Meta Platforms, Inc. ( META ) shares are trading lower Thursday. The company was found liable in a landmark social media addiction case, with the ruling that its platform design contributed to harmful and addictive use by a young user and that it failed to adequately warn of those risks. Meanwhile, Meta is also cutting several hundred jobs.

Broader market weakness and rising energy costs, with oil prices moving higher, may also be weighing on shares.

Meta stock is under selling pressure. What’s driving META stock lower?

Jury Finds Meta Liable In Social Media Addiction Case

A jury found Meta and YouTube liable for creating products that led to harmful and addictive behavior in young users, awarding $3 million in compensatory damages and $3 million in punitive damages to the plaintiff, per CBS News.

Jurors determined that Meta was negligent in designing and operating its platforms, including Instagram, and failed to adequately warn users of potential risks, despite being aware of possible adverse effects on minors. 

Meta, which owns Instagram and Facebook, was assigned 70% of the responsibility in the case, with YouTube responsible for the remaining 30%. 

The jury also found that the companies acted with "malice, oppression or fraud," contributing to the punitive damages awarded. 

Meta said it plans to appeal the verdict. 

Meta Announces Job Cuts

Meta is laying off several hundred employees across multiple divisions, including Facebook, global operations, recruiting, sales and its Reality Labs unit, according to CNBC.

Some affected employees are being offered new roles within the company, though certain positions may require relocation. The cuts come as Meta continues to restructure operations and increase investment in artificial intelligence.

Meta Shares Edge Lower

META Price Action: At the time of publication, Meta shares are trading 3.54% lower at $573.84, according to data from Benzinga Pro.

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