Meta faces $1.4 trillion lawsuit over child‑addiction claims

Four U.S. states—California, Colorado, Kentucky and New Jersey—have filed a joint civil suit demanding $1.4 trillion in damages from Meta Platforms, accusing the company of deliberately engineering Facebook and Instagram to create addictive experiences for children. The case will be heard in federal court in Oakland, California, beginning in August 2026. A prior jury verdict in New Mexico awarded $375 million in a similar claim, but the new demand far exceeds that amount.

At the same time, Meta continues to expand its infrastructure, notably the Hyperion data‑center project in Louisiana, now slated for a $50 billion investment and a capacity increase to 5 GW. The company also plans to launch its in‑house AI chip, Iris, later in 2026. Despite the legal exposure, Meta’s stock showed resilience, rising 7 % in early July.

In Germany, consumer groups have opened class‑action pathways for users affected by the 2021 Facebook data leak and by alleged illegal tracking via Meta‑Pixel and other tools. German residents can still register for these lawsuits, which could yield individual damages of €250‑€700 per claimant.