This trial follows a recent ruling in New Mexico where Meta was ordered to pay nearly $1 billion, though the company plans to appeal that decision.
The outcome of this case carries significant financial and operational stakes, with legal experts likening it to a "Big Tobacco" moment for social media.
While Meta’s attorneys suggest potential damages could reach $1.4 trillion, lawyers for the states have estimated a more likely figure of $200 billion.
Beyond financial penalties, the litigation threatens the core business model of Facebook and Instagram; a loss could force the company to dismantle engagement-optimized algorithms and addictive design features like infinite scroll and autoplay.
Such a result would directly impact the ad-driven revenue Meta uses to fund its $145 billion capital expenditure—or funds spent on physical assets—for artificial intelligence infrastructure.
If the court finds Meta in violation of COPPA, the states are seeking a nationwide injunction that would require the company to delete the personal data of users under 13, along with any AI models trained on that information.
The plaintiffs are focusing on app design and safety misrepresentations to bypass Section 230 of the Communications Decency Act, a legal shield that typically protects tech platforms from liability for content posted by third parties.
Meta has dismissed the claims as unsubstantiated, arguing that the financial demands are disproportionate and that the challenged features are standard across the industry.