Meta Platforms faces potential damages as high as $1.4 trillion as a landmark child-safety trial opens in Oakland on Tuesday, after a coalition of US states launched proceedings seeking a record penalty and an overhaul of Facebook and Instagram.
The Ninth Circuit cleared the path for thousands of addiction lawsuits against Meta, Snap, Alphabet, and TikTok by ruling that Section 230 provides a defense against liability rather than blanket immunity from suit. The states demand Meta eliminate 'like' counts and infinite scroll, features internal research showed drove social comparison among young users. Judge Yvonne Gonzalez Rogers will preside in the US District Court for the Northern District of California, with testimony expected from CEO Mark Zuckerberg and Instagram CEO Adam Mosseri.
The trial follows a New Mexico verdict declaring Meta a public nuisance, resulting in $942 million in combined penalties and abatement funding. Meta ended the second quarter with $90.26 billion in cash and marketable securities but recognized $2.4 billion in legal-related charges during the period.