Mark Zuckerbergs Meta could face astronomical damages as historic teen mental health case heads to trial

Mark Zuckerberg’s Meta faces the possibility of paying “astronomical” damages as opening arguments in the landmark trial accusing the tech giant of fueling a teen mental health crisis get underway in California federal court on Tuesday.The Instagram parent claims it could face $1.4 trillion in damages – nearly the size of its entire market cap – based on how a coalition of state attorneys general argue that penalties should be calculated.The states say a more realistic figure if Meta loses the case would be a still-unprecedented $200 billion in damages.Nonetheless, New Mexico attorney general Raul Torrez, who recently won a $567 million judgement against Meta in a separate state trial that made similar claims, said Wall Street is underestimating the possibility of an major court loss for Zuckerberg in his home state of California.“You could wake up with a headline judgment that is, as I’ve said, astronomical,” Torrez told CNBC in an interview published Monday.Meta is defending against a coalition of 29 state attorneys general who claim that Meta illegally collected and used kids’ data in a case first brought in 2023.

The states further allege that Meta designed Facebook and Instagram to be addictive for teens through features such as the “like” button and recommendation algorithms, which caused a wave of anxiety, depression, self-harm and even suicide.The AGs of California, Colorado, Kentucky and New Jersey also allege that Meta misled the public about safety risks associated with its apps.“Meta designed a dangerous product for young users, knew it to be dangerous, and then lied to children, families, and the community about how dangerous it was,” California AG Gob Bonta said in a statement last week.“We are ready to hold Meta accountable for its role in fueling the mental health crisis of American children and look forward to trial.

It seems Meta very much does not.”While a jury will hear arguments and render an advisory verdict in t...