Meta’s CEO is expected to answer tough questions on Wednesday from attorneys representing a now 20-year-old woman identified by the initials KGM, who claims her early use of social media addicted her to the technology and exacerbated depression and suicidal thoughts. Meta Platforms and Google’s YouTube are the two remaining defendants in the case, which TikTok and Snap have settled.
Zuckerberg has testified in other trials and answered questions from Congress about youth safety on Meta’s platforms, and he apologized to families at that hearing whose lives had been upended by tragedies they believed were because of social media. This trial, though, marks the first time Zuckerberg will answer similar questions in front of a jury. and, again, bereaved parents are expected to be in the limited courtroom seats available to the public.
The case, along with two others, has been selected as a bellwether trial, meaning its outcome could impact how thousands of similar lawsuits against social media companies would play out.
A Meta spokesperson said the company strongly disagrees with the allegations in the lawsuit and said they are “confident the evidence will show our longstanding commitment to supporting young people.”
One of Meta’s attorneys, Paul Schmidt, said in his opening statement that the company is not disputing that KGM experienced mental health struggles, but rather that Instagram played a substantial factor in those struggles. He pointed to medical records that showed a turbulent home life, and both he and an attorney representing YouTube argue she turned to their platforms as a coping mechanism or a means of escaping her mental health struggles.
Zuckerberg’s testimony comes a week after that of Adam Mosseri, the head of Meta’s Instagram, who said in the courtroom that he disagrees with the idea that people can be clinically addicted to social media platforms. Mosseri maintained that Instagram works hard to protect young people using the service, and said it’s “not good for the company, over the long run, to make decisions that profit for us but are poor for people’s well-being.”
Much of Mosseri’s questioning from the plaintiff’s lawyer, Mark Lanier, centered on cosmetic filters on Instagram that changed people’s appearance — a topic that Lanier is sure to revisit with Zuckerberg. He is also expected to face questions about Instagram’s algorithm, the infinite nature of Meta’ feeds and other features the plaintiffs argue are designed to get users hooked.
“Late Show” host Stephen Colbert on Tuesday night called CBS’s denial of his claim that it blocked the broadcast of his interview with Texas state Rep. James Talarico “crap” — and urged the network and its parent, Paramount Skydance, to stand up to the “bullies” in the Trump administration.
Colbert’s broadside came hours after CBS issued a statement on the controversy.
The host, whose show will end in May as it was canceled by CBS, held up a printed copy of the network’s statement about Talarico’s interview during his show Tuesday night and said, “I don’t even know what to do with this crap.”
He then pulled a plastic doggy bag from behind his desk, picked up the statement, tied a knot, and mimed throwing it away before cutting to commercial.
The controversy is the latest flap to spark speculation that CBS is currying favor with the Trump administration as Paramount makes a hostile tender bid for Warner Bros Discovery. If WBD’s shareholders accept Paramount’s bid, the federal government regulators would need to sign off on the deal.
Colbert had invited Talarico, who is running in the Democratic primary for a U.S. Senate seat from Texas, to appear on the “Late Show” for Monday night’s broadcast.
But early in that night’s show, Colbert said to his studio audience that CBS’ lawyers had told him “in no uncertain terms … that we could not have him on the broadcast.”
Colbert said the lawyers wanted to avoid running afoul of new guidance by the Federal Communications Commission Chairman Brendan Carr that suggests broadcast talk shows could be required to abide by the so-called equal time provision requiring broadcasters to give political candidates equal coverage if their opponents appear on air.
Colbert noted that he had put Talarico’s interview on the “Late Show” YouTube channel — the video has been seen more than 4.4 million times.
CBS, in its statement on Tuesday afternoon, denied Colbert’s main allegation that it had barred the interview from being aired.
“The Late Show was not prohibited by CBS from broadcasting the interview with Rep. James Talarico,” the network said.
“The show was provided legal guidance that the broadcast could trigger the FCC equal-time rule for two other candidates, including Rep. Jasmine Crockett [D-Texas], and presented options for how the equal time for other candidates could be fulfilled,” CBS said.
Colbert scoffed at the statement during Tuesday’s show.
“They know damn well that every word of my script last night was approved by CBS lawyers who, for the record, approved every script that goes on the air,” Colbert said.
“In fact, between the monologue I did last night, and before I did the second act talking about this issue, I had to go backstage,” he said.
“I got called backstage to get more notes from these lawyers. Something that had never, ever happened before, and they told us the language they wanted me to use to describe that equal time exception, and I used that language,” Colbert said. “So I don’t know what this is about.”
Colbert went on to say that he wasn’t “mad” at the network and does not want an “adversarial relationship.”
“I’m just so surprised that this giant global corporation would not stand up to these bullies,” he said.
“Come on. You’re Paramount. No, no, no, you’re more than that. You’re Paramount+,” Colbert cracked. “And for the lawyers to release this [statement] without even talking to me is really surprising.”
