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Business

Meta heads to child safety trial facing financial damages as large as $1.4 trillion

Fortune ·
Meta heads to child safety trial facing financial damages as large as $1.4 trillion

Of the thousands of lawsuits Meta faces over child safety on its platforms, none may be more consequential than one going to trial this week in California.

States are seeking extensive financial damages that could, in theory, total as much as $1.4 trillion, plus changes to how the company operates Facebook and Instagram.

The lawsuit accuses the social media giant of contributing to the youth mental health crisis by knowingly and deliberately designing features that get children addicted to its platforms.

It also claims that Meta routinely collects data on children under 13 without their parents’ consent, in violation of federal law.

“Meta has harnessed powerful and unprecedented technologies to entice, engage, and ultimately ensnare youth and teens.

Its motive is profit, and in seeking to maximize its financial gains,” the lawsuit says.

Dozens of states filed the lawsuit three years ago.

The trial set to begin Tuesday in federal court in Oakland, California, features four of the states as plaintiffs — California, Colorado, Kentucky and New Jersey.

The other 25 states are expected to have trials later.

Meta said it disputes the allegations, and the trial evidence will show its commitment to supporting young people.

“We’ve listened to parents, worked with experts and law enforcement, and conducted in-depth research to understand the issues that matter most,” the company said in a statement.

States seek to land a major blow against Meta For Meta, which already lost two pivotal cases over harms to children and teens this year, the stakes are high.

The company reported a rare profit decline last month, in part due to $2.4 billion in legal expenses.

The $1.4 trillion figure, which Meta disclosed in a legal filing, is almost as high as the Menlo Park, California, company’s entire market capitalization — that is, the value of all its outstanding shares on the stock market.

Read the full article on Fortune ›

5News aggregated this summary from the outlet’s public feed. The full article, with all the context, is on fortune.com — the content belongs to Fortune.

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