Meta Platforms and state attorneys general have discussed a potential mid-trial settlement in a lawsuit accusing the firm of intentionally designing Facebook and Instagram to be addictive to young users, Bloomberg News reported Tuesday, citing people familiar with the matter.The reported talks come amid an ongoing federal court trial in California concerning claims brought by 29 states, marking a major test of allegations that social media companies have harmed youth. A federal appeals court declined to stay the trial just days before jury selection on August 12.Meta and the attorneys general of California, Colorado, Kentucky and New Jersey did not immediately respond to requests for comment outside regular business hours.Meta CEO Mark Zuckerberg wears the Meta Ray-Ban Display glasses, as he delivers a speech presenting the new line of smart glasses, during the Meta Connect event at the company's headquarters in Menlo Park (Reuters)Late on Tuesday, several state attorneys general issued advisories announcing upcoming press conferences. Among them, the office of Nevada Attorney General Aaron Ford stated it planned to outline "a major consumer protection settlement involving a leading technology company."The lawsuit is part of a broader wave of legal action from states, local governments, school districts and individuals alleging that Meta and other tech firms sparked a national youth mental health crisis.The federal trial addresses claims by the attorneys general of California, Colorado, Kentucky and New Jersey that Meta breached state consumer protection laws. Adam Mosseri, head of Instagram, departs the Ronald V. Dellums Federal Building & U.S. Courthouse after testifying on August 25, 2026 in Oakland (Getty)It also encompasses allegations from 29 states that the tech giant violated the federal Children's Online Privacy Protection Act by harvesting personal data from users known to be minors without parental consent, using the information to train generative AI and machine learning models.Meta has denied all claims, stating it works to safeguard young people on its platforms. The company previously argued that it could not have deceived consumers about whether its services were addictive, reasoning that "social media addiction" is not a recognized psychiatric condition.