The tech giant calls the size of the claims ‘outlandish’ and says it ‘strongly disagrees’.
Meta could see penalties stack up to a staggering $1.4trn due to legal action in four US states; California, Colorado, Kentucky and New Jersey.
At the time of writing, the social media giant’s market value sat at $1.53trn.
The Instagram and Facebook owner is facing a series of lawsuits in which it is accused of fuelling a teen mental health crisis, with school districts seeking damages to help tackle the issue.
Meta’s attorneys argued in a filing that the state’s proposals were “outlandish” and “unsubstantiated” and a “sanction of that size has no analog in the history of consumer protection enforcement”.
Social media platforms have been accused of risking user safety to fuel their algorithms, with whistleblowers claiming the sites of took risks with safety guardrails in order to engage users with content.
A spokesperson for the California attorney general’s office said in a statement: “Our lawsuit alleges Meta has prioritised profits over the safety of kids and fueled the mental health crisis we see impacting a generation of American children. The California Department of Justice looks forward to holding Meta fully accountable at trial in August.”
It’s unlikely that Meta will actually face the possible $1.4trn in penalties, as this is based on the way attorney generals have suggested the penalties should be calculated should they win their cases.
Meta even asked congress for immunity against the lawsuits – a clear signal it is worried about the sheer number of these legal cases. The company faces over 2,400 pending suits from school districts, governments, and parents, which critics have warned could amount to social media’s “big tobacco moment”.
The company has already faced back to back losses in similar cases, as it was found to be designed to be addictive to children and young people.
In a statement responding to the ruling, Meta said: “We strongly disagree with these allegations and are confident the evidence will show our longstanding commitment to supporting young people.”