The host also noted that there has long been “a very famous exception to” the equal time rule, “and that exception included talk shows, interviews with politicians.”
“We looked, and we can’t find one example of this rule being enforced for any talk show interview, not only for my entire late-night career, but for anyone’s late-night career, going back to the 1960s,” he said.
Colbert said that Carr has “not gotten rid of” that exception for talk-show hosts “yet.”
“But CBS generously did it for him and told me, unilaterally, that I had to abide by the equal time rules, something I have never been asked to do for an interview in the 20 years of this job,” he added.
“Now, that decision, I want to be clear, is their right, just like I have the right to talk about their decision on air last night,” Colbert said.
Paramount did not immediately respond to CNBC’s request for comment.
Early voting in the Texas Democratic primary began Tuesday. Talarico is in a close contest against Rep. Jasmine Crockett. The winner will face the victor of the Republican primary between Sen. John Cornyn and Texas Attorney General Ken Paxton.
Democrats have not won a statewide race in Texas since 1994.
Preteen girl at desk solving homework with AI chatbot.
Phynart Studio | E+ | Getty Images
The UK government is closing a “loophole” in new online safety legislation that will make AI chatbots subject to its requirement to combat illegal material or face fines or even being blocked.
After the country’s government staunchly criticized Elon Musk’s X over sexually explicit content created by its chatbot Grok, Prime Minister Keir Starmer announced new measures that mean chatbots such as OpenAI’s ChatGPT, Google’s Gemini, and Microsoft Copilot will be included in his government’s Online Safety Act.
The platforms will be expected to comply with “illegal content duties” or “face the consequences of breaking the law,” the announcement said.
This comes after the European Commission investigated Musk’s X in January for spreading sexually explicit images of children and other individuals. Starmer led calls for Musk to put a stop to it.
Keir Starmer, UK prime minster, during a news conference in London, UK, on Monday, Jan. 19, 2026.
Bloomberg | Bloomberg | Getty Images
Earlier, Ofcom, the UK’s media watchdog, began an investigation into X reportedly spreading sexually explicit images of children and other individuals.
“The action we took on Grok sent a clear message that no platform gets a free pass,” Starmer said, announcing the latest measures. “We are closing loopholes that put children at risk, and laying the groundwork for further action.”
Starmer gave a speech on Monday on the new powers, which extend to setting minimum age limits for social media platforms, restricting harmful features such as infinite scrolling, and limiting children’s use of AI chatbots and access to VPNs.
One measure announced would force social media companies to retain data after a child’s death, unless the online activity is clearly unrelated to the death.
“We are acting to protect children’s wellbeing and help parents to navigate the minefield of social media,” Starmer said.
Alex Brown, head of TMT at law firm Simmons & Simmons, said the announcement shows how the government is taking a different approach to regulating rapidly developing technology.
“Historically, our lawmakers have been reluctant to regulate the technology and have rather sought to regulate its use cases and for good reason,” Brown said in a statement to CNBC.
He said that regulations focused on specific technology can age quickly and risk missing aspects of its use. Generative AI is exposing the limits of the Online Safety Act, which focuses on “regulating services rather than technology,” Brown said.
He said Starmer’s latest announcement showed the UK government wanted to address the dangers “that arise from the design and behaviour of technologies themselves, not just from user‑generated content or platform features,” he added.
There’s been heightened scrutiny around children and teenagers’ access to social media in recent months, with lawmakers citing mental health and wellbeing harms. In December, Australia became the first country to implement a law banning teens under 16 from social media.
Australia’s ban forced apps like Alphabet’s YouTube, Meta’s Instagram, and ByteDance’s TikTok to have age-verification methods such as uploading IDs or bank details to prevent under-16s from making accounts.
Spain became the first European country to enforce a ban earlier this month, with France, Greece, Italy, Denmark, and Finland also considering similar proposals.
Additionally, the country’s House of Lords, an unelected upper legislative chamber, voted last month to amend the Children’s Wellbeing and Schools Bill to include a social media ban for under-16s.
The next phase will see the bill reviewed by parliament’s the House of Commons. Both houses have to agree on any changes before they pass into law.
Close up image of a tablet screen displaying a portrait of Jeffrey Epstein beside the official U.S. Department of Justice website page titled Epstein Library in Washington District of Columbia United States on February 11, 2026.
Veronique Tournier | Afp | Getty Images
The recent release by the Department of Justice of millions of pages of emails and other documents related to the notorious sex predator Jeffrey Epstein has led to a wave of resignations and other uncomfortable fallout for high-profile people around the world whose dealings with him have been exposed.
Those individuals include the top lawyer at the major investment bank Goldman Sachs, the CEO of Dubai’s largest port, a former president of Harvard University, a former U.S. president and ex-secretary of State, and the chairman of a leading American corporate law firm.
The fallout from the Epstein files and people mentioned in them has even imperiled the government of United Kingdom Prime Minister Keir Starmer, even though the Labour Party leader never knew the convicted sex offender.
