Shares of Meta Platforms (NASDAQ: META) slipped on Wednesday, falling as much as 3.4%. As of 1:30 p.m. ET, the stock was still down 3.2%.

The broader market's downdraft no doubt helped propel that decline, but the key catalyst that sent the social media titan lower was a new federal lawsuit.

Reports emerged late Tuesday that California's attorney general  -- along with the attorneys general of 33 other states and the District of Columbia -- had filed a lawsuit in federal court against Meta. That suit alleges the company "designed and deployed harmful features on Instagram and Facebook that addict children and teens to their mental and physical detriment." Eight other states that are not party to the federal lawsuit have filed related actions in their respective state courts.

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Source Fool.com