According to sources, Meta Platforms Inc. has discussed with the attorneys general of multiple U.S. states the possibility of settling during the trial of a high-profile lawsuit. The case alleges that Meta intentionally designed Facebook and Instagram to make them addictive for teenage users.
The case is now in its second week of hearings at the federal court in Oakland, California. It poses a significant risk to Meta: senior legal officials from 29 states, acting on behalf of the public, are seeking to impose hefty fines and to require Meta to change how the platform operates. Because the matter involves sensitive information, the sources requested anonymity.
A Meta spokesperson has not yet commented on the matter. A representative from the California attorney general’s office declined to comment. Representatives from the other three states leading the lawsuits—Colorado, Kentucky, and New Jersey—also did not immediately respond to requests for comment.
These states allege the company violated state consumer protection laws and federal privacy laws, noting that fines specified in the law can balloon rapidly when multiplied by the number of millions of young Instagram and Facebook users.
Meta denied the states’ allegations and accused the state attorneys general of demanding unreasonable design changes and “excessive remedies.”
According to Meta’s own estimates, if it loses, it could face penalties of up to $1.4 trillion—an amount close to its market value, unheard of in legal history. If a settlement is reached, the figure would likely be far lower.