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Meta and state attorneys general discuss possible mid-trial settlement
The trial in Oakland, California, enters its second week, with 29 states seeking major penalties and mandatory platform changes and Meta facing potential fines up to $1.4 trillion if it loses.
Meta Platforms and attorneys general from 29 states have discussed a possible settlement during the ongoing teen social media trial, according to people familiar with the talks, with Meta and legal officials declining immediate comment.
The case is being heard in federal court in Oakland, California, and the states are seeking both large financial penalties and mandatory changes to how Meta runs Facebook and Instagram. Meta shares were up as much as 1.7% in premarket trading Wednesday.
The states allege Meta designed its platforms to encourage compulsive and prolonged use by teens while misleading consumers about safety features. They also allege violations of state consumer protection laws and federal privacy law, including allegations related to collecting data from users under 13 years old under the Children’s Online Privacy Protection Act.
Meta’s own calculations estimate that a loss at trial could lead to penalties as high as $1.4 trillion, a figure described as near its market capitalization, though a settlement would likely be far smaller. During the first week of testimony, jurors heard from Instagram head Adam Mosseri and from current and former Meta employees, and lawyers said they expect Mark Zuckerberg to testify.