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  • 14 hours ago
A California jury awarded $6M in damages against Meta and Alphabet, finding their platforms were designed to be addictive and posed known risks to minors. Analyst Gary Black compared the verdict to tobacco litigation and said it may be overturned on appeal, while both stocks have underperformed the S&P 500 this year.
Transcript
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Meta Platforms and Alphabet face legal scrutiny after a California jury
00:06held the companies accountable for a young woman's mental health issues
00:10and awarded $6 million in damages.
00:13In a post on X, the Future Fund's Gary Black said the verdict contributed to
00:17underperformance in both stocks compared to the S&P 500 this year.
00:22The jury found the platforms were designed to be addictive and that risks to children
00:26were known or should have been known.
00:27Black compared the case to tobacco verdicts and said it may be overturned on appeal.
00:32He said companies may adopt age verification using government ID.
00:36Black said both stocks are undervalued based on their growth potential.
00:40Legal battles could reshape how social media companies operate and protect users,
00:44especially minors, as regulatory scrutiny increases.
00:48For all things money, visit Benzinga.com.
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