Meta sued in class-action lawsuit over using Facebook, Instagram photos for AI smart glasses

Meta CEO Mark Zuckerberg threatened to leave California if Proposition 40 passes, potentially selling a large portion of his Class B common stock. Meta's Special Committee approved a plan to issue new non-voting Class C stock, providing Zuckerberg with liquidity to offset the tax liability and ensuring his continued residence in California for eight years.

The Nasdaq Composite fell 2.60% to 26,008.86 on Thursday, driven by declines in Meta Platforms (down 7%) and Lam Research (down 12%). Meta's higher expense outlook and Lam Research's weak guidance sparked concerns about AI spending. Other semiconductor stocks also dropped significantly. The index is now 5.8% below its October record high.

The UAE-led Operation Confrontation Ghost, involving 30 countries and 13 private partners, identified $39 billion in fraud-linked assets. The operation targeted AI-enabled fraud and digital platform scams, blocking 123.71 million fraud attempts and arresting 960 defendants. Recovery efforts are underway, but no total recovered amount was provided.

Meta's board plans to create a new class of non-voting stock to incentivize CEO Mark Zuckerberg to remain near headquarters. The $20 billion stock deal aims to retain his presence, deemed critical for the company's success. Zuckerberg's potential move was spurred by a proposed California billionaire tax. The strategy aligns with Meta's return-to-office mandate and the belief that in-person leadership enhances productivity and decision-making.

Meta's board agreed to allow Mark Zuckerberg to sell non-voting shares to cover a potential California wealth tax, ensuring his ownership stake. The tax, if passed, would levy a 5% one-time tax on billionaires' wealth. Zuckerberg committed to staying in California for eight years. Meta plans to use the new share class to raise capital for AI investments. Opponents of the tax warn it may drive wealthy residents out of the state.

Meta Platforms and other AI-related stocks fell sharply after Meta announced plans to issue new shares to fund AI spending, raising concerns about rising costs and uncertain returns. Meta's shares dropped 7%, Nvidia fell 4%, and Lam Research plummeted 12%. The Nasdaq composite lost 2.6%. Investors are worried about the financial burden of AI investments and potential dilution from stock sales.