Epstein, who cultivated relationships with many rich and powerful men and women, pleaded guilty in 2008 in Florida to state criminal charges related to soliciting prostitution, with one charge related to a girl under the age of 18.
He ended up serving 13 months in prison in that case, but was allowed to go to his office many days for work.
In August 2019, Epstein killed himself in a jail in New York City, weeks after being arrested on federal child sex trafficking charges.
A number of the people who have resigned their jobs in recent weeks had friendly dealings with Epstein after his 2008 conviction, which was widely publicized at the time.
Being mentioned in the Epstein files does not mean that someone was implicated in any of the crimes that he previously pleaded guilty to, or was later charged with. No one on the list of names compiled by CNBC of those affected by their association with Epstein has been charged for such conduct.
Here are some high-profile figures who have been burned by their appearances in the Epstein files:
Sultan Ahmed bin Sulayem (L), Kathryn Ruemmler (C), Brad Karp (R)
Reuters | Getty Images | Getty Images
Sultan Ahmed bin Sulayem: CEO of DP World
Sulayem resigned as CEO of Dubai’s largest port operator on Feb. 13, after leading the company for 10 years. Documents showed Epstein once referring to Sulayem as one of his “most trusted friends.” CNBC has reached out to the government of Dubai Media Office and DP World, seeking comment from Sulayem, who to date has not issued a statement on the situation.
Kathryn Ruemmler: Chief Legal Officer and General Counsel at Goldman Sachs
Ruemmler, a former White House counsel under then-President Barack Obama, announced her resignation from Goldman Sachs on Feb. 12, effective at the end of June. Last week, The Wall Street Journal reported that Ruemmler was one of three people Epstein called when he was arrested in July 2019. She once thanked Epstein after receiving luxury gifts from him, calling him “Uncle Jeffrey.” Ruemmler told the Journal in January: “As I have said, I regret ever knowing him, and I have enormous sympathy for the victims of Epstein’s crimes.”
Brad Karp: Chairman of Paul Weiss
Karp resigned as chairman of Paul Weiss on Feb. 4, after leading the major corporate law firm since 2008. Files show Karp thanking Epstein for a “once in a lifetime” evening in 2015, and asking if he could help his son land a job on a Woody Allen film in 2016. Days before he resigned, Paul Weiss issued a statement to The New York Times saying, “Mr. Karp attended two group dinners in New York City and had a small number of social interactions by email, all of which he regrets.”
David Gelernter (L), Bill and Hillary Clinton (C-R)
AP (L) | Getty Images (R)
David Gelernter: Yale University computer science professor
Gelernter was barred from teaching classes at Yale on Feb. 11 as the university conducts a review of his relationship with Epstein. Gelernter had extensive email communications with Epstein, which included one 2011 missive in which the professor recommended a Yale student for a project, referring to her as a “small goodlooking blonde.” Gelernter has not responded to CNBC’s requests for comment after Yale took action.
Bill Clinton: Former U.S. president
Clinton flew on Epstein’s private plane multiple times in 2002 and 2003, and was photographed in casual social settings with Epstein and the sex offender’s now-convicted procurer, Ghislaine Maxwell. Clinton initially resisted a subpoena by the House Oversight Committee to testify about Epstein, but agreed to appear after it threatened to hold him in contempt of Congress. Clinton is due to testify on Feb. 27. Clinton’s spokesman in 2019 issued a statement saying, “President Clinton knows nothing about the terrible crimes Jeffrey Epstein pleaded guilty to in Florida some years ago, or those with which he has been recently charged in New York.” Clinton on Feb. 7 retweeted a post on X from his spokesman that said, “What DOJ has released thus far, and the manner in which it has done so, makes one thing clear: someone or something is being protected. We don’t know who, what, or why. We do know this: we need no such protection. It’s why only the Clintons have called for a public hearing.”
Hillary Clinton: Former secretary of State
Hillary Clinton, who is married to the former president, has said she does not recall ever speaking to Epstein. Despite that, the House Oversight Committee subpoenaed her to testify for its inquiry into the predator. Like former President Clinton, the former secretary of State initially refused to appear, but then agreed to testify on Feb. 26 after being threatened with a contempt finding. Speaking at the Munich Security Conference on Feb. 14, Clinton again called for the release of all of the Epstein files, saying, “It is something that needs to be totally transparent,” The Independent reported. “I’ve called for many, many years for everything to be put out there so people can not only see what’s in them but also, if appropriate, hold people accountable. We’ll see what happens,” she said.
