Meta California Trial Begins as State AGs Warn of "Astronomical" Legal Risk

Opening arguments began Tuesday in the Meta California trial, a case co-led by California Attorney General Rob Bonta that could determine how far Meta must go in redesigning Facebook and Instagram for younger users, according to CNBC. The trial, held in a federal courthouse in Oakland with a jury seated last week, comes less than two weeks after Meta lost a related case in New Mexico.

The California case is part of a coalition of 29 state attorneys general pursuing a unified lawsuit against Meta, originally filed in 2023. Lawyers representing California, Colorado, New Jersey and Kentucky allege Meta fostered addictive behavior among teens and children and violated federal and state laws, including the Children's Online Privacy Protection Act (COPPA).

New Mexico Attorney General Raúl Torrez, whose state recently secured a ruling against Meta, told CNBC the consequences of the Meta California trial could be "astronomical" for a company that generates 98% of its revenue from online advertising. He said a judgment scaled to California's population could be a "market shifting force" far larger than the New Mexico outcome.

In New Mexico, a jury ruled in March that Meta must pay $375 million for violating the state's unfair practices act, and a judge later ordered a further $567 million into an abatement fund tied to child sexual exploitation allegations. Meta has said it disagrees with the ruling and plans to appeal.

Bonta said protecting children from harm is among his most important responsibilities, adding that Meta "designed a dangerous product for young users" and misled the public about the risks. Meta said the attorneys general's claims are "unsubstantiated" and their financial demands "vastly disproportionate," arguing there is no proof residents were misled.

According to court filings cited by CNBC, the states are seeking permanent nationwide injunctive relief over COPPA violations, including deletion of data and algorithms trained on children under 13. On state consumer protection claims, they are asking the court to force Meta to remove features including infinite scroll, autoplay, ephemeral content, beauty filters and engagement-optimized algorithms.

Meta's attorneys have estimated damages across the consolidated trial could reach $1.4 trillion, while state lawyers told presiding judge Yvonne Gonzalez Rogers that $200 billion is more likely, CNBC reported.

Legal experts say the case could reshape the legal landscape for social media companies. Julia Powles of the UCLA Institute for Technology, Law and Policy told CNBC California carries outsized influence due to its legal reach. Laura Marquez-Garrett of the Social Media Victims Law Center said state attorneys general have leverage private plaintiffs typically lack to force changes to Meta's business model through the courts.

Torrez said his team did not secure all the design changes it sought in New Mexico, after the judge found some proposed remedies could conflict with Section 230 and First Amendment protections, and said he now plans to pursue legislative measures. Meta and other platforms face further litigation nationwide, including a separate federal trial involving school districts expected in Northern California next year. Meta's stock is down 11% this year, which analysts largely attribute to AI infrastructure spending rather than the litigation.

Further details on the case can be found via the California Attorney General's office.

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