What happened
Shares of Meta Platforms (META -2.75%) slid Wednesday morning after it was reported late Tuesday that the company is paying $90 million to settle a data-privacy-related class-action lawsuit.
The tech stock was down by 2.9% as of 12:19 p.m. ET.
So what
For Meta, $90 million isn't exactly a lot of money -- its revenue in the fourth quarter alone was $33.7 billion. But the settlement is significant in that it adds one more dark spot to the company's already tarnished reputation.
Image source: Getty Images.
This particular class-action lawsuit, which is a decade old, alleged that Facebook continued to track its users online even after they had logged out of the social media platform.
Another notable lawsuit the company put behind it last year was also focused on user privacy. That suit, which Meta agreed to pay $650 million to settle, alleged that Facebook's tagging feature violated Illinois state law.
Then, just two days ago, Texas Attorney General Ken Paxton said that his state was suing Meta, alleging that Facebook had collected biometric data about users without their consent.
Now what
Back in November, Facebook shut down its facial-recognition system, which it had used to scan images and videos, and identify the people in them, saying that "... the many specific instances where facial recognition can be helpful need to be weighed against growing concerns about the use of this technology as a whole."
But based on the recent lawsuit settlements and the new lawsuit filings, it appears that Facebook's parent company isn't finished dealing with its troubles on the privacy front. Those could continue to weigh down Meta's stock -- at least in the short term -- as the company tries to transition away from its social media roots and focus on its metaverse ambitions.
