[Photo Credit: Reuters]
Meta Platforms (META.O), opens new tab said in a court filing on Monday that four states were seeking $1.4 trillion in penalties over accusations the company designed its Facebook and Instagram platforms to addict young users and misled the public about their safety.
Meta put forward the figure in its response to the attorneys general’s filings on how penalties should be calculated if the states prevailed at trial.
The number, which has not previously been disclosed and is close to Meta’s market capitalization of around $1.5 trillion, comes ahead of an August trial in Oakland, California, over the claims brought by California, Colorado, Kentucky and New Jersey against the company.
Meta said the amount was unsupported by the evidence.
A spokesperson for California Attorney General Rob Bonta said in a statement the lawsuit “alleges Meta has prioritized profits over the safety of kids and fueled the mental health crisis we see impacting a generation of American children. The California Department of Justice looks forward to holding Meta fully accountable at trial in August.”
Spokespeople for the attorneys general offices in Colorado and New Jersey declined to comment.
Representatives for the Kentucky Attorney General’s office did not respond to requests for comment after the filing.
The states’ filings are sealed, but at a court hearing in June they said they were calculating the penalties by multiplying the number of violations by fine amounts set by state law. The number of violations is based on the estimated number of teens and young users affected by Meta’s actions, the states said.
