Opening statements begin in landmark Meta trial

Summary

Opening statements began in Meta's landmark child safety trial in Oakland, with state AGs alleging Meta illegally collected under-13 user data, designed platforms to drive excessive use, and misled families about safety. The states are seeking algorithm changes and roughly $200 billion in damages, while Meta calls the claims unsubstantiated and the earlier $1.4 trillion request unreasonable. Julia Boorstin says the key investor issue is whether Meta is forced to change its algorithm, because more forced changes would be worse for the company. Meta shares were down about 2.5% on the day and about 28% over the past year.

• Opening arguments underway in Oakland in state AGs' child safety case against Meta.
• Allegations include illegal collection of under-13 data and misleading safety claims.
• State AGs want algorithm changes and around $200 billion in damages.
• Meta argues claims are unsubstantiated and damage demands unreasonable.
• Key risk: judge could force algorithm changes to features like infinite scroll and content targeting.
• More forced algorithm changes would be worse for Meta.
• New Mexico AG warns a large California judgment could constrain Meta's future financing.
• Meta shares down about 2.5% today and 28% over past year.