Meta Platforms opened its social media addiction trial in Oakland on Monday, with jury selection completed the previous week. Four states are seeking penalties of up to $1.4 trillion, and a further 29 states have joined claims under the Children's Online Privacy Protection Act.

The headline exposure is unlikely to be the operative risk. A monetary penalty is a one-time charge against a company generating substantial free cash flow. The remedy sought alongside it, court-mandated changes to how Facebook and Instagram are designed for minors, would be a permanent constraint on engagement and therefore on ad inventory.

Shares closed at $565.76, down 4.08 percent. The move appears to price the fine rather than the remedy. $Meta Platforms(META.US)