Meta Platforms (META) is set to go to trial in California federal court over claims that it made Facebook and Instagram addictive to children and unlawfully gathered their data, Reuters reported Friday.
The 29 states involved in the lawsuit are seeking age limits and the removal of infinite scroll features, and Meta indicated potential damages could reach $1.4 trillion, the news outlet reported.
The case stems from a multi-state investigation initiated after a 2021 whistleblower alleged the company chose higher profits over addressing product harms, Reuters reported.
The trial comes after a New Mexico judge recently ordered Meta to pay $567 million and implement youth-safety measures following a ruling that the company created a public nuisance by harming children's well-being.
Meta Platforms did not immediately respond to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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