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Meta Platforms and attorneys general from 29 US states have been discussing a potential settlement in the landmark case alleging the company designed addictive features in Facebook and Instagram that harmed teen mental health. The talks surfaced while a federal trial was already underway in Oakland, California, presided over by Judge Yvonne Gonzalez Rogers.
The trial kicked off on August 18, and settlement discussions were reported on August 25-26.
The scale of potential liability
Meta itself has estimated its potential exposure could reach $1.4 trillion. The states’ estimate is around $200 billion.
The states allege that Meta’s platform design is inherently addictive and that the company violated the Children’s Online Privacy Protection Act, better known as COPPA, in its handling of children’s data. COPPA sets strict rules for how companies collect and use personal information from users under 13.
Meta has denied wrongdoing, pointing to safety measures it has rolled out, including a feature called Teen Accounts designed to limit certain risks for younger users.
A pattern of costly verdicts
In March 2026, a jury in New Mexico delivered a $375 million verdict against Meta. That was followed by a $567 million court order in August 2026.
Separately, Meta paid $9 million as part of a $27 million settlement with Breathitt County Schools in Kentucky back in May 2026.
Over 1,300 school districts and more than 40 states have initiated related claims against social media companies.
What the states actually want
The 29 states involved in the federal case are also pushing for changes to how Meta’s platforms operate, particularly features that critics say are engineered to keep teenagers scrolling. Think infinite scroll, notification systems optimized for re-engagement, and algorithmic recommendations that can funnel young users toward harmful content.
The states’ argument essentially boils down to this: Meta knew its products were hurting kids, internal research told them so, and the company chose growth over safety. That framing gained significant traction after a former Meta employee leaked internal documents in 2021 showing the company’s own researchers had flagged Instagram’s negative effects on teen mental health.
Teen Accounts apply default privacy settings and restrict certain content for users under 18.
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English (US) ·