Meta was sued by 4 states, the fine was up to 1.4 trillion USD

Four US states including California, Colorado, Kentucky and New Jersey are asking for a fine of up to $1.4 trillion in a lawsuit expected to take place in August, accusing Facebook and Instagram of being designed to make children addicted and Meta misleading the public about the safety of the platform. This fine is nearly equal to Meta's entire market capitalization. "Meta has prioritized profits over children's safety and fueled a mental health crisis that is affecting a generation of American children," said a spokesman for California Attorney General Rob Bonta. The California Department of Justice wants Meta to be held fully responsible at the August trial. The whopping $1.4 trillion figure was calculated by the states by taking the estimated number of young users on the Meta platform in each state and multiplying it by the maximum fine allowed under the state's consumer protection laws. Each affected minor is considered a separate violation. Meta strongly objected, saying this fine had no supporting evidence and called this calculation "without any factual or legal basis". Meta also denied the allegations, saying there was no evidence that the company had misled users about the addictive potential of its platforms and that "social media addiction" was not a recognized mental illness, so the claim that Meta's platforms were causing research was incorrect.

This is not the first time Meta has been sued by US states. In March, a jury in New Mexico imposed a $375 million fine after concluding that Facebook and Instagram harmed children and facilitated child trafficking following a Guardian investigation in 2023. Evidence showed that Meta knew its platforms were harmful but ignored internal warnings and lied to the public about the safety of the platforms. Although Meta denies all charges, the jury is preparing for phase 2 of the lawsuit, forcing Meta to change the structure and operation of its platforms. Twenty-nine other states also sued Meta in federal court, alleging violations of the Children's Online Privacy Protection Act by collecting data from minors without parental consent. An additional 14 states are bringing separate charges under each state's laws against Meta, expected to drag Meta to court in February 2027. And yet, Meta's legal team is probably running at full capacity when facing thousands of other lawsuits from parents, schools, medical organizations ... Not only Meta, YouTube, TikTok, and Snapchat are also being sued with similar allegations and if Meta loses, these companies could also face heavy fines. According to Reuters