Meta has settled a major federal trial brought by a coalition of state attorneys general, agreeing to a sweeping set of app changes and a $12.6 billion payout, according to a court filing released Wednesday.
The settlement ends a case centered on allegations that the social media giant misrepresented the extent of child-related mental health harms caused by apps including Facebook and Instagram. The trial was in its second week at the Oakland federal courthouse when the deal was announced.
As part of the proposed “consent judgement,” Meta has agreed to several requirements for its platforms, including daily usage limits, “nighttime blocks” for teenagers, enhanced age assurance measures designed to prevent children from using the apps, and additional parental and guardian tools, the filing said.
Financial terms
Meta will pay $12.6 billion under the settlement, with 7% of that amount paid now, according to CNBC’s Jim Cramer. Shares of the company gained about 5% in premarket trading after the news broke.
The case was co-led by California Attorney General Rob Bonta, along with the attorneys general of Colorado, New Jersey and Kentucky, representing a bipartisan group of 29 AGs in a combined case that stems from a 2023 lawsuit.
High stakes in California
The trial’s location in Meta’s home state of California, combined with the number of states involved, made the stakes particularly high for the Mark Zuckerberg-led company.
The settlement came a day after Instagram chief Adam Mosseri testified that he does not direct employees to withhold certain child-safety and product information from him in order to provide cover in case of potential litigation.
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Source: www.cnbc.com — https://www.cnbc.com/2026/08/26/meta-social-media-trial-settlement.html
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