A U.S. federal appeals court has allowed more than 3,000 lawsuits against some of the world’s largest social media companies to move forward, delivering a significant legal setback to the technology industry. The cases accuse Meta, Google, TikTok and Snap of deliberately designing their platforms to encourage compulsive use among children and teenagers, allegedly contributing to depression, anxiety, body-image problems and other mental-health harms.
The San Francisco-based 9th U.S. Circuit Court of Appeals rejected an attempt by Meta and TikTok to overturn earlier rulings that largely allowed the federal litigation to proceed. Importantly, the appeals court did not decide whether the companies are ultimately liable. Instead, it concluded that their appeal was premature, meaning the lawsuits can continue through the federal court system before the companies seek appellate review of certain defenses.
At the center of the dispute is Section 230 of the Communications Decency Act of 1996, a law that generally protects online platforms from liability for content created and posted by their users. Meta and TikTok argued that Section 230 should also protect them from claims alleging they failed to adequately warn consumers about potentially addictive aspects of their services. The appeals court, however, determined that Section 230 provides a potential defense against liability rather than immunity from having to face the lawsuits themselves.
That distinction could prove extremely important because many of the cases focus not primarily on what users post but on how the platforms themselves are designed. Plaintiffs contend that features intended to maximize engagement—including recommendation systems, notifications and other mechanisms that encourage repeated use—were deliberately engineered to keep young people online for extended periods. States, municipalities, school districts, parents and individuals are seeking damages, penalties and restitution from the companies.
The federal litigation has been consolidated before U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California. In addition to the more than 3,000 federal lawsuits, the companies face hundreds of similar state-court cases, including roughly 3,300 claims consolidated in California state court. The enormous number of cases means the dispute could become one of the most consequential product-liability battles the technology industry has faced.
The appeals court also rejected Meta’s effort to delay a separate trial brought by 29 state attorneys general. That case accuses Meta of illegally collecting and using children’s data, intentionally designing Facebook and Instagram to keep younger users engaged and misleading consumers about the platforms’ safety. The trial is scheduled to begin August 12.
The decision arrives amid mounting legal pressure on social media companies. In March, a Los Angeles jury found Meta and Google negligent in a case involving a young woman who said she became addicted to Instagram and YouTube as a child, awarding her $6 million. Both companies said they would appeal.
Meta has also suffered a major setback in New Mexico. A state judge recently ordered the company to pay $567 million into a teen mental-health fund and implement additional protections for younger users after finding that its platforms created a public nuisance. That followed an earlier $375 million jury award in the same litigation. Meta plans to appeal the rulings.
The broader political environment is also shifting. A recent report shows 61% of Americans favor stronger government oversight of social media companies, while 66% support laws requiring age-verification measures designed to protect children under 16.
The appeals court decision does not establish that social media companies caused the alleged harms. But it ensures that thousands of plaintiffs will have an opportunity to continue pursuing their claims. The outcome could ultimately help define how far traditional technology protections extend when lawsuits target not third-party content, but the design and operation of social media platforms themselves.
