A federal trial accusing Meta Platforms of designing Facebook and Instagram to encourage addictive use among teenagers entered its second week, with 29 U.S. states pursuing financial penalties and platform modifications.
The coalition, led by California, Colorado, Kentucky, and New Jersey, alleges Meta knowingly developed features that prolonged compulsive use by young people while misrepresenting safety measures. The states are seeking financial penalties and operational changes, though a settlement could limit liability exposure.
Meta has estimated potential penalties at up to $1.4 trillion if it loses the case, calling the states’ demands for design changes and payouts unreasonable. The company denies the allegations, and testimony from Instagram head Adam Mosseri and current and former employees has been presented. Meta CEO Mark Zuckerberg is also expected to testify.
The trial follows broader scrutiny of social media’s impact on youth mental health. While a settlement would likely involve a substantially smaller amount, the case underscores regulatory and legal risks for the company. Meta’s stock closed at $570.05 on Tuesday, up 1.97%, with pre-market trading at $595.01, up 4.38%.
