Meta settles multistate lawsuit over youth addiction, but legal battles continue

Meta has reached a settlement with dozens of U.S. states, resolving a major lawsuit that accused the company of designing addictive features on Instagram and Facebook that harm children's mental health. The agreement, announced Wednesday, calls for Meta to pay up to $18 billion and implement new safety measures for young users, including guardrails on platform operations.

The deal halted a landmark trial in federal court in Oakland, California, which had been expected to last six weeks. The plaintiffs — California, Colorado, Kentucky, and New Jersey — were among the states that filed a lawsuit three years ago targeting Meta's design choices. The settlement also ends similar trials planned for 25 other states and a separate case in Tennessee, where the attorney general's office had filed its own lawsuit.

Tennessee Attorney General Jonathan Skrmetti said the settlement delivers "record-setting money" for the state's Children's Digital Protection Fund and imposes "unprecedented protections for kids." He and other attorneys general described the issue as an "industrywide problem" and urged other social media platforms to adopt similar safety measures.

Not all states joined the settlement. New Mexico had already won a court case against Meta, with a jury finding thousands of violations and ordering $375 million in penalties. In August, a judge added $567 million and imposed new rules, including a 90-hour monthly time limit for users under 18 and mandatory warnings. Meta has said it disagrees with that verdict. Florida also opted out, with its attorney general saying the settlement was not tough enough.

Beyond state actions, hundreds of school districts have sued social media companies for costs related to student mental health issues. A Kentucky school district case, selected as a bellwether among 1,200 similar suits, was settled by Meta, TikTok, Snap, and YouTube before trial. Plaintiffs' attorneys said they remain focused on pursuing justice for the remaining districts.

In another first-of-its-kind case, a jury in Los Angeles found Meta and YouTube liable for social media addiction, awarding $6 million to a plaintiff who testified that her addiction worsened her mental health. TikTok and Snapchat settled before trial, while Meta and YouTube have appealed.

Many other lawsuits are pending, including those filed by families of children who died by suicide or accidental overdoses linked to social media use. The legal landscape remains active as courts and regulators continue to scrutinize how platforms affect young users.