Meta to Pay $16.7 Billion to Settle Child-Safety Lawsuit With States Over Teen Social Media Addiction

Meta settles a landmark federal lawsuit over teen social media addiction, paying $16.7 billion and agreeing to daily usage limits, nighttime blocks, and stronger age checks.

A landmark lawsuit accusing Meta of deliberately designing Facebook and Instagram to be addictive for teenagers ended Wednesday with a $16.7 billion settlement and a set of new child-safety requirements.

The deal, disclosed in a court filing and approved later the same day by U.S. District Judge Yvonne Gonzalez Rogers, cuts short a trial that began last week in Oakland, California. It resolves claims brought by dozens of states — Meta described the group as 52 attorneys general across U.S. states, territories, and the District of Columbia — that the company misrepresented the mental-health harms of its platforms and 'enticed, engaged and ultimately ensnared' young users.

Under the terms, Meta agreed to introduce daily usage limits and 'nighttime blocks' for teenage accounts, strengthen age-assurance measures to keep children off the apps, and build additional tools for parents and guardians.

The money splits several ways. California could receive between $1.5 billion and $2.1 billion, while Texas — not part of the group deal — agreed to a separate $1 billion payment. Some attorneys general pegged the total at $17.1 billion, a figure that folds in more than $459 million tied to the older Cambridge Analytica privacy matter. Either way, the payout is a sliver of Meta's roughly $201 billion in 2025 revenue.

Meta called the agreement 'an important step' toward 'a new industry standard' and urged rivals like TikTok and YouTube to adopt similar protections. Its shares rose about 1% on the news, while Snap — also in the attorneys general's crosshairs — slid more than 8%.

Sources: CNBC | AP News | CBS News