Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeInformation TechnologyNewsMeta, U.S. states have discussed settling teen social media caseSocial media companies are facing a global backlash over concerns that they profit at the expense of young usersAuthor of the article:Meta has denied the states’ allegations and accused the attorneys general of seeking unreasonable design changes and an “outlandish payout.” Photo by Onur Dogman/SOPA Images/LightRocket via Getty ImagesMeta Platforms Inc. and state attorneys general have discussed a possible mid-trial settlement of a blockbuster case accusing the company of deliberately designing Facebook and Instagram to addict teens, people familiar with the matter said.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe trial, now in its second week in federal court in Oakland, California, poses an enormous risk for Meta as the top legal officers of 29 states are seeking both massive financial penalties on behalf of the public and mandatory changes to how the platforms operate. The people familiar with settlement talks asked not to be identified due to their sensitivity.A spokesperson for Meta had no immediate comment. A representative of the attorney general’s office in California declined to comment. Representatives of the other three states leading the case, Colorado, Kentucky and New Jersey, didn’t immediately respond to requests for comment.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againMeta shares gained as much as 1.7 per cent in premarket trading Wednesday as of 8:20 a.m. in New York. The stock has fallen nearly 14 per cent so far this year, on pace for its first annual decline since 2022.The states have alleged violations of state consumer protection and federal privacy laws — which carry fines that add up quickly when multiplied by millions of young Instagram and Facebook users.Meta has denied the states’ allegations and accused the attorneys general of seeking unreasonable design changes and an “outlandish payout.”By Meta’s own calculations, a loss at trial could saddle it with penalties of as much as US$1.4 trillion, an amount close to its market capitalization and unheard of in the annals of legal history. A settlement would likely amount to a far smaller sum. Adam Mosseri, head of Instagram, arrives at court in Oakland on Aug. 25. Photo by Jason Henry/BloombergDuring the first week of testimony at the trial, jurors heard from Instagram head Adam Mosseri and a collection of current and former Meta employees who helped design its social media platforms and study how teen users interact with tools designed to cut down on problematic use.Lawyers have said they also expect to call Meta founder and chief executive Mark Zuckerberg to testify.The four attorneys general spearheading the case alleged under their separate state laws that Meta knowingly designed features that encouraged compulsive and prolonged use of its platforms by young people, while simultaneously misleading consumers about safety features.The broader bipartisan group of 29 states accused the company of collecting data from users under 13 years old in violation of the federal Children’s Online Privacy Protection ActSocial media companies are facing a global backlash over concerns that they profit at the expense of young users, for whom a growing body of research shows that excessive screen time is dangerously unhealthy.While authorities from Australia to Europe have enacted or proposed outright bans for youths in the last year, legislative crackdowns in the United States have had limited success, turning the courts into a pivotal battleground.Meta, Alphabet Inc.’s Google, Snap Inc. and TikTok all face billions of dollars in potential exposure from more than 3,000 personal injury claims by individuals and families in the U.S., and about 1,300 more lawsuits by public school districts across the nation.—With assistance from Alexandra S. Levine, Riley Griffin and Isaiah Poritz. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.