Meta Agrees to Pay $18 Billion to Settle Landmark Social Media Addiction Lawsuit

Meta, the parent company of Facebook and Instagram, has agreed to pay up to $18 billion to settle a multistate lawsuit alleging the social media giant intentionally designed its platforms to keep children and teenagers engaged despite known risks to their mental health and safety.

In addition to the multi-billion-dollar payout, Meta has also agreed to implement new safety initiatives to protect young users and limit the amount of time they spend on Facebook and Instagram.

Despite the massive social media addiction settlement, Meta denies any wrongdoing.

What Happened in the Meta Lawsuit?

According to CNN, the lawsuit was brought by a coalition of 23 states that accused Meta of deliberately designing its platforms to encourage children and teenagers to spend excessive amounts of time on Facebook and Instagram.

The states alleged that Meta knew its products could pose a risk to young people’s mental health but continued using features designed to maximize engagement. Among the allegations were claims that Meta’s platforms contributed to anxiety, depression, social media addiction, and other problems among children and teenagers.

The case was being tried in Oakland, California, when Meta reached the settlement with the states. The agreement prevents the trial from continuing and resolves the claims brought by the participating states.

The settlement does not represent an admission of wrongdoing by Meta.

Meta Will Pay Up to $18 Billion

Under the agreement, Meta could pay up to approximately $18 billion over 10 years.

About $12 billion of the settlement is guaranteed, while an additional portion is tied to whether other major social media companies agree to adopt similar child-safety measures. Reports have put the guaranteed and contingent amounts slightly differently depending on how the agreements are calculated.

The settlement is significant not only because of its size but because of the changes Meta has agreed to make to Facebook and Instagram.

The agreement also puts pressure on other major technology companies, including TikTok and YouTube, to adopt similar restrictions for younger users.

How Facebook and Instagram Will Change for Teenagers

As part of the settlement, Meta has agreed to implement several new restrictions designed to limit how much teenagers use its platforms.

Among the most significant changes are:

• Two-hour daily limit: Teenagers will have a default limit of two hours of Facebook and Instagram use per day.
• Overnight restrictions: Access will be restricted between midnight and 6 a.m.
• School-hour restrictions: Notifications will be turned off by default during school hours.
• Stronger age verification: Meta will use additional technology to determine users’ ages and prevent children under 13 from accessing the platforms.
• More parental controls: Parents will receive additional tools to monitor and manage their children’s social media use.
• Changes to teen accounts: Certain features, including visible “like” counts and some cosmetic filters, will be restricted or turned off for younger users.
• Additional content protections: Meta will implement additional measures addressing potentially harmful content involving issues such as bullying, eating disorders, suicide, and self-harm.

The settlement still requires court approval before the agreement can take effect.

Texas Reaches Its Own $1 Billion Settlement With Meta

While Texas was not part of the multistate lawsuit that produced the $18 billion settlement, Texas Attorney General Ken Paxton did announce a separate agreement with Meta on August 26.

Under that agreement, Meta will pay more than $1 billion to Texas and implement additional protections for children and teenagers using its platforms.

Texas’s agreement includes stricter age verification, a two-hour daily usage limit for teenagers, restrictions on notifications during school hours, and nighttime restrictions on access to Facebook and Instagram.

The Texas settlement is also notable because it represents the second time Meta has agreed to pay Texas more than $1 billion to resolve allegations involving the company’s conduct. In 2024, Meta agreed to pay Texas $1.4 billion to resolve a lawsuit alleging that the company improperly collected users’ biometric data.

The Settlement Comes After Other Social Media Lawsuits

Meta is not the only technology company facing lawsuits over alleged harm to children.

TikTok, YouTube, and Snap have also faced litigation alleging that their platforms use features designed to encourage excessive or compulsive use among young people.

Earlier this year, a California jury found Meta and Google liable in a lawsuit involving allegations that their platforms contributed to a young person’s mental health problems. The plaintiff was awarded $6 million in compensatory and punitive damages.

Similarly, a New Mexico jury reached a separate judgment against Meta that resulted in approximately $942 million in penalties and required the company to implement additional measures intended to protect children.

The judge in the New Mexico case ruled that Meta’s actions created a dangerous public nuisance, hitting the corporation with a $567 million fine to be paid in addition to a $375 million civil penalty for violations of New Mexico’s Unfair Practices Act.

Meanwhile, hundreds of lawsuits involving social media companies remain pending, including cases brought by school districts and individual families.

What Does the Settlement Mean for Families?

The settlement represents a major development in the legal fight over social media and children’s safety, but it does not necessarily mean that individual families will automatically receive money from the settlement.

The agreements announced this week primarily resolve claims brought by states against Meta. Separate lawsuits involving individual children and families can raise different legal claims based on the specific circumstances of an injury.

Those cases may involve allegations that a social media platform’s design, algorithms, content recommendations, or other practices contributed to a child’s injury or death.

A Major Turning Point for Social Media Safety

Meta’s settlement could represent a major turning point in the way social media companies approach young users.

For years, parents, lawmakers, researchers, and attorneys have raised concerns about the potential effects of social media on children and teenagers. The lawsuits against Meta have now resulted in one of the largest settlements involving alleged harm to children and forced the company to agree to substantial changes to its platforms.

The settlement also sends a message to other social media companies.

Meta’s chief legal officer has called for companies including TikTok and YouTube to adopt similar protections, arguing that teenagers move between multiple social media platforms and that child safety requires an industry-wide approach.

For now, however, the legal battles surrounding social media are far from over.

Contact Thomas J. Henry

If you believe your child has suffered from social media addiction or was seriously harmed as a result of social media use, your family may have legal options. Thomas J. Henry Law is committed to helping families understand their rights and pursue the compensation they may be entitled to.