Meta Platforms (META) says that it has reached a settlement with a Kentucky school district over claims that the company’s social media platforms negatively impacted students’ mental health.
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The agreement resolves a lawsuit filed by Breathitt County School District in Kentucky and follows earlier settlements by co-defendants Alphabet (GOOGL) and TikTok. The case was set for a June 15 trial in a California federal court but has now been resolved, said Meta.
Terms of the settlement have not been made public. But the lawsuit had sought over $60 million in damages to cover the costs associated with social media’s harms to students’ mental health, and to fund a 15-year mental health program. The school district had claimed that Meta’s social media platforms such as Facebook and Instagram are designed to be addictive.
Hooking Young Minds
Breathitt County, a small rural district in Appalachia, accused Meta, Google parent company Alphabet, and TikTok of designing their platforms to keep young users hooked, which the district said caused anxiety, depression, and self-harm among students.
The district also argued that schools were left to address the resulting consequences of the students’ mental health issues. Breathitt County is one of about 1,200 school districts in the U.S. that are pursuing legal claims against Meta Platforms over negative impacts allegedly caused by its social media sites.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 38 Wall Street analysts. That rating is based on 31 Buy and seven Hold recommendations issued in the last three months. The average META price target of $817.71 implies 36% upside from current levels.
