More litigation to come following Meta ruling, says Harvard Law Professor

Watch on YouTube ↗  |  March 26, 2026 at 21:35  |  4:50  |  CNBC

Summary

  • Glenn Cohen highlights a bad week for Meta and YouTube due to recent litigation verdicts, signaling potential precedent.
  • A large verdict in New Mexico against Meta involves public nuisance claims, with more rulings expected.
  • The Los Angeles case is one of thousands consolidated as a bellwether, presenting negative signals for Meta.
  • The $6 million payout split between companies is significant enough to encourage more plaintiff lawsuits and higher settlement demands.
  • Meta's defense using Section 230 immunity was rejected by courts, focusing on the line between product design and content.
  • Snap and TikTok were originally named in lawsuits; Snap settled due to liability size, and TikTok's situation is complex, but both remain vulnerable.
  • Companies may appeal to higher courts, including the Supreme Court, on Section 230 grounds to overturn rulings.
  • Public perception is shifting to frame social media as a public health issue, similar to tobacco or opioids, damaging brand image.
  • Legislative action from Congress is unlikely in the near term due to complexity and slow progress.
  • Meta and others need to address safety features and public narrative to mitigate legal and reputational risks.
Trade Ideas
Glenn Cohen Harvard Law School Professor 0:32
Cohen stated it's been a bad week for Meta due to litigation verdicts, with more cases coming and a bellwether signal not favorable. These legal losses could lead to a cascade of lawsuits, increasing financial liabilities and negative publicity, potentially impacting stock price and operations. AVOID due to elevated litigation risk, uncertainty in legal outcomes, and potential for sustained negative sentiment. Meta successfully appeals based on Section 230 immunity, reducing future liability and stabilizing its position.
Glenn Cohen Harvard Law School Professor 2:36
Cohen mentioned Snap and TikTok were originally named in the Los Angeles lawsuit, are susceptible to more litigation, and have settled or face complex legal challenges. Their involvement in similar cases indicates ongoing legal exposure that could harm financial stability, investor confidence, and business growth. AVOID due to litigation risks comparable to Meta, which may lead to increased costs, settlements, and reputational damage. These companies implement effective safety measures, achieve favorable legal rulings, or see reduced plaintiff interest, mitigating risks.
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This CNBC video, published March 26, 2026, features Glenn Cohen discussing META, SNAP. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Glenn Cohen  · Tickers: META, SNAP