Meta has agreed to pay approximately 18 billion dollars as part of a settlement resolving a multistate lawsuit alleging the company intentionally designed addictive platforms that harmed young people’s mental health. The settlement ends a landmark legal battle that had reached trial in a California federal court, with just over 17 billion dollars going toward settling claims brought jointly by 29 states in 2023, while the remainder resolves claims from other states and territories.
As part of the agreement, Meta has committed to making changes across its platforms for teenage users of Facebook and Instagram nationwide, including establishing daily usage time limits and nighttime blocks, according to court filings. The settlement was reached during an ongoing trial in Oakland, California, where witnesses including Instagram head Adam Mosseri had been questioned as part of proceedings examining claims that Meta improperly captured data from minors, designed its platforms to be addictive to children, and misled the public about their safety.
Meta has consistently denied that its platforms harm children, arguing the company has invested heavily in safety features, and previously characterized the states’ claims as unsubstantiated. The company did not admit wrongdoing as part of the settlement. In a blog post addressing the agreement, Meta said ensuring teens have a safe and productive experience on its platforms is an absolute imperative, adding that it partnered with state attorneys general to help set a new industry standard. The settlement followed Meta losing two similar cases earlier this year, including a March 2026 New Mexico jury verdict that found the company’s platforms harmful to children’s mental health and in violation of state consumer protection law.
The settlement does not resolve the broader wave of litigation facing the social media industry, with Meta, Snapchat parent Snap, YouTube parent Alphabet, and TikTok parent ByteDance still facing thousands of lawsuits in federal and state courts over claims they knowingly designed addictive platform features targeting children and teens. Around 30 states have filed lawsuits against these companies in state courts, with a separate trial against Meta ongoing in Nashville since July, while federal cases remain consolidated before a US District Judge in Oakland, covering lawsuits brought by individuals, school districts and state governments across the country.
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