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Inside Telluride’s secret screening: a meta Elizabeth Holmes doc

The Telluride Film Festival has always enjoyed keeping a secret. Tucked away in the Colorado mountains with nary a red carpet or paparazzo in sight, the low-key film festival doesn’t announce its lineup until the day before opening and surprise additions have long been a fixture of the event.

But even by Telluride standards, organizers went to unusual lengths this year to keep their biggest surprise under wraps. They had carved out a prime Sunday evening slot for a world premiere that, fingers crossed, would remain unknown until the audience was seated inside the theater. Festival director Julie Huntsinger offered only a few clues beforehand. The film involved some “very known names,” she told The Times. “Do not miss it. Your jaw will be on the ground for the entire length of the film.”

For three days, trying to crack the mystery became Telluride’s unofficial parlor game. Was it Aaron Sorkin’s “The Social Reckoning”? Denis Villeneuve’s “Dune: Part Three”? Alex Gibney’s Elon Musk documentary “Musk”? By Sunday, the mounting speculation had become fodder for jokes: Introducing his new movie “Club Kid” earlier in the day, writer-director-star Jordan Firstman announced that the evening’s TBA would be a newly restored print of Jerry Seinfeld’s 2007 animated film “Bee Movie.” “Just kidding,” he added. “I love Jerry.”

The festival kept the suspense going right up to showtime. Before entering the Werner Herzog Theatre on Sunday evening, hundreds of moviegoers were required to lock their phones in pouches to prevent spreading the word. Inside, they were warned that security guards equipped with night-vision goggles would be watching for anyone who managed to keep a phone accessible.

Taking the stage, Huntsinger made one last plea for secrecy. “What happens in Telluride stays in Telluride,” she told the crowd, before bringing out Nathan Fielder, the deadpan comic mind behind the reality-bending television shows “Nathan for You,” “The Rehearsal” and “The Curse.”

What Telluride had been guarding so carefully was “You Can See Everything,” a nearly three-hour documentary about convicted Theranos founder Elizabeth Holmes, co-directed by Fielder and documentary filmmaker Lance Oppenheim. The film, which A24 will release theatrically in October, had been made largely in secret over three years.

“For those of you who don’t know who we are and are disappointed, I apologize,” Fielder, joined onstage by Oppenheim, told the crowd to laughs. “But hopefully by the end of the film, you’ll be slightly less disappointed.”

The movie begins 34 days before Holmes is due to report to federal prison, with Fielder, Oppenheim and a small crew given extraordinary access to her life with her partner, Billy Evans, and their young children. Holmes and Evans embrace what they call “radical transparency,” opening their home to the cameras in hopes of convincing the filmmakers — and eventually the world — that the public has fundamentally misunderstood her.

But as anyone familiar with Fielder’s reenactment-heavy work can imagine, “You Can See Everything” quickly becomes something far stranger than a conventional documentary. Fielder finds himself drawn from behind the camera into the story, struggling to determine whether Holmes and Evans are being candid with him or manipulating him. From there, the movie takes a series of increasingly surreal turns, including elaborate reenactments involving a Hollywood actress (her arrival is too good to spoil) that further scramble the line between reality and performance.

During a post-screening Q&A moderated by Emma Stone, who co-starred with Fielder in the darkly comic A24 series “The Curse,” Fielder said that his own inability to get a firm grip on what he was witnessing became one of the forces driving the project.

“We’re all smart and we’re really working at the top of our intelligence,” he recalled thinking as he and the crew tried to make sense of their time with Holmes and Evans. “Why can’t we make sense of what’s happening in this house?”

The project began, appropriately enough, with a magic trick.

Oppenheim said he and Fielder were at the Magic Castle in Los Angeles several years ago when a magician asked the audience to name a celebrity. Someone called out Elizabeth Holmes. Afterward, Oppenheim told Fielder he had heard through a friend of a friend that Holmes was looking for someone to document her life.

