Meta discusses potential settlement over teen social media harm case amid billion-dollar liability estimates

Meta Platforms and attorneys general from 29 US states have been discussing a potential settlement in the landmark case alleging the company designed addictive features in Facebook and Instagram that harmed teen mental health. The talks surfaced while a federal trial was already underway in Oakland, California, presided over by Judge Yvonne Gonzalez Rogers. The trial kicked off on August 18, and settlement discussions were reported on August 25-26. The scale of potential liability Meta itself has estimated its potential exposure could reach $1.4 trillion. The states’ estimate is around $200 billion. The states allege that Meta’s platform design is inherently addictive and that the company violated the Children’s Online Privacy Protection Act, better known as COPPA, in its handling of children’s data. COPPA sets strict rules for how companies collect and use personal information from users under 13. Meta has denied wrongdoing, pointing to safety measures it has rolled out, including a feature called Teen Accounts designed to limit certain risks for younger users. A pattern of costly verdicts In March 2026, a jury in New Mexico delivered a $375 million verdict against Meta. That was ...