Meta’s legal team has vehemently contested a potential $1.4 trillion damages award sought by California and three other states, labeling the demand as “outlandish” and unprecedented in consumer protection enforcement history.
Challenging the Damages Calculation
In a filing this week, Meta’s attorneys argued that the substantial sum requested by state attorneys general is an artificial construct. The filing, from lead firm Covington & Burling, stated that the figure is assembled by mixing data from disparate sources and counting individuals multiple times. Meta’s defense team is urging Judge Yvonne Gonzalez Rogers to dismiss the majority of these demands.
The attorneys pointed out that the states’ legal claims, under the Unfair Practices Act (UPA) or Children’s Online Privacy Protection Act (COPPA), have never resulted in penalties approaching such a massive amount. Meta asserts it has found no case, under any cause of action, where a single defendant was ordered to pay over one trillion dollars, or anything remotely close to it.
California Attorney General Rob Bonta, along with his counterparts in Colorado, Kentucky, and New Jersey, allege that Meta and other social media platforms actively mislead consumers through deceptive data practices. These actions, they claim, constitute “unfair or unconscionable trade practices.” If the states prevail, Meta could face up to $1.4 trillion in damages, a sum that represents nearly the company’s entire net worth, which is just over $1.5 trillion.
Broader Litigation Context
This legal battle is part of a larger wave of litigation against social media companies. Across the country, 29 states are claiming that Meta, Snap, and TikTok violated COPPA through their data collection practices. These cases bear similarities to earlier trials concerning teen-focused social media use in Los Angeles and New Mexico, which Meta has appealed after losing.
Meta maintains that its algorithm-driven products are safe and that responsibility for underage use rests with parents, not corporations. The company has also criticized state politicians, including Bonta, in what it views as an increasingly partisan political arena.
A Meta spokesperson stated, “The plaintiffs’ outlandish calculations have no basis in fact or law. We’ll continue to defend ourselves against headline-seeking demands that are untethered from reality.”
A spokesperson for California’s Attorney General’s office responded to Meta’s reaction, saying, “Our 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.”
In related business news, Meta’s stock shed 2% on Wednesday, closing at $603.12. The stock has fallen nearly 9% year-to-date in 2026, amidst investor assessment of the company’s significant spending on AI infrastructure and consumer products like smart glasses.
Norman Pearlstine is the Chief Editor of News Raise and focuses on Business news. His responsibility is to oversee the editorial content including business, commodities, personal investments and the stock market.
