In a case that carries enormous risk for one of the world’s most valuable tech companies, the top legal officers of 29 states are seeking not only massive financial penalties, but also court orders that could force Meta to change how it operates its platforms.
The jury trial in federal court in Oakland, California, comes as social 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 heavy use of the algorithm-driven platforms can be dangerously unhealthy. Other social media giants – like Alphabet Inc.’s Google, Snap Inc. and TikTok – are not part of this trial. Some of the cases have already settled, avoiding trials, while more bellwether cases loom in the months ahead. The lawyers behind the cases have gained traction in court by arguing that the products themselves – through their design and functionality – have created harms, rather than taking at aim at content, for which platforms are broadly protected from liability.
By Meta’s own calculations, if it loses the trial it could face penalties of as much as $1.4 trillion, an amount close to its market capitalization and unheard of in the annals of legal history. Megan O’Neill, a lawyer for California, put the figure closer to $193 billion during a court hearing last week, while suggesting that Meta was pointing to the highest theoretical amount for “shock value While the attorneys general have not publicly disclosed exactly how much they’re seeking in penalties. But like Meta, they all face billions of dollars in potential exposure from more than 3,000 personal injury claims by individuals and families in the US, and about 1,300 more lawsuits by public school districts across the nation.
“We are ready to hold Meta accountable for its role in fueling the mental health crisis of American children and look forward to trial,” California Attorney General Rob Bonta, a Democrat, said in a statement.
