Snap shares fell 3% after a federal appeals court rejected Section 230 immunity, exposing social media platforms to lawsuits over user content. The ruling allows over 3,000 lawsuits claiming Snapchat targeted minors with addictive features to proceed, raising potential legal costs and product restrictions. Despite a strong Q2 earnings beat, the legal uncertainty weighs on Snap and peers like Meta, Reddit, and Pinterest, dragging the sector lower. Investors will watch for further appeals and clarity on legal liabilities as the cases develop.
Meta Platforms stock dropped 4% ahead of a major child safety trial accusing it of harming young users through manipulative features. The lawsuit, involving 29 states, claims Meta knowingly caused mental health issues and violated privacy laws, with ...
Several stocks experienced declines despite varying news. Pinterest shares fell due to legal investigations over alleged misleading of investors about advertising revenue and tariffs. Tapestry's stock dropped ahead of its fourth-quarter earnings repo...
