META FACES $1.4 TRILLION CLAIM IN STATE TRIAL OVER CHILD SAFETY

Meta heads to trial this week in federal court in Oakland, California, in a case brought by dozens of US states alleging the company violated consumer protection laws and the Children's Online Privacy Protection Act. Four states—California, Colorado, Kentucky and New Jersey—are named as plaintiffs in the trial, which begins Tuesday before federal Judge Yvonne Gonzalez Rogers. The 25 other states involved in the legal action are expected to proceed to trial at a later date. Meta lost a last-ditch attempt to have the case dismissed last week and is disputing the allegations.

The states accuse Meta of deliberately designing addictive features on Facebook and Instagram, knowingly collecting data from users under 13 without parental consent, and intentionally misleading the public about the safety of its platforms. Meta disclosed in a court filing that states were seeking penalties as high as $1.4 trillion. Judge Rogers has indicated that figure is "unreasonable", according to reported remarks, and also took issue with Meta's proposed estimate of $4 million. The trial stems from a 2023 lawsuit that followed a multi-state investigation into the company's safety practices. Meta stated it disputes the allegations and that trial evidence would show its commitment to supporting young people.

The case carries particular weight for Meta, which reported a rare profit decline last month owing in part to $2.4 billion in legal expenses and already lost two pivotal trials this year over similar allegations of harms to children and teens. The $1.4 trillion figure represents nearly the entire market value of Meta Platforms. Top officials at Meta, potentially including chief executive Mark Zuckerberg, are expected to testify during the proceedings.