Meta could face a raft of new lawsuits related to social media addiction and the mental harms caused by its apps. A 9th Circuit Court in San Francisco ruled that these lawsuits can proceed following an earlier court ruling related to social media addiction.
In March, a jury in California found that using both Meta and YouTube can have significant health impacts, due to intentionally designed, addictive systems. The court ruled that both companies ignored risks in order to maximize business opportunities.
Meta and YouTube were ordered to pay $3 million each in damages to a single plaintiff in the case. The finding also established a new precedent, that social media addiction can cause significant harm and stress. This has now opened Meta up to a broad range of new lawsuits from others who allege that the apps have caused them pain and suffering.
Meta has sought to dismiss the California ruling by arguing that social media addiction is not a psychological condition verified by the Diagnostic and Statistical Manual of Mental Disorders, which is the foundational guidebook for legal rulings of this type.
However, today’s ruling means other cases can move forward, since Meta has been unable to provide convincing arguments that would halt proceedings.
At the same time, Meta is preparing for a Federal Court trial over the merits of these claims, as reported by the LA Times.
In addition to its counter-defense that social media addiction is not a recognized psychological condition, Meta also argues that there’s equal evidence showing that its products are good for older adolescents.
Meta is also seeking to use Section 230 protections to shield it from liability.
Meta’s executives are crossing their fingers and hoping these cases are resolved in their favor. Otherwise, the costs of potential payouts could exceed $1.4 trillion overall, according to reporting from Reuters.
Meta’s current market cap is around $1.5 trillion, giving some scope to the potential liabilities.
If legal precedent is established and social media addiction is determined to be real, Meta is in very hot water, and could face an existential business crisis.
At the same time, Meta may lean on the U.S. government for protection if things don’t go its way, which could see the cases drag on for some time.
