Meta faces trial over child safety; damages could reach $1.4 trillion

Meta Platforms is set to face a consequential trial in California this week, as a lawsuit accuses the social media giant of contributing to a youth mental health crisis through its platform designs. Dozens of states are pursuing financial damages that, in theory, could total as much as $1.4 trillion, alongside demands for changes to how Facebook and Instagram operate.

The lawsuit alleges that Meta knowingly designed features to foster addiction in children and routinely collected data on minors under 13 without parental consent, in violation of federal law. Meta disputes these allegations, stating that trial evidence will demonstrate its commitment to supporting young people.

The trial in federal court in Oakland features California, Colorado, Kentucky, and New Jersey as lead plaintiffs, representing a coalition of 29 states. This case is seen as pivotal, especially following recent losses for Meta in other cases related to child and teen harm. The company has attributed part of a recent profit decline to $2.4 billion in legal expenses.

While the $1.4 trillion figure, disclosed by Meta, is an astronomical sum—nearly matching its market capitalization—legal experts deem it unlikely to be awarded in full. Such an amount would likely lead to bankruptcy for Meta. However, the outcome could still mandate significant structural changes to the company's platforms, impacting how they function for young users.