Meta (META) agreed to settle a social media addiction case with a group of state attorneys general on Wednesday, ending the trial in its second week and sending Meta's stock higher.
The case, presided over US District Judge Yvonne Gonzalez Rogers in Oakland, Calif., revolved around allegations from 29 states that Instagram and Facebook developed products to hook young users on the platforms and harvested the data of children under 13 to their benefit.
According to court filings, Meta denied wrongdoing and agreed to pay up to $16.68 billion. Meta also agreed to make changes for teenage users of Facebook and Instagram nationwide, including usage limits and nighttime blocks.
The California lawsuit is just the latest in a string of suits Meta faces regarding its impact on teens and young users. The company has already lost two cases, one in Los Angeles and another in New Mexico, both of which it says it will appeal.
The cases are all unique but generally focus on how Meta designs its products rather than on the content they host. That's an important distinction, because Section 230 of the Communications Decency Act shields Meta and other internet-based platforms from liability for what their users post.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley.
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