Meta Agrees to Pay $16 Billion to Settle Child Safety Case

Meta Platforms has agreed to pay up to $16.7 billion to settle a federal case brought by a coalition of U.S. states over allegations that the company misrepresented the mental health risks its social media platforms posed to children, according to a court filing released today.

The proposed settlement, which requires court approval, would also require Meta to make changes to Facebook and Instagram, including imposing daily usage limits and “nighttime blocks” for teenagers, strengthening age-verification measures and providing additional tools for parents and guardians.

California could receive between $1.5 billion and $2.1 billion under the agreement if it is approved, California Attorney General Rob Bonta said in a statement.

“Today, we have secured a settlement with Meta that will make social media less dangerous for our kids and make a world of a difference for children and their families,” Bonta said in a statement. “Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months.”

The case was brought by a group of 29 states and was co-led by Bonta and the attorneys general of Colorado, New Jersey and Kentucky. The trial began last week at the federal courthouse in Oakland, California, but has been suspended while the court reviews the settlement.

Several state attorneys general have described the agreement as worth $17.1 billion. That figure includes more than $459 million related to claims stemming from the Cambridge Analytica matter, which dates to 2018 and was separate from the child safety case.

Texas was not part of the multistate settlement and separately agreed to a $1 billion payment, according to the announcement.

Meta said the broader settlement agreement “includes a payment of approximately $18 billion,” to be distributed in annual installments over 10 years. The company said the money would fund youth online safety initiatives designated by the states.

Participating states would receive about $12.7 billion, or 70%, of the total settlement payment over the next decade, Meta said. They could receive the remaining $5.3 billion if Google’s YouTube and TikTok implement certain changes, including daily time limits for young users, age-assurance measures and a “night mode.”

Meta said its rivals would also have to agree to payments matching the remaining 30%, “with half of the remaining funds tied to YouTube’s payment and half tied to TikTok’s.”

Meta said it expects to “accrue a legal expense of approximately $10 billion in the third quarter of 2026 related to the agreement,” which was not previously reflected in its financial results.

Meta shares were up about 1% on Wednesday afternoon. Shares of Snap, which is also facing pressure from state attorneys general over youth safety, fell more than 8%.

The settlement would be the largest payment Meta has agreed to in litigation involving child safety.

Earlier this month, a New Mexico judge ordered Meta to contribute $567 million to an abatement fund following a public nuisance case involving allegations over child safety. A state jury had previously found Meta liable for violations of New Mexico’s unfair practices law and awarded $375 million in damages.

Other litigation against Meta remains pending, including cases involving personal injury claims and a consolidated federal lawsuit brought by school districts across the United States.

“Thousands of young people and public school districts still have claims pending in the MDL against Meta, as well as TikTok, Snap and YouTube, and we stand ready to continue that fight,” lawyers representing the plaintiffs in those cases said in a statement Wednesday. “We will not rest until every one of these plaintiffs sees justice for the harms caused by all of the defendants’ platforms.”

The court filing said the parties waived “all rights to appeal this Final Judgment.”

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