Meta Platforms Inc will pay up to $16.68 billion to resolve claims brought by 29 U.S. states that its Facebook and Instagram platforms harmed children, according to a court filing cited by Reuters.
The settlement, which covers all state claims nationwide, resolves litigation alleging that Meta deliberately designed its platforms to maximize engagement among children and teenagers. The states contended that the company had internal knowledge of potential mental-health and safety risks associated with its services.
As part of the agreement, Meta will implement nationwide changes for teen users, including default daily time limits and nighttime restrictions on Instagram and Facebook. The company denied any wrongdoing in connection with the settlement.
Meta’s shares rose more than 4% in pre-market trading on Wednesday, following the announcement. The stock closed at $570.05 on Tuesday, up $11.03, or 1.97%. Pre-market trading showed shares at $574.07, an increase of $4.02, or 0.71%.
The settlement concludes a legal dispute that spanned federal and state courts, addressing claims brought by multiple states over the alleged harm caused by Meta’s platforms to young users.