Lord Peter Mandelson (L), Morgan McSweeney (C), Larry Summers (R)
Mandelson was fired by UK Prime Minister Keir Starmer on Sep. 12 and resigned from the Labour Party on Feb. 2 over his ties to Epstein. Mandelson wrote a note in Epstein’s 50th Birthday Book, addressing him as “my best pal,” and has been accused of sending Epstein market-sensitive government information following the 2008 financial crisis. Mandelson, in comments to the Financial Times in February 2025, said, “I regret ever meeting him or being introduced to him by his partner Ghislaine Maxwell.” He also said, “I regret even more the hurt he caused to many young women. I’m not going to go into this. It’s an FT obsession and frankly you can all f— off. OK?”
McSweeney resigned Feb. 11, taking responsibility for Starmer’s appointment of Mandelson as ambassador. McSweeney told reporters, “The decision to appoint Peter Mandelson was wrong,” adding that the former ambassador “damaged our party, our country and trust in politics itself.”
Larry Summers: OpenAI board member and former Harvard University president
Summers announced in November that he would step back from public commitments, including serving as a board member at the artificial intelligence company OpenAI and teaching classes as a professor at Harvard. The former Treasury secretary was named as a backup executor in a 2014 version of Epstein’s will. Summers, in a statement in November, said, “I am deeply ashamed of my actions and recognize the pain they have caused. I take full responsibility for my misguided decision to continue communicating with Mr. Epstein.”
Andrew Mountbatten Windsor (L), Sarah Ferguson (C), Jack Lang (R)
Getty Images
Andrew Mountbatten-Windsor: Former prince, Duke of York
Andrew Mountbatten-Windsor, formerly known as Prince Andrew, Duke of York, was stripped of his titles and mansion in a statement from Buckingham Palace on Oct. 30. Mountbatten-Windsor settled a lawsuit filed by Epstein victim Virginia Giuffre in 2022 without admitting wrongdoing, and is being investigated by authorities in London for claims that he sent Epstein confidential trade documents. In a 2019 statement, Mountbatten-Windsor said, “I continue to unequivocally regret my ill-judged association with Jeffrey Epstein. His suicide has left many unanswered questions, particularly for his victims, and I deeply sympathise with everyone who has been affected and wants some form of closure. I can only hope that, in time, they will be able to rebuild their lives. Of course, I am willing to help any appropriate law enforcement agency with their investigations, if required.”
Ferguson’s charity, Sarah’s Trust, which focused on improving the lives of women and children, announced on Feb. 2 that it would be shutting down. The ex-wife of Andrew Mountbatten Windsor described Epstein as “a legend” and “the brother I have always wished for” in emails long after his first conviction in 2008. In a statement to the Guardian last September, a spokesperson for Ferguson said, “The duchess spoke of her regret about her association with Epstein many years ago, and as they have always been, her first thoughts are with his victims.”
Jack Lang: President of the Arab World Institute and former Culture minister of France
Lang, the highest-profile figure in France affected by the files, resigned as president of the Arab World Institute on Feb. 7 after leading the cultural center since 2013. Lang was mentioned more than 600 times in newly released files dating back to 2012 when he was introduced to Epstein by their mutual friend Woody Allen, according to The New York Times. French authorities have said they are investigating reports of financial connections between Lang and Epstein, with the financial prosecutor’s office probing Lang and his daughter, Caroline, on suspicion of “aggravated tax fraud laundering.” Lang has called the allegations against him “baseless,” and said the investigation “will bring much light on to the accusations that are questioning my probity and my honour.” His daughter denies any wrongdoing.
Juul resigned on Feb. 8 after Norway’s foreign ministry suspended her earlier in the week. She resigned after reports that her children and husband, Terje Rød-Larsen, were left $10 million in a will written by Epstein two days before his suicide. Juul said in early February that she had contact with Epstein through Rød-Larsen, but also said that she “should have been much more careful.”
Miroslav Lajčák: National security advisor to the prime minister of Slovakia and former president of the UN General Assembly
Lajčák resigned Jan. 31 after serving four Slavic governments. Messages from 2018 show Lajčák discussing women with Epstein, writing, “Why don’t you invite me for these games? I would take the ‘MI’ girl.” Lajčák reportedly told Radio Slovakia, “When I read those messages today, I feel like a fool.” He said in the same interview that he had shown “poor judgment and inappropriate communication … Those messages were nothing more than foolish male egos in action, self-satisfied male banter.” He added, “There were no girls … the fact that someone is communicating with a sexual predator does not make him a sexual predator.”
David Ross: Chair of New York’s School of Visual Arts
Ross, formerly the director of the Whitney Museum, resigned as the chair of the Master of Fine Arts in art practice at SVA on Feb. 3. Ross called Epstein “incredible” after he suggested an exhibit featuring girls and boys aged 14-25 titled “Statutory.” Ross told The New York Times that he regretted being “taken in” by Epstein’s claim that he had been the victim of a political frame-up because of his connection to Bill Clinton. “I continue to be appalled by his crimes and remain deeply concerned for its many victims,” he told the Times.
