Meta removes controversial Instagram AI photo feature after social media backlash

A federal trial began in California accusing Meta of designing Facebook and Instagram to be addictive to children. The case, led by attorneys general from four states, seeks $200 billion in damages. Meta denies wrongdoing and highlights its safety measures. The trial could impact Meta's operations and financials, with a verdict expected in six to eight weeks.

A trial began in the US against Meta (parent of Facebook and Instagram), with four states accusing the company of designing addictive platforms harmful to children. The states seek billions in damages and changes to Meta's operations. Meta denies the allegations, citing no clear link between social media use and wellbeing issues. The trial could impact Meta's stock and result in significant fines, with shares down 4.4% on the first day.

Meta (META) faces a U.S. federal lawsuit by 29 states, alleging its platforms' design encourages compulsive use among minors, violating privacy and consumer laws. The case seeks up to $1.4T in fines and structural changes to Meta's platforms. Meta denies wrongdoing, arguing it's being targeted for industry-wide challenges. The trial, led by Judge Yvonne Gonzalez Rogers, may impact Meta's advertising revenue and AI investments.

Kentucky and 28 other states sued Meta (parent of Facebook, Instagram) in federal court, alleging its platforms harm young users. The states seek damages potentially reaching $1.4 trillion and design changes. Kentucky AG Russell Coleman compared the case to Big Tobacco litigation. Meta denies allegations, calling the lawsuit unfair. The trial is expected to last eight weeks.

Meta faces a consequential trial in California, where states accuse it of contributing to youth mental health issues by designing addictive features and violating child privacy laws. The lawsuit seeks up to $1.4 trillion in damages, which could impact Meta's operations and market value. Meta disputes the claims, citing efforts to support young users. The trial begins Tuesday in federal court.

U.S. stocks declined across all major indexes due to semiconductor selloff. Micron dropped 7.02%, Sandisk 9.01%, and SK Hynix ADRs 9.20%. The Nasdaq fell 1.33%, and the Philadelphia Semiconductor Index tumbled 4.98%. Energy sector gained 1.79%, while tech stocks mostly weakened. Baidu fell 12.73% on weak earnings, Alibaba rose 2.76%.