforms Inc. (NASDAQ:META) shares dropped 4.08% Monday to $565.76, shedding billions in market cap, as opening statements began in a closely watched federal trial in Oakland, California.
The sell-off coincided with the start of arguments in a case that could reshape how social media companies design products for younger users — and how much they pay when regulators say those designs cause harm.
- META stock is down. See the chart and price action here.
Trial Kicks Off In Oakland
Attorneys general from California, Colorado, Kentucky and New Jersey allege Meta engineered Facebook and Instagram to be addictive to teens while misrepresenting the platforms’ safety to parents and the public.
The trial, presided over by U.S. District Judge Yvonne Gonzalez Rogers, also folds in claims from a broader coalition of 29 states accusing Meta of violating the federal Children’s Online Privacy Protection Act by collecting data from minors without consent.
Proceedings are expected to run roughly seven weeks, with a verdict possible in early October, according to Reuters.
Where The $1.4 Trillion Comes From
The headline figure grabbing attention is $1.4 trillion — a number Meta itself disclosed in a court filing, warning that penalties calculated under the states’ methodology could reach that level, an amount which would nearly wipe out the company’s entire market value, per Reuters.
Meta called the figure “unsupported by the evidence” and said a sanction of that scale “has no analog in the history of consumer protection enforcement.”
The states arrived at the number by multiplying alleged violations tied to affected teen users by maximum per-violation fines under each state’s consumer protection statute.
Lawyers for the states have since walked back expectations. During a hearing last week, one told Judge Gonzalez Rogers the actual ask would land closer to $200 billion, according to CNBC, with other reporting pegging the figure nearer $193 billion, per The Standard.
Meta CEO Mark Zuckerberg and Instagram head Adam Mosseri are both expected to testify.
Legal observers doubt the trillion-dollar figure survives trial or appeal intact, framing it instead as a negotiating ceiling rather than a realistic outcome.
Still, the number’s proximity to Meta’s own valuation gives Monday’s opening statements outsized weight on trading desks.
Beyond damages, states are also seeking a court order to force Meta to impose age restrictions and eliminate infinite scroll — changes that could hit engagement metrics far longer than any single verdict.
META Stock Price Activity: Meta stock was down 4.08% at $565.76 at the time of publication Monday, according to data from Benzinga Pro.
Photo: Mark Zuckerberg, courtesy: Frederic Legrand – COMEO / Shutterstock