Rubinstein announced her resignation on Feb. 2 from the United Nations High Commissioner for Refugees after documents unveiled a 2012 family visit to Epstein’s private island. In an email, Rubinstein thanked Epstein for “an afternoon in paradise” on behalf of her children and herself. “I was aware of the verdict at the time of the visit. What has subsequently emerged about the extent of the abuse is appalling and something I strongly distance myself from,” Rubinstein told the Swedish newspaper Expressen.
Casey Wasserman:Founder, Chairman and CEO of Wasserman talent agency; Chairman of the LA28 Olympic and Paralympic Games
Wasserman, owner of a high-profile talent and marketing agency and the chairman of the 2028 Los Angeles Olympic and Paralympic Games, began the process of selling his company after emails between him and Maxwell from over 20 years ago were made public. Following the revelations, several clients, including Grammy winner Chappell Roan, announced they were leaving the agency. Wasserman said he “never had a personal or business relationship with Jeffrey Epstein” and that he’d “become a distraction” in a memo to his staff, which was reported by The Wall Street Journal. The Journal also reported, citing people familiar with the situation, that the committee organizing the LA Olympic Games had voted unanimously to keep Wasserman as chairman.
Steve Tisch: Chairman and co-owner of the New York Giants
The National Football League announced Feb. 2 that it will look into Tisch, a former film producer who has been the Giants’ executive vice president since 2005. Tisch was named over 400 times in the files, with one document showing that he asked Epstein whether women were “pro or civilian.” In a January statement to ESPN, Tisch said, “We had a brief association where we exchanged emails about adult women, and in addition, we discussed movies, philanthropy, and investments.” Tisch added, “I did not take him up on any of his invitations and never went to his island. As we all know now, he was a terrible person and someone I deeply regret associating with.”
Thorbjorn Jagland, Jes Staley, and Alex Acosta.
Stian Lysberg Solum | AFP | Tayfun Salci | Anadolu | Getty Images | Alex Brandon | AP
Jagland was charged with “aggravated corruption” on Feb. 12 after a police probe into his ties with Epstein. Jagland, who served as Norway’s prime minister from 1996 to 1997, is being investigated to see whether “gifts, travel and loans were received in connection with his position,” according to investigators. A 2014 email shows a planned visit for Jagland and his family to Epstein’s private island in the U.S. Virgin Islands. Jagland’s lawyers have said he “denies all the charges.”
Jes Staley: CEO of Barclays
Staley served as CEO of Barclays from October 2015 until his resignation in late 2021. Staley’s departure followed a probe by the UK’s Financial Conduct Authority into his relationship with Epstein. The regulator fined him more than $2 million and permanently banned him from holding a management role in the sector in 2023. In 2020, Staley said, “Obviously I thought I knew him well and I didn’t. For sure, with hindsight with what we know now, I deeply regret having any relationship with Jeffrey.”
Alex Acosta: U.S. Labor secretary
Acosta announced his resignation in a letter to President Donald Trump on July 12, 2019, following controversy over his striking a federal non-prosecution deal with Epstein in 2008 when he was the U.S. attorney for the Southern District of Florida. Acosta defended that deal — which had required Epstein to plead guilty to Florida state charges of soliciting a minor for prostitution — in six hours of testimony in September to the House Oversight Committee. “I testified for six hours. I’ll let the record speak for itself,” Acosta said after the hearing.
— CNBC’s Garrett Downs contributed to this report.
WATCH: Commerce Sec. Howard Lutnick admits visiting Epstein island during family vacation
The Warner Bros. logo is displayed on a water tower at Warner Bros. Studio on September 12, 2025 in Burbank, California.
Mario Tama | Getty Images
Warner Bros. Discovery‘s board is considering reopening sales talks with Paramount Skydance after recently receiving an amended offer with sweetened deal terms, Bloomberg News reported on Sunday, citing unnamed sources.
Warner Bros. in December agreed to sell both its film studio and HBO Max streaming service to Netflix for $27.75 per share. Paramount, which owns CBS and MTV, in December launched a hostile bid for Warner Bros., promising its shareholders $30 per share in an all-cash deal.
Last week, Paramount upped the ante, saying it would add a ticking fee of 25 cents a share to its offer for any delay in regulatory approval of the deal.
The ticking fee would be approximately $650 million in cash value per quarter for every quarter the deal has not closed by Dec. 31, 2026, CNBC.com previously reported.
Paramount also said it will cover a $2.8 billion termination fee paid to Netflix if the Warner Bros. deal is terminated. Paramount also said it will eliminate $1.5 billion in possible debt refinancing costs.
Both Paramount and Netflix have said they would be willing to raise their bids to secure the Warner Bros. deal, Bloomberg reported.However, this is the first time Warner Bros. has considered whether Paramount’s offer could either result in a better deal or prompt Netflix to offer better deal terms, according to the report.
Pinterest shares closed nearly 17% lower on Friday, after the company cited tariff-related shocks in disappointing fourth-quarter earnings.
