Meta and its social media platforms Facebook and Instagram are facing a class action lawsuit in Australia over allegations addictive design features are harming children and teenagers.
The suit filed in the Federal Court on behalf of eight applicants seeks to recover compensation for Facebook and Instagram users who were exposed to harmful content or developed an addiction to social media, law firm Minter Ellison and Litigation Lending said in a statement.
The Federal Court in Sydney issued on Monday a suppression order stopping publication of details of the claim and the identity of the applicants, court documents show.
"We are aware of this claim and we will defend ourselves vigorously," a Meta spokesperson said in a statement.
Litigation Lending Services Supports Australian Families in Class Action Against Meta
Litigation Lending Services said it was funding the class action for Australian families who "would have no practical means of pursuing these claims against a global technology giant".
"This proceeding raises important questions about the design and operation of social media platforms and their impact on children and teenagers in Australia," Minter Ellison partner William Nolan said in a statement.
In August, Meta agreed to pay up to US$17.7 billion in the United States to settle claims that it deliberately engineered its platforms to hook young users.
Meta beat investor expectations for third-quarter revenue on Wednesday as it doubles down on a global AI race but the social media giant's profits took a hit due to an $18 billion legal settlement with nearly all US states.
The company reported $9.86 billion in profits from July to September, almost 50 percent below investor expectations, which Meta said was dragged down by a $9.9 billion charge related to the settlement.
Meta reported its earnings just hours after another financial penalty was announced related to a case in New Mexico.
A judge ruled that Meta must pay $25 billion to New Mexico after a jury found last month that the social media giant had deceived users in a case related to the Cambridge Analytica scandal.