Meta’s next trial may end in $1.4 trillion in damages – CNBC TV18

Meta’s next trial may end in $1.4 trillion in damages

The states of California, Colorado, Kentucky and New Jersey filed the lawsuit in 2023 after investigating how Facebook and Instagram affect young users.

By CNBCTV18.com  August 18, 2026, 10:38:01 AM IST (Updated)

Meta’s next trial may end in $1.4 trillion in damages
Meta is set to face a major trial over claims that Facebook and Instagram were designed to keep young users hooked. The company is also accused of not warning parents and the public about the possible risks to children.

The trial is set to begin with opening statements Tuesday at the US District Court for the Northern District of California in Oakland. Jury selection was completed last week. The trial is expected to last four to six weeks.

Meta could face up to $1.4 trillion in damages if the states succeed with their claims.

The case has been brought by attorneys general from California, Colorado, Kentucky and New Jersey. It was brought by a coalition of 29 states, with the remaining states expected to face separate trials in the future.


The states filed the lawsuit in 2023 after investigating how Facebook and Instagram affect young users. They claim Meta made its platforms addictive and did not properly tell parents and the public about the possible risks.

The states have also accused Meta of violating federal law by collecting personal information from children.

“Meta designed a dangerous product for young users, knew it to be dangerous, and then lied to children, families, and the community about how dangerous it was,” California Attorney General Rob Bonta issued a statement last week, according to Fox News.

Meta has denied the allegations. The company has called the claims ‘unsubstantiated’ and said the financial demands from the states are far too high.

Meta has also argued that ‘social media addiction’ is not an officially recognised psychiatric diagnosis. The company says the states have not shown that people were actually misled or that Meta caused the harm being claimed.

The company’s spokesperson in a statement to Fox News said, “Limited claims are unsubstantiated and their financial demands are vastly disproportionate.”

They further said, “The AGs offer no proof anyone in their states was misled, claim benign features like having an additional Instagram account somehow harmed their residents, and attempt to penalize Meta for industry-wide challenges like age verification. Rather than sticking to the facts or the law, the states have instead decided to chase an outlandish payout.”

Meta is already facing a major penalty in a separate case in New Mexico. Earlier this month, a court ordered the company to pay $567 million and improve protections for teenagers on Facebook and Instagram.

That came after another ruling in March that ordered Meta to pay $375 million for violating state law. Together, the penalties in that case have reached nearly $942 million.


Original source: https://www.cnbctv18.com/technology/

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