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Meta Faces Lawsuit Over AI Chatbot Access as Stock Holds Steady

Meta Faces Lawsuit Over AI Chatbot Access as Stock Holds Steady

Author:

Global Cryptocurrency

Published:

2026-01-28 07:21:01

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BTCCSquare news:

Meta Platforms shares showed muted reaction Monday despite a lawsuit alleging failure to prevent minors from accessing sexualized AI chatbots. The New Mexico Attorney General's complaint cites internal documents revealing employee concerns about underage interactions with generative AI systems.

Discovery materials show Meta staff warned of risks involving adults creating AI personas with underage characteristics. CEO Mark Zuckerberg reportedly endorsed safeguards against explicit AI interactions, yet alleged gaps in age verification persist.

The case highlights growing regulatory scrutiny of AI safety protocols. Investors appear to be pricing in limited financial impact for now, with META shares trading flat. However, the lawsuit may accelerate demand for third-party age verification solutions across social platforms.

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