Opening statements in a landmark US case brought by a bipartisan coalition of 29 states against Meta — the parent company of Facebook and Instagram — began on Tuesday, with Colorado, California, New Jersey and Kentucky arguing that the company's popular social media apps were designed in ways that harmed the mental health of young users.
The trial, expected to last several weeks, is being heard in a US federal court in California before District Judge Yvonne Gonzalez Rogers. An eight-person jury is serving in an advisory capacity, with Judge Rogers set to make the final ruling.
Megan O'Neill, a deputy California attorney general, said in her opening statement that the company designed its products to "hook the users, hold them for as long as they can, harvest their data, and then hide the truth from the public." She added that the strategy worked "especially well for kids."
The lawsuit, first filed in 2023, alleges that Meta deliberately designed its apps to encourage excessive use among its youngest users. The coalition also alleges that the company collected data on children under the age of 13 in violation of federal law.
Meta has pushed back firmly against the allegations. In a statement issued before the trial, a company spokesperson said the states' claims are unsubstantiated and pointed to what it described as a strong record of protecting teenagers. The company cited the 2024 launch of Instagram Teen Accounts, which restrict who can contact underage users, as well as a feature allowing parents to set time limits on usage.
"The State AGs may call this a landmark case, but their limited claims are unsubstantiated and their financial demands are vastly disproportionate," said Stephanie Otway, a Meta spokesperson. "The AGs offer no proof anyone in their states was misled, claim benign features like having an additional Instagram account somehow harmed their residents, and attempt to penalize Meta for industry-wide challenges like age verification. Rather than sticking to the facts or the law, the states have instead decided to chase an outlandish payout."
The financial stakes for Meta are significant. The company could face fines as high as $1.4 trillion — just below its $1.5 trillion market capitalisation — though the coalition is seeking fines of approximately $200 billion.
Meta has already been ordered to pay $942 million in fines in a separate New Mexico lawsuit: $375 million in civil penalties following a March jury verdict, and a further $567 million ordered by a judge earlier this month.
In a Securities and Exchange Commission filing in January, Meta acknowledged that lawsuits it faces, including those related to youth social media addiction, could lead to "substantial monetary damages or fines."
The case has its roots in a 2021 US Senate committee hearing, when whistleblower Frances Haugen, a former data scientist at Facebook, testified that the company knowingly pushed products that could harm the health of young users as it pursued higher profits under chief executive Mark Zuckerberg.
Meta has repeatedly attempted to have the coalition lawsuit dismissed, including in 2024 and as recently as June, when it sought a summary judgement that would have ended the case without a trial.
Beyond financial penalties, the coalition is asking Meta to make structural changes to its platforms, including introducing stricter age restrictions and removing the infinite scroll feature.
Meta faces a growing number of similar cases across the United States, brought by cities, states, school districts and individuals.
The proceedings are already affecting the company's share price. Meta stock was down more than 3 percent in midday trading on Wall Street.
