This independent deal, confirmed through public records obtained by Bloomberg Law, could increase to $1.335 billion if other major tech companies like TikTok and Alphabet’s YouTube agree to the same safety changes and terms Meta accepted.
Texas chose to negotiate this side deal separately from a 47-state coalition that recently reached a $17 billion mid-trial settlement with Meta over similar issues.
By opting out of the multi-state agreement, Texas secured a payout larger than any state except California.
According to the state’s attorney general’s office, the independent strategy was designed to ensure a higher financial recovery than what was offered through the broader collective agreement.
The resolution allows the Texas Attorney General’s office to shift its legal resources toward an upcoming October trial against TikTok over allegations of deceptive marketing regarding minor safety.
Notably, because this settlement was handled by in-house state lawyers rather than outside law firms, the entirety of the proceeds will go to the state.
The final valuation of the deal remains contingent on whether Meta’s competitors adopt the specific safety standards outlined in the broader multistate settlement.