Meta Platforms Inc.’s $17 billion settlement is a big win for states suing the social media platform over addiction and mental health harms, but the deal has some unusual and potentially challenging provisions, observers say.
Meta's settlement, announced on Monday, is with 50 states, U.S. territories and Washington D.C., but legal experts and observers flagged initial concerns about age verification and releases in the deal.
Meta Platforms Inc.’s $17 billion settlement is a big win for states suing the social media platform over addiction and mental health harms, but the deal has some unusual and potentially challenging provisions, observers say.
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The settlement, announced one week into a federal trial underway in Oakland, California, resolves claims by 51 states and territories that the social media giant designed addictive features, knew it exposed young users to mental harms and intentionally misled the public about the risk of its platforms.
Oregon's chief U.S. district judge said the plaintiff and his lawyers were making a “cottage industry” out of TCPA class actions.
The 14 class actions are all filed by a plaintiff who isn't a suitable class representative, according to the defense firm Watstein Terepka, because of his use of "violent racist rhetoric" on social media, among many other reasons.
This week: A New Mexico judge ordered Meta Platforms to pay $567 million into an abatement fund and implement child-safety reforms after finding Facebook and Instagram substantially contributed to the state's youth mental health crisis, pushing the company's total exposure in the case to nearly $1 billion. Meanwhile, a Philadelphia judge overhauled the leadership structure of the city's Paraquat mass tort, removing several longtime plaintiffs' leaders.
Facts Only
* Meta Platforms Inc. reached a $17 billion settlement.
* The settlement involved 50 states, U.S. territories, and Washington D.C.
* The claims were brought over addiction and mental health harms related to the social media platform.
* The settlement followed a federal trial in Oakland, California.
* One state action resulted in an order for Meta Platforms to pay $567 million into an abatement fund and implement child-safety reforms after finding Facebook and Instagram contributed to a youth mental health crisis.
* A Philadelphia judge overhauled the leadership structure of the Paraquat mass tort.
* 14 class actions were filed, with the defense firm Watstein Terepka asserting the plaintiff was not a suitable class representative due to the plaintiff's social media behavior.
Executive Summary
A settlement of $17 billion was reached by Meta Platforms Inc. with 50 states, U.S. territories, and Washington D.C., resolving claims from those suing the social media platform over addiction and mental health harms. Observers noted that the deal includes provisions regarding age verification and releases which have raised initial concerns among legal experts. This settlement followed a federal trial in Oakland, California, one week prior to its announcement.
The settlement addresses claims stemming from allegations that the social media giant designed addictive features, knew these exposed young users to mental harms, and intentionally misled the public about platform risks. In parallel, other related actions occurred; a New Mexico judge ordered Meta Platforms to pay $567 million into an abatement fund and implement child-safety reforms following findings that Facebook and Instagram contributed to the state's youth mental health crisis, bringing the company's total exposure in that specific case near $1 billion. Additionally, a Philadelphia judge reorganized the leadership of the city's Paraquat mass tort.