Shares of Meta, the parent company of Facebook and Instagram, fell nearly 5% Friday, capping a week in which the stock dropped about 13%. The selloff accelerated after two high-profile courtroom losses raised concerns about mounting litigation risks.

On Thursday, Meta’s market value shrank by roughly $119 billion, knocking it out of the top seven U.S. companies by market capitalization for the first time since 2023. Zuckerberg, who owns about 13% of the company, saw his wealth fall to $182.5 billion, a $21 billion decline in 24 hours, making him the largest loser on Forbes’ real-time billionaire rankings.

The legal setbacks came in quick succession. A New Mexico court ruled Meta failed to protect children from sexual predators, imposing $375 million in penalties. The following day, a California jury found Meta and Google’s YouTube deliberately built addictive features targeting minors, awarding $4.2 million to a now 20-year-old woman.

Meta announced it will appeal both decisions, but investors are focused on the broader implications: the potential for thousands of similar lawsuits nationwide. Legal analysts warn the rulings could trigger a reckoning comparable to the wave of litigation against Big Tobacco, potentially reshaping how social media platforms operate and expose them to significant liability.