Meta, states discuss mid-trial settlement in teen addiction case

Meta Platforms and state attorneys general from 29 U.S. states are engaged in settlement discussions before the trial concludes, according to Bloomberg. The ongoing lawsuit alleges that Meta intentionally designed Facebook and Instagram to be addictive to teenagers. The trial, currently in its second week in federal court in Oakland, California, sees the state attorneys general seeking both monetary penalties and changes to Meta's platform operations.

Meta estimates the maximum penalty exposure could reach $1.4 trillion, though a settlement would likely be much smaller. The lawsuit centers on allegations of violating state consumer protection laws and the federal Children's Online Privacy Protection Act, which could lead to significant fines due to the massive number of underage users.

Meta denies the claims, calling the attorneys general's demands for major design changes and an "outrageous payout" unworkable. The trial has also heard testimony from Meta executives, including Instagram's Adam Mosseri and former employees involved in platform design. Meta's CEO, Mark Zuckerberg, is expected to testify. The case is one of over 3,000 federal lawsuits against Meta and other social media firms consolidated before U.S. District Judge Yvonne Gonzalez Rogers.