Meta rises after settlement with US states over social media harms

Meta Platforms META.O advances 4.7% in pre-market trading on Wednesday after reaching a settlement to resolve claims from states that it designed its platforms to addict children.

META agrees to pay a maximum of $16.68 billion to states as part of the deal.

The deal averts a high-profile federal trial from 29 states that alleged the company misled consumers about platform safety and improperly collected children's data.

The company still faces thousands of other lawsuits from individuals, school districts and state governments over claims its platforms fueled a youth mental health crisis.

It has an average analyst rating of "buy" among 65 brokers; the median price target is $750, according to data compiled by LSEG.