Meta’s astronomical damages lawsuit is set to go to trial on Tuesday.
2026.08.18 07:00:03
Meta Platforms (META.O)’s major lawsuit alleging child safety harms and privacy violations will go to trial starting Tuesday local time. The states accuse Meta of intentionally designing features addictive to minors and illegally collecting data on children under 13. According to Meta’s own estimates, a loss in the lawsuit could result in fines as high as $1.4 trillion—nearly equal to the company’s total market cap—an unprecedented figure in legal history. The states are also demanding Meta overhaul the operating models of Facebook and Instagram, including removing features like like counts and infinite scroll. If forced to pay the full $1.4 trillion in claims, Meta would face bankruptcy and potential state takeover. While state attorneys general have not publicly disclosed the exact claim amount, California Attorney General Megan O’Neill revealed during a court hearing last week that the figure is close to $193 billion, adding that Meta’s cited theoretical maximum is intended to create a "shock effect". Even at the lower claim amount, it would rank among the largest lawsuit settlements in history, comparable to the $206 billion 1998 settlement between more than 40 U.S. states and tobacco companies over cigarette addiction.
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