Meta Platforms and attorneys general from several U.S. states have discussed a potential settlement in a lawsuit accusing the company of designing Facebook and Instagram to foster addictive behavior among teenagers, Bloomberg News reported on Wednesday, citing sources familiar with the matter.
The talks are taking place during the second week of a federal trial in Oakland, California, where 29 states are seeking financial penalties and changes to how Meta’s platforms operate.
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Meta has denied the allegations, dismissing the design changes and potential payouts proposed by the states as unfounded.
The four states spearheading the case—California, Colorado, Kentucky, and New Jersey—claim that Meta knowingly developed features that encouraged prolonged and compulsive use by young people while misleading consumers about safety measures.
Meta has estimated that losing the case could result in fines of up to $1.4 trillion, Bloomberg reported, though a settlement would likely involve a significantly lower amount.
Instagram head Adam Mosseri, as well as current and former Meta employees, have testified in court. Meta CEO Mark Zuckerberg is also expected to testify, according to Bloomberg.
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