Meta Stock Slides 4% After Italian Families File Lawsuit Over Algorithms

Meta Platforms shares fell as much as 4% in afternoon trading on June 17, 2026, after Italian families launched the country's first collective lawsuit against Meta and TikTok. The suit alleges that recommendation algorithms on Instagram, Facebook, and TikTok exposed minors to harmful self-harm content, contributing to the 2024 suicide of 12-year-old Rossella, who maintained a secret account. Filed in Milan, the case seeks stricter age controls and algorithm transparency. Meta and TikTok rejected the claims, highlighting existing safety tools, while investors weighed the litigation against more than 2,400 pending federal cases and upcoming U.S. trials.