REGULATORY · COMPETITIVE · USA
Jury Finds Meta and YouTube Liable
Change
A Los Angeles jury found Meta and YouTube liable for designing addictive products that harmed a young user and awarded $6 million in damages, with Meta assigned 70% and YouTube the remainder.
Why it matters
A Los Angeles jury concluded the companies were negligent and failed to warn about product dangers, and awarded the plaintiff $6 million. The jury allocated 70% of the award to Meta and the remainder to YouTube. The trial lasted six weeks in Los Angeles superior court, and deliberations took nearly nine days. The case was the first of more than 20 bellwether trials; the next bellwether trial is scheduled for July and a separate federal series of cases starts in San Francisco in June.
Implications
- · Meta is obligated to pay 70% of the $6 million award (approximately $4.2 million); YouTube is obligated to pay the remaining 30% (approximately $1.8 million).
- · Confirmed damages obligations create immediate payment and potential cash outflow requirements for the named defendants.
- · Creates direct damages exposure tied to the action
Who is affected
- · Platforms
- · Shareholders
- · Creditors
What to watch
- · Next bellwether trial scheduled for July
- · Federal series of cases starting in San Francisco in June
Source
Topics
Law & Public Safety Court Rulings Technology & Innovation Big Tech