Meta faces a new wave of social media addiction lawsuits
The U.S. Ninth Circuit Court of Appeals allowed thousands of social media addiction lawsuits against Meta to continue. Previously, a California jury ruled that Meta and YouTube must each pay $3 million for deliberately designing addictive systems. Meta defended itself by arguing that addiction is not a recognized mental illness, but the court did not accept this. Meta also faces federal court trials and invokes Section 230 immunity. Total potential compensation could exceed $1.4 trillion, close to its market value.
Meta may face a new round of lawsuits related to social media addiction and mental harm caused by its apps. The Ninth Circuit Court of Appeals in San Francisco ruled that these lawsuits can proceed, following previous court rulings involving social media addiction.
In March, a California jury found that the use of Meta and YouTube could have a significant impact on health due to their intentionally designed addictive systems. The court ruled that both companies ignored risks to maximize commercial opportunities.
In that case, Meta and YouTube were ordered to each pay $3 million in damages to a single plaintiff. The ruling also established a new precedent that social media addiction can cause significant harm and stress. This exposes Meta to a broad range of new lawsuits from other plaintiffs claiming their apps caused distress and suffering.
Meta attempted to dismiss the California ruling, arguing that social media addiction is not a psychological condition validated by the Diagnostic and Statistical Manual of Mental Disorders, which serves as a foundational guide for such legal decisions.
However, today's ruling means other cases can move forward because Meta failed to provide compelling arguments to halt the proceedings.
Meanwhile, according to the Los Angeles Times, Meta is preparing for trial in federal court on the merits of these claims.
In addition to arguing that social media addiction is not a recognized psychological condition, Meta also contends that there is equal evidence showing its products are beneficial for older teenagers.
Meta is also seeking to use the protections of Section 230 of the U.S. Code to avoid liability.
Meta's executives are hoping these cases will be resolved favorably. Otherwise, according to Reuters, the total potential compensation could exceed $1.4 trillion.
Meta's current market value is approximately $1.5 trillion, which provides some room for potential liabilities.
If legal precedent is established and social media addiction is recognized as real, Meta will be in serious trouble and could face an existential business crisis.
Meanwhile, if things go unfavorably, Meta may rely on protection from the U.S. government, which could lead to delays in the cases for some time.