Figma shares fall 5.16% intraday amid insider selling and class action lawsuit over AI data usage.

Figma (FIG) fell 5.16% intraday amid mounting concerns over insider selling, legal risks, and downgraded analyst expectations. The stock has declined nearly 19% since its Q3 earnings, with executives, including CEO and CTO, offloading millions in shares, signaling potential lack of confidence in near-term prospects. A class-action lawsuit alleging misuse of user data for AI training further exacerbated sell-off pressure, raising regulatory and reputational risks. Meanwhile, Morgan Stanley cut its price target to $48 from $65, reflecting reduced optimism amid rising competition and valuation concerns. These factors, combined with ongoing insider trades and legal uncertainties, drove the intraday selloff despite recent revenue milestones and AI partnership announcements.