US Court: Meta and Other Tech Giants Must Face Thousands of Lawsuits
Synopsis
Meta, Google, TikTok and Snapchat must face thousands of lawsuits alleging their social media platforms were designed to keep young users hooked, after a US appeals court rejected an appeal by Meta and TikTok.
Key Highlights
- Tens of thousands of lawsuits to proceed against Meta, Google, TikTok and Snapchat: U.S. appeals court.
- Over 3,000 federal lawsuits allege the companies made their platforms addictive to young users.
- A court denied Meta’s request to pause a trial filed by 29 state attorneys general.
- Earlier this month, New Mexico ordered Meta to pay $567 million in a fund for former adolescent victims of poor mental health associated with social media.
On Monday, a US appeals court cleared the way for thousands of lawsuits against Meta Platforms, Alphabet’s Google, ByteDance’s TikTok and Snap’s Snapchat. The cases allege that the companies designed their platforms in ways that could make them addictive to children.
Meta and TikTok Lose Appeal in 3,000+ Federal Lawsuits
The 9th US Circuit Court of Appeals rejected an appeal from Meta and TikTok seeking to overturn a lower-court ruling that requires them to face more than 3,000 federal lawsuits. The appeals court said the companies had challenged the ruling prematurely.
The companies contended they were shielded by Section 230 of the Communications Decency Act from lawsuits alleging that they did not sufficiently inform users about how addictive their platforms are. But the appeals court also said that Section 230 offers a defence to liability, not immunity from lawsuits, and therefore moved the appeal forward too early.
Meta Trial to Go Ahead
The court also denied Meta’s request to delay a trial set for Wednesday involving 29 state attorneys general. Meta has been accused by the states of illegally gathering and monetising children's data, creating its platforms to keep minors addicted, and deceiving consumers about their safety on the platform.
The lawsuits brought by states, municipalities, school districts and individuals allege that social media users designed platforms created to enhance their addiction in young adults and contribute to mental health issues.
The cases are before U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California. The companies also contend with hundreds of other lawsuits of a similar nature in state courts, such as some 3,300 cases involved in a consolidated proceeding within California.
In March, a Los Angeles jury found Meta and Google liable for creating harmful platforms for children and awarded $6 million to a woman alleging she became addicted to Instagram and YouTube as a kid.
Last week, for instance, a judge in New Mexico also ruled that Meta had operated a public nuisance and ordered the company to deposit $567 million into a mental health fund for teens while requiring other youth-safety initiatives.
Source: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
You Might Also Like
Xiaomi to Invest $2.8B in New Tech Initiatives
US solar installations fall in 2025 after Trump policy changes: Report
