Meta Faces $1.4 Trillion California Addiction Trial as 29 States Target Facebook, Instagram
Updated
Updated · Yahoo Finance · Aug 28
Meta Faces $1.4 Trillion California Addiction Trial as 29 States Target Facebook, Instagram
3 articles · Updated · Yahoo Finance · Aug 28
Summary
Opening arguments began in a California-led trial accusing Meta of designing Facebook and Instagram to addict children and teens, with Meta's lawyers saying damages could reach $1.4 trillion.
Twenty-nine state attorneys general brought the case after New Mexico won nearly $1 billion against Meta, and that state's attorney general said a California-scale judgment could be "astronomical."
State lawyers put a more likely damages figure near $200 billion, while Meta argues the claims are unsubstantiated and the financial demands vastly disproportionate.
Meta shares are down 12.52% this year, suggesting investors still see the legal threat as manageable even though 98% of the company's revenue comes from online advertising.
The trial adds a potentially market-shifting risk just as Wall Street has focused more on Meta's AI infrastructure spending, which could reach $145 billion this year.