Meta Platforms has reached a settlement with 29 U.S. states to resolve allegations that its social media platforms, including Instagram and Facebook, were designed to addict children and misled users about safety risks. The agreement, announced during a California federal court trial, avoids a high-profile legal test of claims under the federal Children’s Online Privacy Protection Act.
The settlement follows a series of legal setbacks for Meta in related cases. In March, a New Mexico jury ordered the company to pay $375 million in a separate lawsuit alleging consumer deception. A federal judge later imposed an additional $567 million penalty, ruling that Meta created a public nuisance. Separately, a Los Angeles jury awarded $6 million in damages to an individual plaintiff who alleged the company’s platforms contributed to mental health issues.
The consolidated federal cases in Oakland, presided over by U.S. District Judge Yvonne Gonzalez Rogers, involve claims from California, Colorado, Kentucky, and New Jersey, among others. These states had sought up to $200 billion in penalties, along with injunctive relief, according to court filings. Meta had previously warned in a pre-trial submission that the potential penalties could reach $1.4 trillion, though the states later clarified their demands.
The settlement also follows a $27 million agreement reached with Breathitt County School District in Kentucky, which was set to receive funds from the first federal court trial case. The resolution comes as Meta faces broader scrutiny over youth safety and data privacy practices across its platforms. The company has consistently denied the allegations, arguing that social media addiction is not a recognized psychiatric condition and that it has implemented safeguards for younger users.
The agreement avoids a trial that was scheduled to begin with jury selection on August 12, days after a federal appeals court declined to halt proceedings. Separate litigation in Nashville, Tennessee, remains ongoing, with the state pursuing claims against Meta.
