Meta Faces $25 Billion Privacy Fine, Creates New Stock Class for AI

Meta has been ordered by a New Mexico judge to pay $25 billion in civil penalties for allegedly deceiving Facebook users about privacy practices. The ruling stems from the state's case against Facebook for violations of its Unfair Practices Act.

In parallel, Meta is implementing a new stock strategy, creating a new class of non-voting shares. This move is intended to fund its extensive artificial intelligence initiatives, potential acquisitions, and employee compensation, while also ensuring Mark Zuckerberg retains control despite potential stock sales. The company also revealed that its third-quarter earnings were impacted by a child safety settlement, costing nearly $10 billion.