Fielder had read John Carreyrou’s “Bad Blood,” the bestselling 2018 account of Theranos’ rise and collapse and initially saw little reason to make another documentary about Holmes.

“I thought the story was really fully told,” he told the Telluride crowd. Holmes, however, had largely disappeared from public view, and Fielder was curious about what she might have to say for herself.

Meeting her only deepened that curiosity. Sitting across from Holmes, Fielder said, he found her “sort of honest and charming,” even as his brain was warning him, “No, don’t trust.” That disconnect — between what he knew about Holmes and what he felt in her presence — became central to the movie.

A24 gave Fielder and Oppenheim unusual freedom to pursue the project without any deadline or obligation to turn what they captured into a finished film. If nothing came of it, Fielder recalled being told, “you can just throw everything away.”

Holmes founded Theranos in 2003 and became one of Silicon Valley’s most celebrated young entrepreneurs by claiming the company could perform a wide range of medical tests using only a few drops of blood. The company collapsed after investigations exposed serious problems with its technology and business practices. In 2022, Holmes was convicted on four counts related to defrauding investors and later sentenced to more than 11 years in federal prison.

As shown in “You Can See Everything,” once Holmes reports to federal prison, the filmmakers’ access to her changes dramatically, with Evans — who takes over Holmes’ Twitter feed and assumes power of attorney over her decisions — becoming their main conduit. Fielder said the relationship grew strained as Evans tried to exert greater control over the project. Neither Holmes nor Evans has seen the finished movie.

Fielder is hoping to keep the film’s biggest surprises under wraps. During the Q&A, he told the Telluride audience he hoped future viewers could experience the film without knowing where it was headed. Stone seconded the request.

“You won’t be upsetting me,” Fielder joked. “You’ll be upsetting Oscar-winning actress Emma Stone.”

Fielder said that even after three years immersed in her world, he still doesn’t know quite what to make of Holmes — or how much of what she says can be believed.

“I really am struggling to this day to understand exactly what I experienced in this,” he said. “I don’t quite know what I went through.”

As the crowd filed out of the Herzog, one reaction seemed to recur more than any other: “That was wild.”

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Reigning In Big Tech: How California lawmakers plan to regulate AI and social media

Long the epicenter of the global tech industry, California is taking more action to shield its children, communities and workers from the threats posed by the very industry that’s become central to the state’s identity and enviable economy.

State lawmakers on Monday passed new safeguards around social media and artificial intelligence — and are poised to approve restrictions on data centers — at a time when technology has become intertwined with people’s daily lives.

Efforts to rein in the power of Big Tech extend beyond concerns that TikTok, Instagram and other social media platforms are harming young children.

Unions and workers worry that AI will take their jobs, and lawmakers are trying to tackle privacy and safety issues as AI features get added into smart glasses and toys. Californians are concerned that the proliferation of data centers will increase their electricity bills and strain water supplies.

“There’s a heightened level of tech anxiety right now, and that manifests itself from social media to data centers to AI taking jobs,” said Assemblyman Josh Lowenthal (D-Long Beach). “People are coalescing and they’re demanding that policymakers make change.”

California Gov. Gavin Newsom, who has previously vetoed some bills aimed at adding restrictions on Silicon Valley businesses, will still have to weigh in on whether to sign the pieces of legislation into law.

The Democratic governor has acknowledged the challenge of adopting regulations that protect the public without going too far and potentially stifling the technology industry’s growth, which brings critical revenue to the state budget.

“I think that’s the constant tension,” Newsom said in an interview earlier this summer. “We’re constantly sort of fighting that balance.”

The governor, who has close relationships in the technology industry from his time in San Francisco, said only a couple other states have attempted to regulate artificial intelligence like California. The state, he said, leads on regulation of social media.

“We’re not rolling over, certainly,” Newsom said. “We’re leaning forward, and we’re iterating. We will push the boundaries and litigate.”