The social media company’s Q4 earnings came in below analysts’ expectations, with revenue of $1.32 billion compared with LSEG consensus estimates of $1.33 billion. Net income for the quarter plunged 85% to $277 million from $1.85 billion the prior year.
It also recorded $541.5 million in adjusted earnings before interest, taxes, depreciation, and amortization, or EBIDTA, below the $550 million that analysts were projecting.
Pinterest expects first-quarter sales to be between $951 million and $971 million, which is also below analysts’ forecasts of $980 million.
CEO Bill Ready said the company “absorbed an exogenous shock this year related to tariffs” and was more exposed to reduced advertising spend from large retailers.
Pinterest also announced plans in January to lay off less than 15% of its workforce and cut back on office space, in a bid to go all in on AI. It said it’s “reallocating resources” to AI-focused teams and prioritizing “AI-powered products and capabilities.”
Pinterest one-day stock chart.
What analysts are saying
In a Friday note, Citi said it was downgrading shares of Pinterest from Buy to Neutral, “given more limited visibility from larger UCAN & EU advertisers due in part to tariffs and challenges across specific verticals,” such as home furnishing, the rebuilding of its go-to-market sales function as Pinterest broadens its advertiser base, and greater investments impacting margins.
Pinterest’s revenue performance is expected to continue to be “pressured near-term by macro-related headwinds,” such as tariffs and consumer spending, Goldman Sachs analysts said in a note on Friday.
But they added: “Despite these near-term headwinds, management remains optimistic around its long-term growth strategy centered around diversifying its advertiser base, automation, and performance-oriented objectives.
The analysts noted that user growth remains particularly strong amongst Gen Z users.
The company reported that its fourth-quarter global monthly active users jumped 12% year-over-year to 619 million, representing an all-time high.
— CNBC’s Jonathan Vanian contributed to this report
FILE PHOTO: White House counsel Kathryn Ruemmler listens as President Barack Obama speaks at an installation ceremony for FBI Director James Comey at FBI Headquarters in Washington, Monday, Oct. 28, 2013.
Charles Dharapak | AP
Top Goldman Sachs lawyer Kathryn Ruemmler said Thursday night that she will leave the investment bank at the end of June, a decision that came after a flurry of news articles highlighting documents detailing the former White House counsel’s often chummy email conversations with the notorious sex predator Jeffrey Epstein.
Goldman, for months, has defended Ruemmler after Congress and then the Department of Justice released emails between her and Epstein, as well as other documents related to investigations of him.
Ruemmler, who has been a key advisor to Goldman CEO David Solomon since joining the bank in 2020, told The Financial Times on Thursday, “I made the determination that the media attention on me, relating to my prior work as a defence attorney, was becoming a distraction.”
The FT first reported the 54-year-old’s decision to leave Goldman.
“Since I joined Goldman Sachs six years ago, it has been my privilege to help oversee the firm’s legal, reputational, and regulatory matters; to enhance our strong risk management processes; and to ensure that we live by our core value of integrity in everything we do,” Ruemmler said in a statement to CNBC.
“My responsibility is to put Goldman Sachs’ interests first,” Ruemmler said.
“Earlier today, I regretfully informed David Solomon of my intention to step down as Chief Legal Officer and General Counsel of Goldman Sachs as of June 30, 2026.”
Solomon, in a statement, said, “Throughout her tenure, Kathy has been an extraordinary general counsel, and we are grateful for her contributions and sound advice on a wide range of consequential legal matters for the firm.”
“As one of the most accomplished professionals in her field, Kathy has also been a mentor and friend to many of our people, and she will be missed. I accepted her resignation, and I respect her decision,” Solomon said.
Her announcement that she will leave Goldman comes nearly a week after The Wall Street Journal reported that Ruemmler was one of three people whom Epstein called on July 6, 2019, after being arrested by federal authorities on child sex trafficking charges at an airport in New Jersey.
The Journal’s report cites a handwritten set of notes by law enforcement about comments Epstein made inside an FBI vehicle after his arrest.
Those notes are among documents released in late January by the Department of Justice, CNBC has confirmed.
Other news articles detailed emails and documents showing how Epstein had made gifts to Ruemmler that included a Hermes bag, and other luxury items, such as a Fendi purse, spa visits, Bergdorf Goodman gift cards and flowers. On one occasion, she effusively thanked him, calling him “Uncle Jeffrey,” one email showed.
Ruemmler was a white-collar criminal defense lawyer at the firm Latham & Watkins during the years she was speaking with Epstein, whom she met in 2014.
An Aug. 14, 2014, email contained in the DOJ’s Epstein files shows how he asked her to represent his client, Bank Edmond de Rothschild.
“They have a justice department problem … like every other swiss bank,” Epstein wrote her.
Ruemmler took the bank as a client for Latham.
Ruemmler has said that she never represented Epstein, who killed himself in a New York federal jail weeks after his 2019 arrest.
