Meta and the attorneys general of several US states are exploring the possibility of reaching a settlement to end the litigation, Bloomberg News reported.
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The lawsuit, filed by 29 US states and being heard in a federal court in California, represents one of the most significant legal challenges facing social media platforms over their impact on the mental health of children and teenagers.
The states accuse the company of deliberately designing Facebook and Instagram to make young users addicted. The case also centers on claims that the platforms collected children’s personal data without their parents’ knowledge or consent.
The attorneys general of California, Colorado, Kentucky and New Jersey allege that Meta violated state consumer protection laws. The lawsuit also includes allegations that the company violated the federal law protecting children’s privacy online.
According to state authorities, the company obtained personal data from users it knew were children without informing their parents or obtaining their permission. The data was also allegedly used to train artificial intelligence models.
The prospect of a settlement became more apparent after several state attorneys general announced that they would hold press conferences. Meanwhile, Nevada’s attorney general said a major consumer protection settlement with a large technology company would be announced.
Meta has rejected the allegations, saying it has consistently taken steps to protect children on its platforms.
