Meta and a coalition of state attorneys general have settled a major federal case centering on allegations that the social media giant misrepresented the extent of child mental health harms caused by apps like Facebook and Instagram.
The settlement was revealed in a court filing released Wednesday that details several requirements Meta must make to its apps as part of a proposed "consent judgement." The court officially approved the settlement later in the afternoon, according to a legal filing signed by Northern District of California Judge Yvonne Gonzalez Rogers.
Those changes include daily usage limits and "nighttime blocks" for teenagers who use the company's apps, "enhanced age assurance measures" that would prevent children from using them, and the creation of additional tools for parents and guardians.
As part of the settlement, Meta agreed to pay $16.7 billion. The state of California could receive $1.5 billion to $2.1 billion as part of the settlement, according to an announcement by California Attorney General Rob Bonta. Texas was not part of the group settlement and agreed to a $1 billion payment separately.
"Today, we have secured a settlement with Meta that will make social media less dangerous for our kids and make a world of a difference for children and their families," Bonta said in a statement. "Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months."
Several state AG's touted a $17.1 billion settlement amount. That number includes more than $459 million for claims related to the Cambridge Analytica matter which dates back to 2018 and was separate from the child safety case.
Each party waived "all rights to appeal this Final Judgment," the filing states.
Meta shares rose about 1% as of early afternoon. Snap, which is subject to the broader effort by AGs to force changes at social media companies, saw its stock sink more than 8%.
The trial, which kicked off with opening arguments last week, was being held at the Oakland federal courthouse in California. It was co-led by Bonta and the AGs from Colorado, New Jersey and Kentucky, who represented a bipartisan group of 29 AGs in a combined case stemming from a 2023 lawsuit.
The trial has been suspended pending review of the agreement between the parties, according to a court spokesperson.
In Bonta's announcement detailing the settlement, he noted that the effort involved a "bipartisan coalition of 51 attorneys general."
Meta said the settlement agreement "includes a payment of approximately $18 billion," which will be "distributed in annual installments over a 10-year period." That money will fund various youth online safety initiatives as deemed by the states.
The "participating states" will receive about $12.7 billion, or 70%, of the total settlement payment over the next 10 years, Meta said. Those states can receive the remaining $5.3 billion, or 30%, as long as Google's YouTube and TikTok implement certain app changes, such as daily time limits for youth, age-assurance measures, and a "night mode." Meta's rivals must also agree to all pay an amount that matches the remaining 30%, "with half of the remaining funds tied to YouTube's payment and half tied to TikTok's."
Meta said it expects to "accrue a legal expense of approximately $10 billion in the third quarter of 2026 related to the agreement," which was not previously taken into account.
The only notable executive to appear for Meta was Instagram chief Adam Mosseri, who testified on Tuesday that he doesn't direct employees to withhold certain child-safety and product information from him to provide cover and mislead the public. Meta CEO Mark Zuckerberg was slated to potentially testify later in the trial.
The settlement is the biggest yet for Meta, but not the only one it's been force to pay.
Earlier in August, A New Mexico judge ordered Meta to contribute $567 million to an abatement fund as part of a public nuisance case centering on child-safety allegations. The judge's ruling came several months after a New Mexico jury decided that Meta should pay $375 million in damages based on the number of times it violated the state's unfair practices act.
Other cases against Meta are still playing out, including one involving social media personal injury claims and a consolidated, nationwide federal school district case.
"Thousands of young people and public school districts still have claims pending in the MDL against Meta, as well as TikTok, Snap and YouTube, and we stand ready to continue that fight," lawyers representing the plaintiffs in those cases said in a statement Wednesday. "We will not rest until every one of these plaintiffs sees justice for the harms caused by all of the defendants' platforms."
