Shares of Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) fell about 7.8% on Thursday afternoon, pressured by a series of legal setbacks, fresh layoffs and lingering investor concerns over elevated capital spending.

The decline came as the broader “Magnificent 7” technology group retreated, adding to downward pressure on the social media giant’s stock.

A jury in New Mexico found Meta liable for violating state consumer protection laws in a civil case tied to child safety on its platforms, ordering the company to pay $375 million in penalties.

The lawsuit, filed by the state’s attorney general in 2023, accused Meta of misleading users about the safety of its services and failing to adequately protect children from exploitation and mental health risks. Jurors found the company liable on all counts, with the penalty representing the maximum allowed under state law based on the number of violations.

Meta said it plans to appeal the verdict. “We disagree with the decision and will challenge it,” spokesperson Andy Stone said in a statement.

In a separate case, a Los Angeles jury late Wednesday found that Meta and YouTube contributed to the mental health issues of a 20-year-old woman due to addictive features on their platforms. The jury awarded $6 million in damages to the plaintiff, to be paid by Meta and YouTube’s parent, Alphabet.

The back-to-back rulings could carry broader implications for the tech industry, particularly around platform accountability and user safety.

Adding to the pressure, investors also reacted to news that ARK Invest, led by Cathie Wood, sold more than 3,500 Meta shares, signaling some institutional repositioning.

The combination of legal headwinds, investor sentiment and sector-wide weakness weighed heavily on Meta shares during the session.