Shares of Meta Platforms rose 4.96% to an intraday high of $598.36 apiece on the Nasdaq on Wednesday, August 26, after the company agreed to pay a maximum $16.68 billion to settle claims over alleged harm to young users of Facebook and Instagram.The stock, however, pared its gains shortly after. At 10:15 a.m. ET, Meta shares were trading at $568.245, down 0.32% on the Nasdaq.Under the settlement, Meta will also make major changes to Facebook and Instagram to resolve claims by states across the US that the company designed the platforms to addict children, misled consumers about their safety and improperly collected children's personal data.The settlement resolves claims brought by 29 US states and will end a federal trial that had been one of the highest-profile tests of allegations that social media companies harmed young users. ALSO READ: Meta reaches $16.68 billion settlement over social media harms to childrenUnder the settlement, the California-based company will impose daily usage limits and restrict nighttime usage by children who use Facebook and Instagram. Meta will also enhance measures to prevent children from accessing age-restricted content. Meta, however, has denied wrongdoing in agreeing to the settlement.ALSO READ: Meta reaches $16.68 billion settlement over social media harms to childrenThe settlement also resolves lawsuits filed by California, Illinois, New Mexico and Washington, D.C., over privacy claims related to the Cambridge Analytica scandal, in which the consulting firm collected personal data of millions of Facebook users. Those states will receive $459.3 million to resolve the lawsuits, according to a Reuters report.The claims were part of a broader wave of litigation brought by states, local governments, school districts and individuals alleging that Meta and other social media companies fueled a nationwide youth mental health crisis.The trial in federal court in Oakland, California, covered claims from California, Colorado, Kentucky and New Jersey that Meta violated their state laws protecting consumers. It also covered claims from 29 states that Meta violated the federal Children's Online Privacy Protection Act by collecting personal data from users it knew were children without parental notification or consent, and using the data to train machine learning and generative AI models.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)