Four states seek penalties nearly matching Meta’s $1.5 trillion market cap in a lawsuit alleging addictive platform design targeting minors.
Meta disclosed in a court filing that California, Colorado, Kentucky, and New Jersey are seeking $1.4 trillion in penalties. The states allege the company designed Facebook and Instagram to addict young users and misled the public about platform safety. The demand approaches Meta’s market capitalization of roughly $1.5 trillion.
The states’ methodology involves multiplying a per-violation fine under state law by the number of teens allegedly harmed. Meta called the demand unprecedented, stating no comparable sanction exists in consumer protection enforcement history. The case is set for an August trial before U.S. District Judge Yvonne Gonzalez Rogers in Oakland.
Separate federal claims under the Children’s Online Privacy Protection Act, involving 29 states, will be heard alongside the four states’ consumer protection allegations. A second trial will address claims from 14 additional states.