A federal judge has allowed a $1.4 trillion lawsuit brought by states to proceed against Meta, rejecting the company's attempt to dismiss claims that its platforms harm children. Judge Gonzalez Rogers imposed some limits on the plaintiffs' claims, finding that "Section 230 insulates the design and deployment of most features alleged to be unfair or unconscionable." But she declined to dismiss theories of liability predicated on a failure-to-warn of known risks of addiction.

The denial of Meta's motion to dismiss was an interlocutory order, which generally cannot be appealed immediately. Meta argued that rulings denying Section 230 immunity are collateral orders, but the 9th Circuit disagreed. The panel held that "Section 230 provides a defense to liability, not immunity from suit," meaning Meta must face trial before appealing.

In a separate case brought by New Mexico's attorney general, a state-court judge last week ordered Meta to pay $567 million for youth mental health care and related services to alleviate the "public nuisance" created by its platforms. Meta was also ordered by a jury to pay $375 million in civil penalties during an earlier phase of the New Mexico case.