Meta Faces Federal Trial Over Youth Mental Health Crisis, Potential $1.4 Trillion in Damages
Meta is heading to a federal trial in Oakland, California, facing accusations from multiple states that its platforms, Facebook and Instagram, contribute to the youth mental health crisis. The lawsuit alleges that Meta knowingly designed features to addict children and collected data on minors under 13 without parental consent, violating federal law. Four states—California, Colorado, Kentucky, and New Jersey—are leading this initial trial, with 25 other states expected to pursue similar cases later. The potential financial damages could theoretically reach $1.4 trillion, a figure close to Meta's entire market capitalization. Meta disputes these allegations, stating its commitment to supporting young people and highlighting its efforts to implement safety tools. This trial follows two previous cases this year where Meta lost over harms to children and teens, contributing to a reported profit decline and $2.4 billion in legal expenses.