Meta Talking With States to Settle Landmark Lawsuit That Claims Facebook and Instagram Were Designed to Be Addictive to Kids: Report

Meta Talking With States to Settle Landmark Lawsuit That Claims Facebook and Instagram Were Designed to Be Addictive to Kids: Report Ananya Gairola Thu, August 27, 2026 at 3:26 AM GMT+2 4 min read META Meta Platforms, Inc. (NASDAQ: META ) is reportedly in discussions with states to settle its high-profile trial over alleged harm to young social media users. Meta, States Discuss Potential Settlement The Mark Zuckerberg -led tech giant and state attorneys general are discussing a mid-trial settlement while a federal trial is ongoing , Bloomberg reported Tuesday, citing people familiar with the matter.

The company is accused of intentionally designing Facebook and Instagram to keep teens addicted to the platforms. Meta did not immediately respond to Benzinga's request for comment on the latest development. Read Also: Meta, Google And Snap Catch a Break as Teen Drops Social Media Addiction Lawsuit Ahead of Key Trial 29 States Accuse Meta Of Harmful Social Media Design The federal trial includes consumer protection claims by California, Colorado, Kentucky and New Jersey.

The states accused Meta of violating laws by misleading consumers about the safety of its platforms. Meta has maintained that its platforms are non-addictive because "social media addiction" is not a recognized psychiatric disorder, Reuters reported. The lawsuit also covers claims by 29 states accusing Meta of violating federal children's privacy protections by collecting data from children under 13 without parental notification or consent.

Price Action: Meta shares closed at $570. 05 on Tuesday, up 1. 97%.

The shares fell 0. 40% to $567. 76 in after-hours trading, according to Benzinga Pro.

According to Benzinga Edge Stock Rankings , Meta ranks in the 78th percentile for growth, despite the stock underperforming across the short, medium and long term. Read Also: Meta Reportedly Readies Hatch AI Platform, With Premium Plans Near $200 a Month Don't Miss: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die. " Here's how you can earn passive income with $100 .

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