Meta Platforms is in discussions with US state attorneys general to potentially settle a lawsuit mid-trial, which alleges the company deliberately engineered Facebook and Instagram to be addictive for teenagers. Sources familiar with the matter indicate that negotiations have taken place regarding a possible resolution before the case concludes.

The trial presents significant financial and operational exposure for Meta, as a coalition of 29 states is pursuing penalties and demanding mandatory changes to how the company runs its platforms. These states are seeking to impose fines and enforce reforms to the platform's design and features to mitigate harm to young users.

According to Meta's own internal calculations, an adverse ruling could result in penalties as high as $1.4 trillion, a figure that underscores the immense stakes involved. In contrast, a negotiated settlement would likely be substantially lower, potentially offering the company a more predictable and less costly path forward while still addressing the states' core concerns.