California takes Meta to court for ‘fueling’ children’s mental health crisis

Of the thousands of lawsuits Meta faces over child safety on its platforms, none may be more consequential than one going to trial this week in California.

States are seeking extensive financial damages that could, in theory, total as much as $1.4 trillion, plus changes to how the company operates Facebook and Instagram.

The lawsuit accuses the social media giant of contributing to the youth mental health crisis by knowingly and deliberately designing features that get children addicted to its platforms. It also claims that Meta routinely collects data on children under 13 without their parents’ consent, in violation of federal law.

“Meta designed Facebook and Instagram to keep kids on the platforms longer and longer – to the point of physical and mental harm. Exploiting our most vulnerable residents to boost corporate profits is not only morally wrong, it’s also illegal,” said California Attorney General Rob Bonta. “As the home of great innovators and Silicon Valley, California has a particular opportunity and obligation to be a catalyst for change.”

The lawsuit was filed by Bonta and the attorneys general of dozens of states three years ago. Bonta, alongside the attorneys general of Colorado, Kentucky and New Jersey are the main plaintiff in the trial set to begin Tuesday in an Oakland federal court.

The other 25 states involved are expected to have trials later.

The suit alleges Meta sought to maximize its profits by harnessing “powerful and unprecedented technologies to entice, engage and ultimately ensnare youth and teens.”

The federal complaint alleges Meta misled the public about the safety of certain platform features designed to be addictive and that the company did not address harms to young users, among committing broader privacy concerns.

Meta, owned by billionaire Mark Zuckerberg, denies the allegations and said in a statement it has “listened to parents, worked with experts and law enforcement and conducted in-depth research to understand the issues that matter most.”

Monetary damages threaten Meta operations

The states in this case are seeking an unprecedented $1.4 trillion in financial damages, as well as fundamental changes to how Meta runs Facebook and Instagram, its key platforms.

The $1.4 trillion figure is nearly as high as the company’s entire market capitalization, or its total value based on the stock market. If made to pay the whole penalty, Meta would be bankrupted.

If Meta loses the case, the federal judge will have discretion over the size of the financial penalty. Financial experts say the odds of the company having to pay the full figure are slim.

“It’s not plausible in the sense that Meta doesn’t have that much money and could not get it,” said James Grimmelmann, a law professor at Cornell Law School and Cornell Tech. “An award that large would put Meta into bankruptcy, wipe out its owners and effectively result in the states owning Meta.”

Meta’s attempts to stall the case

Since the 2023 lawsuit was filed, Meta has made multiple attempts to stall and altogether scrap the case.

In 2024, Yvonne Gonzalez Rogers, the California federal judge presiding over the Oakland trial, denied Meta’s attempt to dismiss the lawsuit.

Meta was also denied access to summary judgment on the case, meaning that the judge would not allow the case to be resolved before a trial by jury.

Last week, Meta filed another appeal challenging the lawsuit based on Section 230 of the Communications Decency Act, a federal law that protects online platforms from being held responsible for content posted by users. A district judge also dismissed this appeal.

The coalition of states will argue that Meta violated both federal and state laws, including the Children’s Online Privacy Protection Act, California's False Advertising Law and California’s Unfair Competition Law.

Additional reporting by AP.