Read more CNBC politics coverage
Ruemmler’s spokeswoman, Jennifer Connelly, told the Journal for its story last Friday, “These documents are consistent with what Ms. Ruemmler has repeatedly said: She knew Epstein when she was a criminal defense attorney and shared a client with him.”
“She was friendly with him in that context. She had no knowledge of any ongoing criminal conduct on his part,” Connelly said.
Ruemmler previously served as White House counsel under former President Barack Obama.
She is the latest person to lose a high-profile position because of her prior association with Epstein.
On Sunday, Morgan Sweeney resigned as chief of staff to British Prime Minister Keir Starmer, saying he took responsibility for advising Starmer to appoint Peter Mandelson as the United Kingdom’s ambassador to the United States. Starmer fired Mandelson from that post in September over disclosures about his connection to Epstein.
Last week, Brad Karp, chairman of the major corporate law firm Paul Weiss, resigned from that post after fallout over emails between him and Epstein. Karp is staying at the firm.
“In response to the Epstein emails, a Paul Weiss spokesman previously said, “Mr. Karp never witnessed or participated in any misconduct. Mr. Karp attended two group dinners in New York City and had a small number of social interactions by email, all of which he regrets.”
Karp said he was leaving the chairman’s post because of the distraction of the news stories.
In November, after a congressional committee released emails between Ruemmler and Epstein, Goldman Sachs spokesman Tony Fratto told CNBC, “These emails were private correspondence well before Kathy Ruemmler joined Goldman Sachs.”
“Kathy is an exceptional general counsel and we benefit from her judgment every day,” Fratto said at the time.
Ruemmler has previously told the Journal that she regrets ever knowing Epstein.
Among the new tranche of emails that the DOJ released in late January is one that Ruemmler sent Epstein in March 2019, four months before his arrest.
In that email, she offered advice on how to respond to criticism that he had previously received special treatment and a light punishment in 2008 because of his wealth and political connections when he avoided federal prosecution in exchange for pleading guilty in Florida state court to a charge of soliciting prostitution from an underage girl.
At the time Epstein sought Ruemmler’s advice, he had been the subject of a series of articles in the Miami Herald that were critical of the decision by federal prosecutors not to file charges against him in 2008. Epstein ended up serving just 13 months in state prison in Florida, but was allowed out to go to his office during the day for much of that time.
The subject line of the email thread, “From wapo,” suggests that Epstein was reaching out to Ruemmler because of an inquiry by The Washington Post about him.
Ruemmler wrote in the email: “Something like: … ‘The criticism is wrong and reflects a fundamental [misunderstanding] of both the facts underlying Mr. Epstein’s case and how it was [prosecuted] by both local and federal authorities.”
“Far from [receiving] a sweetheart deal, Mr. Epstein was subjected to a lengthy, aggressive, [and] highly unusual federal investigation for what were, in essence, local [offenses] of sexual solicitation,” Ruemmler wrote. “He accepted responsibility, served [time and] prison, and paid significant monetary settlements to the victims [involved].”
Ruemmler, in a bracketed section, also suggested saying something like, “But for his wealth, it is hard to imagine that Mr. Epstein … would have received the aggressive treatment that he did from [federal] prosecutors, and he certainly would never have been subjected to the [salacious] and malicious treatment by the media that he continues to receive more than 10 years after the case was resolved.”
American Airlines flight attendants’ union held a picket outside the company’s headquarters on Thursday pushing for new leadership at the carrier, which has lagged rivals Delta Air Lines and United Airlines in profitability and punctuality.
Ahead of the picket on Wednesday night, American CEO Robert Isom sought to calm frustrated employees and listed improvements the carrier expects this year, including a jump in profits as well as improvements to schedules and new cabins.
“We look forward to working with all of you to make it happen,” Isom said in a video message filmed at the airline’s Fort Worth, Texas headquarters.
The picket came days after the Association of Professional Flight Attendants, representing American’s 28,000 cabin crew members, issued a vote of no confidence in Isom, which the union said was its first such move. The chief executive was also criticized by the pilots’ union, which sought a meeting with the airline’s board, of which Isom is a member, to discuss the problems. Unions for pilots, flight attendants and mechanics have all recently said the company needs to do better to improve reliability and financial results.
The protest is an unusual move outside of contract negotiations.
The signals from the labor groups have increased pressure on Isom, who took the helm nearly four years ago, and American’s leadership team, which is investing in cabin upgrades, bigger airport lounges and other on-board products.
Last month, American forecast stronger revenue and profits for 2026 and said it expects to report adjusted earnings per share of as much as $2.70, up from an adjusted 36 cents last year.
American is in the middle of a revamp that it hopes will help revive profits with more modern airplane cabins that command higher fares, which is especially important as coach-class fares have dropped. It has also built bigger lounges and added free Wi-Fi for customers.
