1. Italian families sue Facebook and Instagram over children's mental health issues. 2. The lawsuit claims failure to enforce age restrictions and irresponsible platform design.
Legal issues can damage META's reputation and lead to regulatory scrutiny, similar to past GDPR penalties which affected its stock price.
The lawsuit raises potential liabilities for META, impacting stock performance due to increased regulatory risks and negative public perception.
The lawsuit may spark immediate investor concerns, impacting META's stock in the near term as the legal process unfolds.