California · Meta · Facebook · Instagram · Fortune Technology
Meta heads to child safety trial facing financial damages as large as $1.4 trillion
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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.
Key facts
- 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
- If Meta loses the trial, the court would have wide discretion over the size of any financial penalty, and legal experts say anything close to $1.4 trillion would be unlikely
- A sanction of that size has no analog in the history of consumer protection enforcement,” Meta said in a July 6 filing with the U.S. District Court for the Northern District of 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
Summary
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. “Meta has harnessed powerful and unprecedented technologies to entice, engage, and ultimately ensnare youth and teens. Dozens of states filed the lawsuit three years ago.