Child protection trial: Meta pays 16.68 billion for settlement

Meta also agreed to make changes nationwide for teen users of Facebook and Instagram, including daily usage limits and nightly bans, court documents show.

Waiver of appeal

According to the US broadcaster, the state of California could CNBC will receive between $1.5 billion and $2.1 billion if the court formally approves the settlement, according to an announcement from California Attorney General Rob Bonta.

“Today we reached a settlement with Meta that will make social media less dangerous for our children and will make a tremendous difference for children and their families,” Bonta said in a statement. “Meta is committed to making sweeping changes that will reduce the risk of harm from its platforms – within months.” Once the court officially issues the “final judgment,” all parties waive their right to appeal, according to the legal filing.

The settlement comes amid the second week of the trial, which is being held in federal court in Oakland and led by California Attorney General Rob Bonta and the attorneys general from Colorado, New Jersey and Kentucky. They represent a bipartisan group of 29 attorneys general in a joint proceeding that arose from a 2023 lawsuit.

Instagram CEO Adam Mosseri testified Tuesday that he does not instruct his employees to withhold certain product safety and child protection information from him in order to protect him and mislead the public.

Because the federal trial is taking place in Meta’s home state of California and involves multiple states, the implications are particularly high for the Mark Zuckerberg-led social media giant.

Mental health crisis

The Menlo Park, California-based company denied any wrongdoing when it agreed to the settlement. Meta shares rose by 4.4 percent in pre-market trading, currently at three percent.

The lawsuits were part of a broader wave of litigation filed by states, local governments, school districts and individuals accusing Meta and other social media companies of sparking a nationwide youth mental health crisis.

The federal lawsuit involved lawsuits from California, Colorado, Kentucky and New Jersey that accused Meta of violating their states’ consumer protection laws.