How Social Media Verdicts Could Upend Tech Industry

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Two bellwether cases against Meta and YouTube will likely result in further litigation and class-action suits, a law expert said.

Two major court verdicts last week finding social media giants Meta and YouTube liable for harm to users could send shock waves through the tech industry.

In a first-of-its-kind lawsuit, a jury in Los Angeles on March 25 found both companies liable for making their platforms addictive and deleterious to the mental health of young users.

The 20-year-old plaintiff, referred to as “Kaley G.M.” or only her initials K.G.M. during trial, testified that she had become addicted to social media at a young age and that it negatively affected her mental health.

Jurors ultimately decided that Meta was more liable for harming K.G.M., giving the tech giant 70 percent of the responsibility, or $2.1 million of the total $3 million in punitive damages, while YouTube shouldered 30 percent, or $900,000.

An additional $3 million in compensatory damages were recommended by jurors to be paid by Meta and YouTube—the only remaining defendants in the case after TikTok and Snap settled with K.G.M. before trial—after deciding they acted with malice, oppression, or fraud in harming children with their platforms.

In a separate case, jurors in New Mexico determined on March 24 that Meta had violated state law by failing to properly disclose risks to and protect children on its social media platforms. The case, brought by New Mexico Attorney General Raúl Torrez, resulted in a $375 million fine.

Prosecutor Linda Singer, who previously served as attorney general of the District of Columbia but now works in private litigation, had asked the jury to fine Meta $2 billion.

Former federal prosecutor Neama Rahmani called them “bellwether” cases.

“Obviously, these cases will absolutely go up on appeal,” he told The Epoch Times.

“I think they will likely end up before the Supreme Court, and how they view this issue will make or break Big Tech, because I think we’re going to see lots of copycat lawsuits, and the judgments and fines are going to rack up into the billions and billions of dollars.”

While the cases reflect two different sets of accusations—addictive design on the one hand and failure to protect children on the other—both will likely invite a torrent of claims, said John Shu, a constitutional law expert who served in both Bush administrations.

“I think this will definitely open the litigation floodgates in California, and not just for individual lawsuits,” Shu told The Epoch Times. “It also opens the floodgates to class action lawsuits; that’s where the big money is.”

By Jacb Burg

Read Full Article on TheEpochTimes.com

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