Meta, US States in Settlement Talks as Child Safety Trial Continues

Meta Platforms has discussed a possible settlement with a coalition of U.S. states. The talks are taking place as a federal trial over the alleged harm Facebook and Instagram caused to children and teenagers continues in Oakland, California.

Bloomberg News first reported the settlement discussions, citing people familiar with the matter. Reuters also reported the development. No final settlement has been reached, and the case remains in court.

Twenty-nine states are pursuing the lawsuit. California, Colorado, Kentucky and New Jersey are leading it. Jury selection began August 12, and opening statements followed on August 18.

The states allege that Meta deliberately designed Facebook and Instagram to keep young users engaged for longer periods, even as the company allegedly knew that excessive use could cause physical and mental harm. California Attorney General Rob Bonta has argued that Meta built and deployed features to drive that engagement while misleading users, parents and the public about the risks involved. The states also accuse Meta of violating the Children's Online Privacy Protection Act, or COPPA, along with other federal and state laws.

The states allege that Meta collected and used data from users under 13 without the parental consent COPPA requires. Reuters reported that the states further allege this data was used to train Meta's artificial intelligence systems. Meta has denied the allegations.

Much of the trial has focused on design rather than content: the features built into Facebook and Instagram to keep people scrolling. Instagram chief Adam Mosseri was questioned about the app's "Take a Break" feature, which encourages users to take a break after a set period of use. Mosseri testified that only a small number of teenagers used the feature before Instagram made it a default for teen accounts in 2024. He rejected the suggestion that Meta had intentionally delayed that change.

Former Meta safety engineer Arturo Béjar has also testified, describing internal concerns at the company over young users and harmful experiences on its platforms. Meta disputes the broader conclusions the states are drawing from that testimony.

The company has consistently rejected claims that it deliberately designed its platforms to harm or addict children. Meta says its products include significant safety measures and argues the states have not proven that Facebook and Instagram caused the harms alleged. The company has also challenged the legal basis for the case and the scale of the penalties being sought.

Reuters has reported that the states could seek civil penalties of nearly $200 billion. Meta, separately, has said its own potential legal exposure under the laws at issue could reach as much as $1.4 trillion, a figure that reflects the company's own estimate rather than a fine that has been imposed or a judgment it is guaranteed to face.

A settlement would allow Meta to end the litigation without a final judgment, though it would not necessarily mean the company has admitted wrongdoing. Talks remain ongoing, and no agreement has been finalized.

The states are not seeking money alone. Reuters reported that if they prevail, the case could force changes to how features such as infinite scrolling, likes and restrictions on underage accounts function.

California and other states first filed the lawsuit in 2023, accusing Meta of building features that encouraged excessive use among young people and of failing to protect them. A federal judge rejected Meta's bid to end the case on summary judgment in June 2026, agreeing with California that Meta's method of obtaining parental consent fell short of COPPA requirements. On August 10, the Ninth Circuit dismissed Meta's appeal over Section 230 and denied its effort to halt the trial.

Meta has not admitted liability. The trial continues, and so do the settlement talks that could end the case before the court reaches a final judgment.