Meta in Settlement Talks with States Over Facebook and Instagram Addiction Lawsuits

Meta Platforms, Inc. is reportedly in settlement talks with states over its high-profile lawsuit alleging that social media harms young users.

Meta Discussing Potential Settlement with States

According to a Bloomberg report Tuesday, citing sources familiar with the matter, the tech giant led by Mark Zuckerberg is in discussions with state attorneys general over an interim settlement while the federal litigation proceeds.

The company is accused of deliberately designing Facebook and Instagram to make teenagers addicted to these platforms.

Meta did not immediately respond to a request for comment on the latest development.

29 States Accuse Meta of Harmful Social Media Design

The federal lawsuit includes consumer protection claims brought by California, Colorado, Kentucky, and New Jersey. These states allege Meta violated the law by misleading consumers about the safety of its platforms.

Meta argues that its platforms are not addictive because "social media addiction" is not a recognized mental illness, according to Reuters.

The lawsuit also covers claims from 29 states alleging Meta violated federal child privacy protection laws by collecting data on children under 13 without parental notice or consent.

Price Action: Meta stock closed Tuesday at $570.05, up 1.97%. The stock fell 0.40% to $567.76 in after-hours trading. According to Edge Stock Rankings, despite the stock underperforming in the short, medium, and long term, Meta ranks in the 78th percentile for growth.