Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg has been absolved of personal liability in 25 lawsuits accusing his company of causing social media addiction in children.
What Happened: On Thursday, U.S. District Judge Yvonne Gonzalez Rogers dismissed claims that Zuckerberg was personally responsible for Meta's alleged concealment of mental health risks associated with children's use of Facebook and Instagram, reported Reuters.
The plaintiffs had accused Zuckerberg of ignoring internal warnings about the risks and publicly downplaying them.
However, Judge Rogers found the accusations lacking in specific details about Zuckerberg's wrongdoing.
She stated that "control of corporate activity alone is insufficient" to establish liability. This decision does not impact related claims against Meta itself.
The lawsuits were filed under the laws of 13 U.S. states, including Arizona, Colorado, Connecticut, Georgia, Maryland, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and Wisconsin.
Previn Warren, a partner at Motley Rice representing the plaintiffs, stated that his clients will continue to gather evidence "to uncover the truth about how Big Tech has knowingly prioritized profits over the safety of our children."
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Why It Matters: Last year, in a court filing, it was revealed that Zuckerberg was warned about social media addiction among teenagers.
Earlier this year in February, Zuckerberg, in a court appearance, argued against being personally liable in these lawsuits.
The Meta CEO's attorneys contended that it is a core principle that individuals cannot be held personally accountable for a corporation's actions or omissions simply due to their roles as executives, directors, or shareholders.
Later in April 2024, a judge partially dismissed claims against Zuckerberg in these lawsuits. At the time, Judge Rogers ruled that the plaintiffs failed to demonstrate that Zuckerberg had a personal obligation to disclose the risks associated with Meta's products based on his knowledge.
Last month, Meta reported third-quarter revenue of $40.59 billion, surpassing analyst expectations of $40.29 billion. The company also reported adjusted earnings of $6.03 per share, exceeding the consensus estimate of $5.25 per share.
Price Action: Meta shares closed Friday's session down 0.40% at $589.34. In after-hours trading, the stock declined further, reaching $588.16 at the time of writing, according to Benzinga Pro data.
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