Why Meta Platforms Stock Slumped Wednesday Morning

The general market downdraft no doubt contributed to the decline, but the catalyst that sent the social media titan lower was likely a lawsuit filed by an activist investor. James McRitchie, a shareholder activist, has filed a lawsuit alleging that Meta and its leadership have pursued profits at the exclusion of all else, suggesting that the company's "outdated" attitude has disregarded the "high costs that Meta imposes on society and the economy." The lawsuit, which is seeking class action status, alleges that Meta Platforms has disregarded numerous "red flags" and ignored shareholder proposals regarding the harmful impact of its business and its failure to update the company's corporate governance policies.