Meta Platforms and attorneys general from 29 US states have been discussing a potential settlement in the landmark case alleging the company designed addictive features in Facebook and Instagram that harmed teen mental health. The talks surfaced while a federal trial was already underway in Oakland, California, presided over by Judge Yvonne Gonzalez Rogers.

The trial kicked off on August 18, and settlement discussions were reported on August 25-26.

The scale of potential liability

Meta itself has estimated its potential exposure could reach $1.4 trillion. The states’ estimate is around $200 billion.

The states allege that Meta’s platform design is inherently addictive and that the company violated the Children’s Online Privacy Protection Act, better known as COPPA, in its handling of children’s data. COPPA sets strict rules for how companies collect and use personal information from users under 13.