Meta is facing one of its biggest legal battles yet as 29 US states take the Facebook and Instagram owner to court over allegations that it deliberately designed its platforms to keep children hooked and illegally collected data from users under 13.
Opening arguments begin today, Tuesday, August 18, in federal court in Oakland, California.
Meta has claimed that penalties sought under the states’ calculations could reach as high as $1.4 trillion, close to the company’s market value. However, the attorneys general have not formally announced that figure as their demand and told the court last week that potential penalties could instead be closer to $200 billion.
The lawsuit grew out of a multistate investigation launched after whistleblower Frances Haugen raised concerns about Meta’s knowledge of the effects its products could have on younger users. The states allege Meta drove excessive use among children and teens while misleading users and families about the safety of Facebook and Instagram.
Zuckerberg Could Take the Stand
Meta CEO Mark Zuckerberg and Instagram chief Adam Mosseri are expected to testify during the trial, which is expected to run for around six weeks.
An eight-person jury will hear the evidence, but unlike a normal jury trial, its verdict will only be advisory. Judge Rogers will make the final decision on liability and any penalties.
The outcome could have consequences far beyond this single lawsuit. Meta and other major social media companies already face thousands of cases from individuals, schools, governments, and other groups over allegations that their products harmed younger users.
Meta’s legal bills are already substantial. The company said it spent $2.4 billion on legal costs in the second quarter of 2026 alone.
Judge Calls It Unreasonable
Judge Yvonne Gonzalez Rogers has reportedly described the $1.4 trillion estimate as unreasonable, while also rejecting Meta’s own proposal of only around $4 million.
The states are not only seeking money. California, Colorado, Kentucky and New Jersey are also asking the court to force changes to Meta’s platforms, potentially including age restrictions, the removal of infinite scrolling and other changes aimed at protecting younger users.
Meta Accused of Collecting Children’s Data
All 29 states are pursuing claims under the Children’s Online Privacy Protection Act (COPPA).
They allege Meta knew children under 13 were using Facebook and Instagram but still collected and used their personal information without proper parental consent. California, Colorado, Kentucky and New Jersey are separately pursuing consumer-protection claims related to Meta’s statements about the safety and allegedly addictive nature of its platforms.
Meta denies the allegations and says the states have failed to prove that residents were misled or harmed. The company says it has introduced strong protections for teenagers and argues that the proposed financial penalties are disproportionate.
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