Key Takeaways
- Four states—California, Colorado, Kentucky, and New Jersey—initiated a federal lawsuit against Meta on Tuesday in Oakland, California.
- The plaintiffs are pursuing damages potentially reaching $1.4 trillion, claiming Meta intentionally created addictive mechanisms aimed at young users.
- Additional allegations include Meta’s unauthorized collection of data from users under age 13, breaching federal privacy regulations.
- CEO Mark Zuckerberg will provide testimony throughout the trial, which is projected to span six to eight weeks.
- Meta categorically rejects these accusations and emphasizes its commitment to safeguarding teenagers across its platforms.
Meta finds itself confronting potentially the most significant legal challenge it has ever encountered.
On Tuesday, proceedings commenced in Oakland, California, where four states—California, Colorado, Kentucky, and New Jersey—have brought allegations that the tech giant deliberately engineered addictive mechanisms into Facebook and Instagram that cause harm to young people.
The financial stakes are staggering: the states are pursuing damages potentially totaling $1.4 trillion. For context, this figure significantly exceeds Meta’s entire market capitalization.
These four states represent the initial wave of a larger group comprising 29 states that filed suit against Meta in 2023. The other 25 states will likely proceed with separate proceedings at a later date.
Meta stock has been navigating considerable legal uncertainty, and this federal litigation represents the most substantial financial exposure the company has encountered.
The Core Allegations
State prosecutors contend that Meta engaged in deceptive practices regarding platform safety and intentionally developed features specifically designed to create dependency among minors.
Furthermore, they claim the corporation gathered information from children younger than 13 without obtaining parental approval, constituting a breach of federal privacy legislation.
Arturo Bejar, a former Meta employee, will appear as an expert witness—despite Meta’s efforts to prevent his testimony. His three-hour presentation is anticipated to address the company’s internal safety protocols and whether Meta provided misleading public statements about its knowledge.
Kentucky’s Attorney General Russell Coleman characterized the case as “the largest consumer protection lawsuit in American history.”
Judge Yvonne Gonzalez Rogers will deliver the final judgment. An advisory jury consisting of eight individuals has also been assembled.
Meta’s Previous Legal Setbacks
This trial emerges against a backdrop of recent legal defeats. Earlier in 2025, a New Mexico court determined that Meta deliberately caused harm to children’s mental well-being and mandated the company pay approximately $1 billion in damages, comprising a $567 million penalty added to an initial $375 million judgment.
That same court mandated that Meta implement a 90-hour monthly usage cap for individuals under 18, limit access to AI chatbot features, and include mandatory safety notifications.
In March, a Los Angeles jury held both Meta and Google responsible for a woman’s social media dependency, marking Zuckerberg’s first courtroom appearance concerning child safety matters. The plaintiff received $6 million in damages.
Meta has expressed disagreement with both decisions and announced intentions to appeal.
The corporation asserts it has made substantial investments in safety features for teenage users, many implemented prior to these legal actions.
Zuckerberg is scheduled to testify once more in this federal case. The trial is projected to continue for six to eight weeks, with a decision expected by October.
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