Meta agrees to pay $16.68 billion over 10 years to settle claims its platforms harmed children, easing legal pressure below market expectations.
Meta shares rose 4.65% to $596 in premarket trading after the company reached a $16.68 billion settlement with California and other states over allegations its platforms harmed children. The agreement caps payments well below the $200 billion initially sought by states, reducing legal uncertainty for the company.
The settlement spans 10 years and avoids a prolonged legal battle. Meta’s stock had faced resistance at its 100-day moving average of $607.35, remaining below this key technical level despite recent gains. A sustained break above could signal further upside toward the 200-day moving average at $623.46.
Meta last traded above both moving averages on July 10 but fell below by July 22. The stock’s all-time high of $796.25, reached in mid-August, remains distant as buyers test resistance levels.