The Tech Oversight Project Statement on Bombshell Ruling Stripping Meta of Financial Safety Net, Insurance Protections

WASHINGTON, DC – Today, The Tech Oversight Project applauded the Delaware Courts for standing up to Meta and finding that the company’s insurers are under no obligation to protect the Big Tech giant because of evidence in the social media addiction trials. Superior Court Judge Sheldon K. Rennie ruled in favor of Meta’s insurance companies due to allegations and evidence against the company that describe deliberate and intentional acts rather than accidents or occurrences that would trigger coverage under the commercial general liability policies.

While revoking Meta’s financial safety net, Judge Rennie said, “The conduct alleged in the Social Media Litigation – even when viewed through the lens of negligence – describes deliberate acts rather than accidents under the policies.” This development comes on the heels of news that the jury in the K.G.M. trial is considering financial penalties for Meta and YouTube, which could have major financial ramifications for the hundreds of other cases brought against the Big Tech giants. 

“The tide is truly turning against Meta when major insurance companies have determined that Meta is too morally bankrupt to keep insuring – it's just bad business. Just as Big Tobacco lost its coverage once it became known they were deliberately harming their users, Big Tech’s insurers see the writing on the wall and are jumping ship,” said Sacha Haworth, Executive Director of The Tech Oversight Project. “These trials have put a giant spotlight on Big Tech’s depravity, and soon they will lose both in court and the court of public opinion.”