States Seek $1.4 Trillion in Social Media Addiction Damages From Facebook, Instagram

Social media addiction lawsuits allege Meta and other companies use sophisticated algorithms and features that encourage compulsive use and keep children scrolling.

Meta has asked a federal judge to reject a calculation proposed by several states, which could expose the company to $1.4 trillion in civil penalties for allegedly designing its social media platforms to foster addiction among children, resulting in serious mental health side effects.

Meta, the parent company of Facebook and Instagram, is among several major social media companies facing about 3,000 lawsuits over the alleged impact of their platforms on teens and young adults. The claims have been filed by young users and their families, school districts seeking to recover costs associated with student mental health and behavioral problems, and state attorneys general alleging the companies violated consumer protection laws.

The social media addiction lawsuits allege Meta, Google, TikTok, Snapchat and other companies intentionally incorporated algorithms, notifications, endless scrolling and other features designed to keep young users repeatedly returning to their apps.

Plaintiffs claim these addictive design features contributed to anxiety, depression, eating disorders, declining academic performance, behavioral problems, self-harm and suicide, while the companies failed to adequately warn parents and users about the risks.

All federal social media addiction lawsuits are consolidated into a multidistrict litigation (MDL) in the Northern District of California, where U.S. District Judge Yvonne Gonzalez Rogers is shepherding the cases through coordinated discovery and pretrial proceedings.

Judge Rogers has initiated a plan to hold early “bellwether” trials designed to give the parties a chance to see how juries respond to evidence and testimony likely to be repeated throughout the litigation. However, because there are primarily three types of plaintiffs, including individuals, school districts and states, there are various laws and factors that may apply to one type of social media addiction lawsuit and not the others.

States Seek $1.4 Trillion in Fines

The state lawsuits allege social media companies’ addictive designs and algorithms cost them millions in additional school funding and other expenses to address the mental health effects on their citizens.

On July 6, Meta submitted a request (PDF) to Judge Rogers, indicating that the states of California, Colorado, Kentucky and New Mexico have asked the company to pay $1.4 trillion in civil fines due to harms caused to youth by its Instagram and Facebook sites. The company’s submission to the court calls for Judge Rogers to reject the premise for the fines, arguing that they must be based on “wrongful conduct,” which Meta says is not what the states are asserting.

“They instead seek over one trillion dollars in penalties and disgorgement based on calculations that sweep in, and double count, every single teen who uses Meta’s platforms, and every single month in which a teen uses Meta’s platforms for more than a half-hour.”

– Meta Platforms Inc.

Meta argues that the proposed amount has no basis in fact or law, and is asking Judge Rogers to strike the states’ penalty calculations from the case. The company called for the Court to “exclusively hear and decide issues relating to the award of monetary relief in this case.”

Social Media Addiction Lawsuit Trials

Meta’s request comes ahead of an August 12 trial involving claims brought by four states. However, the proceeding will differ from the traditional jury trials expected in other social media addiction lawsuits.

Judge Rogers has ruled that the states are not entitled to have a jury issue a binding verdict on their claims. Instead, an advisory jury will hear the evidence and recommend how the case should be decided. The judge may consider that recommendation but will ultimately determine the outcome based on the applicable law.

Other cases in the federal litigation are being prepared as traditional bellwether trials, where juries will decide whether the social media companies are liable and, if so, how much compensation should be awarded. The first of those trials was expected to begin last month but was canceled after Meta reached a settlement with the Breathitt County School District. The terms of that agreement have not been disclosed.

The next federal bellwether trial involving a traditional jury is scheduled to begin February 8.

Social media addiction cases are also advancing in state courts, where some juries have already returned substantial verdicts. In March, a California jury ordered Meta and Google to pay $6 million to a woman who alleged she developed anxiety and depression after becoming addicted to social media as a minor. Days earlier, a New Mexico jury ordered Meta to pay the state $375 million after finding the company liable for contributing to teen social media addiction and related mental health problems.

The outcomes of these early trials do not determine how other lawsuits will be resolved. However, they may provide both sides with important insight into how judges and juries respond to the evidence, legal arguments and alleged harms, potentially influencing future trial strategies and settlement negotiations.

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