Four States Seek Up to $1.4 Trillion from Meta in Social-Media Design Lawsuits

Meta faces penalties of up to $1.4 trillion in lawsuits filed by California, Colorado, Kentucky, and New Jersey over the designs of Facebook and Instagram. Engadget reported that the four states accused the company of misleading the public about the safety of the platforms.

The states calculated the figure by estimating the number of young users affected and multiplying by fines set under state law.

Meta disclosed the amount in response to a request from the states' attorneys general on penalty calculations. Meta stated that a sanction of that size is unjustified and has no analog in the history of consumer protection enforcement. The $1.4 trillion sum is close to the company's $1.5 trillion market capitalization.

Meta faces separate lawsuits from 29 other states, most alleging violations of the federal Children's Online Privacy Protection Act through data collection from children without parental consent. US District Judge Yvonne Gonzalez Rogers will address the COPPA claims along with the four state lawsuits at a trial scheduled for August.

Fourteen additional states have filed claims under local laws that will be heard at a separate trial in February 2027.

Meta has denied the allegations, stating that social media addiction is not an established psychiatric condition. A jury awarded New Mexico $375 million after finding that Meta misled consumers in that state. Meta and other social networks paid $27 million to settle a Kentucky school district lawsuit over similar claims.