Meta agrees to pay up to $16.7bn to settle social media case

Meta Platforms and state attorneys general from California, Colorado, Kentucky, and New Jersey are reportedly considering a mid-trial settlement in a lawsuit alleging that the company deliberately designed Facebook and Instagram to be addictive for young users, according to Bloomberg News. The proposed settlement comes as a federal court trial in California examines claims brought by 29 states, which is seen as a significant test of accusations that social media firms have harmed young users.

Just prior to jury selection commencing on August 12, a federal appeals court decided not to halt the trial. Meta and the attorneys general of the four mentioned states did not immediately comment on the matter. In response, several state attorneys general issued advisories notifying the media of planned press conferences, including Nevada Attorney General Aaron Ford, who stated his office would announce a major consumer protection settlement involving a leading technology company.

The lawsuit is part of a growing wave of legal action brought by states, local governments, school districts, and individuals who allege that Meta and other social media companies contributed to a nationwide youth mental health crisis. The federal court trial addressed claims from the attorneys general of Colorado, California, Kentucky, and New Jersey that Meta violated state laws protecting consumers.