Rhode Island sues Meta over scam ads — Engadget

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 faces a $25 billion fine from New Mexico for violating privacy laws during the Cambridge Analytica scandal, according to the state's Department of Justice. The penalty follows a jury verdict citing 43.9 million violations of New Mexico's Unfair Practices Act. Meta has previously settled other related lawsuits for $725 million and $17 billion.

Rosenblatt Securities reiterated a Buy rating and $900 price target on Meta Platforms (META) after its stock fell following news of a potential capital raise. Meta's third-quarter 2026 results showed 26% revenue growth, but mixed overall. Analysts have mixed views, with some raising targets and others expressing caution.

Meta shares fell 7% to $648.68 as Rhode Island sued over alleged fraudulent ads. Hims & Hers faces an FTC lawsuit over subscription practices and data sharing, with a $60M legal reserve. Analysts have a Hold rating on HIMS, with an average target of $32.82. A court hearing is set for January 2027.

Nasdaq fell 2.6% as tech stocks declined due to earnings concerns and AI spending worries. Meta (META) dropped 7% despite revenue beat, citing higher AI costs. Tesla (TSLA) fell 3.1% after reporting lower earnings and increased expenses. Procter & Gamble (PG) rose 5.6% on strong earnings. Oil prices rose 3% to $100.06 per barrel.

Rhode Island sued Meta, alleging the company profits from scam ads and fails to prevent them. Meta claims it removed 159 million scam ads and criticized the state for not engaging in discussions. The suit follows similar actions by other entities. Reuters reported scam ads may generate billions for Meta, potentially 10% of its revenue.