Meta Platforms (META, Financials) will have to keep fighting a lawsuit that accuses Facebook and Instagram of harming children.
A federal judge in California rejected Meta's request to dismiss claims from 29 U.S. state attorneys general. The states say Meta designed its platforms to encourage compulsive use by young people and then downplayed the risks.
Meta disagrees. The company said the evidence will show its long-running efforts to support young users. The judge said there are factual disputes that should be decided later, including whether the platforms are addictive and whether Meta misled the public.
The case also includes claims tied to children's online privacy rules. The judge found Meta did not meet certain notice and parental consent requirements.
For investors, this keeps legal pressure on Meta at a sensitive time. The company is still trying to grow engagement while facing more scrutiny over teen safety, privacy and social media's effect on mental health.