For the first 11 months of the year, American ranked eighth in punctuality with a 73.7% on-time rate, according to the Department of Transportation. It is now adjusting its schedules, including at its massive Dallas-Fort Worth International hub where it is spreading out flights more throughout the day.
But it has a long way to go. In 2025, American posted net income of $111 million compared with Delta’s $5 billion and more than $3.3 billion from United. The lower profits meant a smaller profit-sharing pool for employees, which staff members have complained about.
In a town hall with employees last month, Isom noted that American’s pilots, flight attendants and other groups have recently sealed new labor contracts that have meant higher wages compared with their counterparts at rival United. But he said he was disappointed by the profit-sharing.
The flight attendants have also said they were frustrated with American’s struggles to recover from major winter storms, which left some crew members without a place to sleep.
Picketing crew members on Thursday carried signs that said “everything froze, AA melted down,” referring to the disruptions, and “Failed Ops=Failed CEO,” nodding to the carrier’s operation.
“This airline is headed down a path that puts our careers at risk,” the flight attendants’ union said in a notice about the picket. “Now is the time for Flight Attendants to stand together and show up in protest. American Airlines needs real accountability, decisive action, and leadership that will put this airline back on a competitive path.”
Isom is also trying not only to win support of frontline crews but also to rally higher-ups. Last week, at Globe Life Field in Arlington, Texas, Isom spoke to about 6,000 managers about the years ahead as the airline turns 100.
“We’ve filled an entire Major League Baseball field with this proud and talented team. The best in the industry,” he said, according to a transcript of his remarks, which were seen by CNBC. “It’s incumbent on all of us to build on our progress … and to ensure that we grow profitability so American is around for the next 100 years.”
Restaurant Brands International on Thursday reported quarterly earnings and revenue that topped expectations, fueled by strong international growth.
Here’s what the company reported for the period ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: 96 cents adjusted vs. 95 cents expected
Revenue: $2.47 billion vs. $2.41 billion expected
Restaurant Brands reported fourth-quarter net income attributable to shareholders of $113 million, or 34 cents per share, down from $259 million, or 79 cents per share, a year earlier.
Excluding transaction costs, restructuring expenses and other items, the company reported adjusted earnings of 96 cents per share.
Net salesrose 7.4% to $2.47 billion. Stripping out currency fluctuations and sales from restaurants it plans to refranchise, Restaurant Brands’ organic revenue ticked up 6.5%.
The company’s same-store sales increased 3.1%, fueled by strong international growth.
Outside of the U.S. and Canada, Restaurant Brands’ same-store sales climbed 6.1%. International Burger King restaurants, which represents the bulk of the segment, saw same-store sales growth of 5.8%.
Analysts were projecting international same-store sales growth of just 3.7%, based on StreetAccount estimates.
And Restaurant Brands plans to keep growing its business abroad. In November, the company announced its plan to form a joint venture for Burger King China to accelerate expansion. Under the terms of the deal, which closed in late January, CPE, a Chinese alternative asset manager, owns roughly 83% of Burger King China. Restaurant Brands has retained a minority stake of about 17%, along with a seat on the board of directors.
Canadian coffee chain Tim Hortons reported same-store sales growth of 2.9%, although Wall Street was projecting an increase of 3.8%, according to StreetAccount. Tim Hortons accounted for 46% of Restaurant Brands’ overall revenue during the quarter.
Burger King reported overall same-store sales growth of 2.7%, topping StreetAccount estimates of 2.4%.
Popeyes was the laggard of Restaurant Brands’ portfolio. Its same-store sales fell 4.8%, a steeper decline than the 2.4% decrease forecast by Wall Street.
But the company has plans to revive the embattled fried chicken chain. In November, Restaurant Brands tapped Burger King veteran Peter Perdue to lead the chain’s U.S. and Canadian business; last month, the company also named Popeyes veteran Matt Rubin as the chain’s latest chief marketing officer.
Restaurant Brands plans to share more of its ideas to grow the business at its investor day in Miami on Feb. 26.
German luxury car manufacturer Mercedes-Benz Group on Thursday reported a steep drop in full-year profit and warned of challenging times ahead, following a year marred by intense competition from Chinese rivals and global tariff costs.
The automaker posted full-year operating profit of 5.8 billion euros ($6.9 billion) in 2025, reflecting a 57% drop from a year ago. The result was significantly lower than analyst expectations of 6.6 billion euros.
Mercedes-Benz Group said its earnings were shaped by foreign exchange headwinds and competition in China, alongside a reported 1 billion euro ($1.2 billion) hit in tariff costs.
“Amid a dynamic market environment, our financial results remained within our guidance, thanks to our sharp focus on efficiency, speed, and flexibility,” Ola Källenius, chairman of the board of management at Mercedes-Benz Group, said in a statement.
Mercedes-Benz Group said it planned further cost cuts in 2026 as well as a flurry of product launches, seeking to hit an 8% to 10% profit margin at its auto division.
Shares of the Munich-listed company fell 5.3% during morning deals.
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