Meta has agreed to pay up to $18bn (£13.2bn) to dozens of US states to settle claims that its social media platforms harmed children.
The landmark trial - the biggest ever of its kind - saw Meta accused of knowingly and deliberately designing features that get children addicted to its platforms, such as Facebook, Instagram and WhatsApp.
According to court papers, the company has denied wrongdoing while agreeing to the settlement.
Alongside the payments, the company has agreed to make major changes to Facebook and Instagram, including daily usage limits and a restriction of nighttime usage by children who use Facebook and Instagram.
The company will also enhance measures to prevent children from accessing age-restricted content.
The settlement resolves claims brought by 29 US states and ends a federal trial that had been one of the highest-profile tests yet of allegations that social media companies harmed young users.
The settlement will be paid out over 10 years. California will get the largest sum of at least $1.5bn, but several other states will still collect hundreds of millions of dollars each over the decade.
California Attorney General Rob Bonta said the settlement would "make social media less dangerous for our kids and make a world of a difference for children and their families".
He added: "Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms – and will do it within months.
"We are talking about time limits, stopping notifications during school, a block on the app during critical overnight hours, bans on plastic surgery filters, and so much more."
Meta responds to settlement
Wednesday's settlement also resolves lawsuits by California, Illinois, New Mexico and Washington DC, over privacy claims related to the Cambridge Analytica scandal, where the consulting firm collected personal data of millions of Facebook users.
Those states will receive $459.3m to resolve those lawsuits.
Meta shares were down 0.4% in early trading.
In a blog post, the company stated: "Today, we are announcing an agreement with a bipartisan group of 52 attorneys general across US states, territories, and the District of Columbia, building on our longstanding efforts to empower parents and support teens."
"Ensuring teens have a safe and productive experience on our platforms is an absolute imperative for Meta. We want to get this right for parents and teens, and that's why we partnered with state attorneys general to set a new industry standard," Meta added.
'Tobacco moment' for social media
Meta also urged TikTok and YouTube "to join us and state attorneys general in adopting this new standard, to ensure teens use social media in a healthy and responsible way".
Social media companies, including Google's YouTube, TikTok parent ByteDance and Snap Inc are facing thousands of lawsuits brought by states, school districts and individuals alleging they intentionally designed their platforms to keep young users hooked.
It has been labelled the industry's "tobacco moment", echoing the trials tobacco firms faced in the 1990s that ultimately held them accountable for selling a product they knew was harmful.
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The companies have denied allegations their products have contributed to depression, anxiety, body-image issues and a broader youth mental health crisis, saying they take action to protect the youngest users on their platforms.
The companies have also argued Section 230 of the Communications Decency Act shields them from claims based on the content their users post.
But the lawsuits are increasing pressure on social media companies as politicians consider stricter rules aimed at protecting young users.
The settlement comes after a number of countries - including the UK - have introduced social media bans for youngsters in recent months amid concerns over the impact of intense social media use on their mental health.
(c) Sky News 2026: Meta agrees to pay up to $18bn to settle social media addiction trial
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