Meta Platforms Inc. reached an agreement to settle a landmark lawsuit alleging that addiction to Instagram and other top social media platforms upended learning across America and pushed United States public schools to spend enormous resources fighting a mental health crisis, according to a court filing.
Meta was the sole remaining defendant in a trial scheduled for June after Snap Inc., Google's YouTube and TikTok settled a week earlier. The terms of Meta's settlement were not disclosed in Thursday's filing, but a spate of additional lawsuits brought by school districts could open the tech companies to a collective theoretical liability of almost US$400 billion, according to an estimate from Bloomberg Intelligence.
In a statement, plaintiffs' attorneys Lexi Hazam, Previn Warren, Chris Seeger and Ronald Johnson confirmed they had resolved Breathitt County School District's claims against Meta, as well as its claims against Snap, TikTok and YouTube. "Our focus remains on pursuing justice for the remaining 1,200 school districts who have filed cases," the attorneys said in a joint statement.
A Meta spokesperson said, "we've resolved this case amicably and remain focused on our longstanding work to build protections like Teen Accounts that help teens stay safe online, while giving parents simple controls to support their families."
Child Safety Litigation Intensifies
It has been a busy year for tech companies embroiled in child safety litigation. Meta and Google went to trial in a first-of-its-kind personal injury suit over youth social media addiction in January in Los Angeles. A jury found the companies liable for harming a 20-year-old woman with products designed to keep her hooked, awarding a total of US$6 million in damages. TikTok and Snap, also named in the suit, settled just ahead of that trial.
In March, Meta lost a separate case in New Mexico alleging the company failed to protect children from online predators; jurors assessed a penalty of US$375 million.
Upcoming Trials and Executive Testimony
Thursday's settlement means that Meta chief executive Mark Zuckerberg, head of Instagram Adam Mosseri and other top executives will no longer have to testify in the trial, which was set to begin June 12 in federal court in Oakland, California. But another case against Meta brought by dozens of state attorneys general is slated to begin in August, and a defeat for the company could force it to change how its products operate.
Financial Impact and Industry Response
Meta and its rivals have downplayed the financial impact of the lawsuits and cultural backlash over child safety on their platforms. On Meta's most recent earnings call with investors, Zuckerberg did not address the topic; chief financial officer Susan Li, in prepared remarks, said only that "we continue to see scrutiny on youth-related issues and have additional trials scheduled for this year in the U.S., which may ultimately result in a material loss."
