The proceedings reportedly follow a $6 million negligence verdict against Meta and YouTube in March, as thousands of similar lawsuits remain pending in U.S. courts.

  • Snap faces claims from two plaintiffs, aged 16 and 18, while Meta faces claims from the older plaintiff following a settlement with the other, according to Reuters.
  • Meta CEO Mark Zuckerberg, Instagram Head Adam Mosseri and Snap CEO Evan Spiegel are expected to testify.
  • Meta and Snap have also requested separate trials, expressing concerns that combining the cases could confuse jurors by mixing evidence.

Meta Platforms (META) and Snap Inc. (SNAP) are reportedly set to face trial in Los Angeles on Wednesday over allegations that their social media platforms were deliberately designed to encourage addictive use and contributed to mental health problems among young users.

Reuters reported that the proceedings, beginning with jury selection, mark the second trial involving individual plaintiffs bringing such allegations against social media companies.

The trial is expected to last several weeks, with Meta CEO Mark Zuckerberg, Instagram Head Adam Mosseri and Snap CEO Evan Spiegel among those expected to testify.

What Are The Allegations?

The plaintiffs, identified in court documents as S.J., a 16-year-old from Illinois, and K.D.B., an 18-year-old from Mississippi, allege that features including autoplay and infinite scrolling encouraged compulsive social media use, contributing to depression, anxiety and eating disorders, per the report.

Both plaintiffs previously reached settlements with TikTok and Alphabet's (GOOG, GOOGL) YouTube, while the Illinois plaintiff also settled with Meta (META).

According to Reuters, Snap faces claims from both plaintiffs, while Meta faces claims from the Mississippi plaintiff. The plaintiffs are seeking unspecified compensatory and punitive damages.

Meta and Snap have also requested separate trials, expressing concerns that combining the cases could confuse jurors by mixing evidence.

How Meta And Snap Responded

Meta disputed the allegations, telling Reuters that it has developed protections for younger users over the past decade.

A Meta spokesperson told Reuters that the Mississippi plaintiff used TikTok far more than Instagram or Facebook and maintained that her personal circumstances were a substantial factor in her struggles.

Snap also disputed the allegations, saying Snapchat differs from traditional social media platforms because it does not open to a feed or a ranking of other users' posts. The company said it has implemented safeguards for its users.

Stocktwits reached out to Meta and Snap for comment on the trial and the allegations. Neither company had responded at the time of publication.

Why The Trial Matters

The two lawsuits are among more than 3,000 cases consolidated in Los Angeles Superior Court and, according to the report, have been selected as test cases that could influence the resolution of others.

Separately, more than 3,800 lawsuits involving similar allegations are pending in federal court in California.

In March, a Los Angeles jury found Meta and YouTube negligent in another case and awarded $6 million in damages. Meta is appealing that verdict, maintaining that Section 230 of the Communications Decency Act should have barred the claims.

In the current proceedings, the trial judge has allowed claims concerning platform design to proceed despite the companies' Section 230 defense.

What Retail Thinks About SNAP, META Stock

On Stocktwits, retail investors’ sentiment around SNAP stock slipped to ‘bullish’, while sentiment around Meta stock remained ‘bullish’.

So far this year, Meta stock has fallen over 5%, while SNAP stock has plunged over 27%. By comparison, the Vanguard Morningstar Total Stock Market ETF (VTI), which holds both stocks, has risen over 12% over the same period.

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