Meta Platforms is in settlement talks with 29 U.S. states during the second week of a federal trial in Oakland, California, where the company faces allegations that Facebook and Instagram were designed to encourage compulsive use among teenagers.
The states, led by California, Colorado, Kentucky and New Jersey, claim Meta deliberately developed features to prolong engagement while misrepresenting safety measures. The case centers on whether the company’s design choices contributed to addiction-like behavior in young users.
Meta has estimated potential exposure at up to $1.4 trillion if the lawsuit proceeds to a ruling, though any settlement would likely involve a substantially lower figure. The company has denied wrongdoing, arguing that the proposed design changes and financial penalties are unjustified.
Testimony during the trial has included statements from Instagram head Adam Mosseri and current and former Meta employees. Meta CEO Mark Zuckerberg is expected to testify as the proceedings continue.
The outcome could result in operational changes to Meta’s platforms and financial penalties, though no agreement has been finalized. The case remains ongoing as both sides negotiate potential terms.
