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Meta and state attorneys general discuss potential settlement in teen case
The federal trial in Oakland, California, pits attorneys general from 29 states against Meta seeking monetary penalties and platform changes, with Meta estimating maximum adverse verdict exposure near $1.4 trillion.
Meta Platforms and state attorneys general have held talks about a possible settlement before a federal trial concludes in a lawsuit accusing the company of intentionally designing Facebook and Instagram to hook teenagers, according to Bloomberg, as cited by Yahoo Finance. The discussion comes as the trial enters its second week in Oakland, California.
The case has attorneys general from 29 states seeking both monetary penalties and court-ordered changes to how Meta runs its platforms, with Meta’s spokesperson saying there was no immediate comment. Representatives from the California attorney general’s office declined to comment, and officials in the other three lead states, Colorado, Kentucky, and New Jersey, did not respond to requests for comment.
People familiar with the settlement discussions told Bloomberg they asked not to be identified. Meta’s internal estimates place maximum penalty exposure from an adverse verdict at about $1.4 trillion, a figure that the report says is near the company’s total market capitalization, while a settlement would likely be far smaller.
At the center of the lawsuit are allegations of violations of state consumer protection laws and the federal Children’s Online Privacy Protection Act, with per-violation fines potentially compounding given the scale of Meta’s underage user base. The four lead states are also pursuing additional state-law claims, while all 29 states are pursuing federal claims tied to alleged data collection of minors without parental consent, and the opening week included testimony from Instagram chief Adam Mosseri, with Mark Zuckerberg expected to testify.