Meta Faces $1.4 Trillion Lawsuit Over Alleged Harm to Young Users in US States

Meta is facing a historic $1.4 trillion lawsuit filed by four US states, California, Colorado, Kentucky, and New Jersey, alleging that Facebook and Instagram were deliberately designed to foster addictive use among young people and mislead the public about platform safety. The amount sought nearly matches Meta's market value of approximately $1.5 trillion. Meta disclosed this unprecedented penalty figure in a court filing on Monday, responding to the plaintiffs' method of calculating potential fines based on the number of alleged violations multiplied by state statutory penalties.

The lawsuit, set for trial in August in Oakland, California, accuses Meta of deceptive practices regarding the safety of its platforms and targeting minors. Meta denies the allegations, arguing that the proposed sanction is unprecedented in consumer protection law enforcement and that "social media addiction" is not a recognized psychiatric condition. The company also disputes evidence that it misled users about the addictiveness of its platforms.

In parallel, 29 additional states have filed a federal lawsuit against Meta, primarily accusing it of violating the federal Children's Online Privacy Protection Act by collecting data from children without proper parental consent. Last month, a judge rejected Meta's motion to dismiss the case, citing factual disputes over whether the platforms are addictive and if Meta intentionally designed them to target children.

Meta, along with Alphabet (Google's parent), Snap, and ByteDance, faces thousands of similar lawsuits alleging that their platforms' features increase usage among minors and harm their mental health. In March, a New Mexico jury found Meta liable for misleading consumers and awarded $375 million in damages, with further rulings pending on additional compensation and mandated platform changes.

The upcoming trial will address both the safety and privacy claims, marking a significant legal challenge for Meta amid growing scrutiny of social media's impact on youth.