Meta is confronting potential penalties totaling up to $1.4 trillion from four U.S. states — California, Colorado, Kentucky, and New Jersey — that allege the company designed Facebook and Instagram to be addictive and misled the public about app safety. This unprecedented figure, revealed in a court filing, approaches Meta's current market capitalization of roughly $1.5 trillion.

The states reportedly calculated this massive sum by multiplying the number of young users impacted by state-mandated fines. Meta's legal team argued that such a sanction is without historical precedent in consumer protection cases. The company is also facing separate lawsuits from 29 other states, primarily alleging violations of the Children's Online Privacy Protection Act (COPPA) through improper data collection from minors without parental consent.

A trial addressing the four state lawsuits and the COPPA claims is scheduled for August, presided over by U.S. district judge Yvonne Gonzalez Rogers. Another 14 states have filed claims based on local laws, with a trial set for February 2027. Meta has previously disputed the concept of social media addiction, though juries have found merit in similar state claims, including a $375 million award to New Mexico.