US states seek US$200bil penalty in blockbuster Meta lawsuit

A coalition of US states plans to seek approximately US$200 billion in damages against Meta during a landmark trial, which is set to begin on Tuesday, August 18. The states, including California, Colorado, Kentucky, and New Jersey, accuse Meta of intentionally designing Facebook and Instagram to be addictive for children. During the trial, Meta will have the opportunity to present its defense, which could potentially last for six weeks.

Meta had previously estimated the financial penalties could reach US$1.4 trillion, nearly equivalent to its entire market value, which is around US$1.5 trillion. However, the states' lawyer emphasized that they are seeking a smaller sum, closer to US$193 billion, explaining that the larger figure was likely used for shock value. The states will ask a judge to force Meta to make changes to its core apps and impose a substantial financial penalty.

The trial in Oakland, close to San Francisco, will commence with opening statements. Meta strongly disagrees with the allegations and is confident that the evidence will demonstrate its commitment to the safety and well-being of young users. A federal judge has ruled that Meta will not be allowed to block Arturo Bejar, a former employee who testified against the company, from testifying. Bejar is accused of destroying evidence during a previous trial in New Mexico, where Meta lost.