NEW YORK, NY, August 26, 2026 — Groups of Meta and state attorneys general have engaged in talks over a possible deal to end a high-profile trial about the safety of teens on social media. The lawsuit, now in its second week, accuses Meta of creating Instagram and Facebook to hook teens on using them. Six states want strict fines and changes to what the platforms must do.
A High-Stakes Trial
The trial is occurring at a federal court in Oakland, California. The case is one of the highest-profile legal tests to date of allegations that social media companies are doing harm to their young users. Just days before jury selection started Aug. 12, a federal appeals court refused to delay the trial.
Among them are attorneys general from California, Colorado, Kentucky and New Jersey. Both offices did not immediately respond to requests for comment on the settlement conversations. Nebraska’s attorney general, in a separate statement, also indicated plans to make a significant announcement regarding the case.
Meta’s Position
Meta said it did not intentionally design its platforms to keep teens addicted. The research, the company argues, shows no clear relationship between teenage social media use and diminished well-being. Meta in turn has called “social media addiction” an unproven psychiatric disorder.
The company highlights the addition of over 30 safety tools for teens and families in recent years. Officials say that these tools reflect a real commitment to keeping tweens and teens safe on the platforms. The plaintiffs allege that the tools were rolled out too late and not sufficiently promoted to younger users.
The Underlying Allegations
Meta is charged with secretly harvesting data on kids under 13 without their parents’ consent. It also alleges that the firm deceived the public for years over how dangerous its platforms are. As the case was filed, New York Attorney General Letitia James said: “Meta has been able to profit off of children’s pain.
James alleged that the firm created features in their products to manipulate children into potentially lowering their self-esteem. A total of 42 states are now involved in some type of litigation against Meta on the accusations. It represents one of the biggest tech-related state lawsuits in recent history because of its broad scope.
What a Settlement Could Mean
Mid-trial, a settlement would avoid a jury verdict that could deal punishing financial and operational blows. Details of the terms being discussed have not been disclosed. Because so many states are involved, any deal would likely need to be approved by a court.
According to legal experts, settlement talks are common in high-profile trials, though they do not guarantee a resolution. If the two sides do not settle, the trial could last for more weeks. Scientific resources related to children’s online privacy can be found from the Federal Trade Commission.
But child safety advocates say a settlement might not do enough to force the structural changes states want. Parents involved as plaintiffs in the litigation have clamored for better accountability. US regulators are following the case as they consider similar action against other platforms.
Investors have closely followed the trial due to its potential financial impact for Meta. A settlement would lessen uncertainty, analysts say, but also fall short of driving major policy changes. The next round of testimony is likely to examine internal documents on research by the company.
