Meta Platforms said four US states are seeking $1.4tn in civil penalties in a lawsuit accusing the company of designing Facebook and Instagram to addict young users while misleading the public about the platforms' safety.
The figure, which is close to Meta's market capitalization, was disclosed in a court filing ahead of an August trial in Oakland, California. The case was brought by the attorneys general of California, Colorado, Kentucky and New Jersey.
Meta described the requested penalties as unprecedented and unsupported by either the evidence or the law. The company argues that the plaintiffs' methodology for calculating the penalties has no legal basis.
The four-state case is part of a broader legal challenge against Meta. In total, 29 states have sued the company, with most alleging that it collected children's personal data without obtaining the legally required parental consent. Fourteen additional states have filed separate lawsuits under their own state laws.
Meta denies all allegations. It argues that "social media addiction" is not a recognized psychiatric condition and therefore rejects claims that it misled the public by stating that Facebook and Instagram are not addictive.
(Reuters, bak)