Meta has agreed to pay up to $17.1 billion to resolve a federal lawsuit brought by U.S. states over claims that its Facebook and Instagram platforms were designed to addict children, according to The New York Times.
The settlement, reported on Wednesday, ends a landmark trial that had been underway in federal court. The New York Times, citing the agreement, said the payout could reach $17.1 billion. CNBC reported the figure as $16.7 billion, while NPR put the total at roughly $17 billion. The discrepancy in the reported amounts reflects the final terms not being uniformly stated across outlets.
The case centered on allegations that Meta knowingly engineered its social media products to keep young users engaged, leading to harmful addiction. The trial, which involved a coalition of states including California, was seen as a major test of tech companies' liability for the mental health effects of their platforms on minors.
According to Fox Business, the settlement resolves claims that the company’s apps harmed children. CNN noted that the deal marks a significant legal victory for the states, which had pushed for stricter oversight of how platforms target younger audiences.
Meta has not admitted wrongdoing as part of the settlement, per the reports. The company has previously defended its safety features and parental controls, though the specifics of the agreement’s terms beyond the financial payout were not detailed in the available reporting.
The settlement avoids a potentially lengthy appeals process and sets a precedent for how social media firms may be held accountable for youth mental health concerns. What to watch next is how the funds will be distributed and whether similar lawsuits against other platforms will follow.
