Meta is discussing a potential settlement with 29 US attorneys general in a federal case over features deemed addictive on Facebook and Instagram, causing harm to teen mental health. Liability estimates vary significantly: Meta values its exposure at up to $1.4 trillion, while the states estimate around $200 billion. Plaintiffs allege that Meta knowingly designed addictive platforms and violated the Children’s Online Privacy Protection Act. This case follows costly verdicts against the company: $375 million in New Mexico in March 2026 and $567 million in August 2026. Over 1,300 school districts and more than 40 states have initiated related claims against social media companies.
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