Category: Stock Market

A 20-year-old woman who claimed that her addiction to social media was a factor in her mental health problems was awarded damages by a jury that found Meta and Google liable. As the companies fight thousands of similar claims, this landmark decision could put them at grave risk

 

The Los Angeles verdict on Wednesday, the ninth day of jury deliberations, highlights the difficulty of determining how much social media is to blame for the varying degrees of distress that young people endure.

It also draws attention to the potential multibillion-dollar exposure from lawsuits claiming that YouTube, Instagram, and other platforms are intentionally designed to addict young users without taking into account their welfare.

Two more bellwether cases are scheduled to go to trial in California state court this year. The companies’ losses may spur settlement negotiations, which could lead to a comprehensive deal akin to those that hurt the tobacco and opioid industries.

The lawsuits, which are based on allegations of psychological distress, physical impairment, and suicide death, have been filed by children, adolescents, and young adults, sometimes through their parents, siblings, or other family members.

According to Eric Goldman, associate dean for research at Santa Clara University School of Law, who has taught and studied internet law for over 30 years, “it’s evident that juries are concerned.” They’re “willing to attach large damage awards.”.  The 12-person jury in the first case of its kind to go to trial determined that Meta and Google should have warned that their products might be hazardous for minors and were negligent in the way their platforms were designed and operated. Certain civil lawsuits do not require unanimous verdicts, unlike criminal cases.

The jurors found both companies liable by a vote of 10-2. The jury determined that Google owes $1.8 million and that Meta must pay $4.2 million to the plaintiff, Kaley GM. Kaley’s losses, including the cost of therapy, will be covered by half of each company’s payment; the other half will be used as punitive damages to deter future wrongdoing.

Mark Lanier, a Kaley attorney, had argued to the jury that they should take into account the enormous wealth of both businesses, emphasizing that even $1 billion in punitive damages would be insignificant.

Kaley blamed the platforms for several negative effects, including anxiety, depression, and body dysmorphia. She claimed to have started using the Instagram photo-sharing app at the age of nine and to have started watching YouTube at the age of six. Despite being present in the courtroom to hear the verdicts, she remained silent.