The looming restrictions on social media follow a landmark Meta Platforms legal settlement aimed at making social media safer for young people. Parents, politicians and child advocacy groups are worried that social media is contributing to depression, anxiety, eating disorders and other issues.

The actions being pushed in the California legislature are more sweeping than that settlement, however. One of the bills passed by lawmakers on Monday, Assembly Bill 1709, would bar certain online platforms from providing an “addictive feature” to users under 16 years old and add ways to verify users’ ages.

Under the bill, prohibited addictive features include autoplay and feeds that display recommended content.

The addictive nature of autoplay and other features is “harmful, full stop, and that they’re not appropriate for the developing brain,” said Lowenthal, who authored the bill.

After watching technology “run free” in California for years, legislators are now seeking to “pump the brakes a little bit,” said Samantha Vigil, a UC Davis researcher who built a registry tracking social media legislation in states across the country.

“They want to reevaluate what is working,” said Vigil. “What is healthy and beneficial, and what is progress just for the sake of having a new iteration of something?”

All 50 states have introduced or passed some type of digital media or technology-related legislation, tackling smartphone use in schools, social media and chatbots, Vigil said.

Other countries have taken more stringent steps to limit social media use among young people. Australia banned social media use for those under 16, but enforcing the law has been challenging because young people have tried to get around the restrictions.

California isn’t trying to ban social media; instead, it’s trying to limit how platforms design their features.

Parents and state attorneys general have not waited for policy makers to act. They have sued Meta, Google and other tech companies over the alleged harms their products have done to young people.

In late August, Meta, which owns Facebook and Instagram, agreed to pay up to $17 billion and make child-safety changes to resolve a multi-state lawsuit alleging the tech company designed and deployed harmful features while misleading the public about potential harms. Meta and YouTube also lost a social media addiction lawsuit earlier this year in Los Angeles.

Assembly Bill 1709 goes further. For example, Meta’s settlement gives teens the option to pick a non-algorithmic feed and turn off autoplay but, unlike in the legislation, it’s not mandatory. The bill would also apply to other platforms outside of Meta. Meta declined to comment.

Tech industry and business group opposing the bill say it is too blunt and could cut off access to social media’s benefits, according to the bill’s analysis.

“The durable path is to enforce the targeted laws California already has and to strengthen parental tools rather than an overlapping framework whose scope can be redrawn by regulation,” said Robert Boykin, TechNet’s Executive Director for California and the Southwest.

California lawmakers passed another Lowenthal bill aimed at holding social media liable for harm caused to children. Under Assembly Bill 2, social media companies could face fines of up to $1 million per child for negligent harm.

California lawmakers this year also attempted to tackle two other perils of the technological world — the rapid development and implementation of artificial intelligence and the proliferation of the massive data centers that are essential to sustaining the AI universe.

National and state union leaders have urged California legislators and Newsom to protect workers from the threats of AI to replace workers, saying it posed an existential threat to the foundation of a healthy, productive democracy.

“AI must remain a tool controlled by humans, not the other way around,” said Sen. Jerry McNerney (D-Pleasanton).

The state Legislature on Monday approved McNerney’s bill, Senate Bill 947, which would bar employers from “solely” using automated decision-making systems to discipline or fire employees. If an employer primarily relies upon this system, a human must verify the decision.

Lawmakers also approved Senate Bill 951, introduced by Sen. Eloise Gomez Reyes (D-Colton), which would require employers to provide a 60-day advance notice to workers and local and state governments before AI-related layoffs. Lawmakers also approved Assembly Bill 1609, which requires large private businesses that serve customers to provide access to human customer service representatives and to disclose to use of chatbots.

They passed another bill by Sen. Steve Padilla (D-Chula Vista) that enacts a four-year moratorium on the sale and manufacturing of AI-chatbot powered toys over concerns that the technology can harm children.

On Friday, lawmakers agreed on a compromise on proposed legislation to regulate energy use by California’s growing data center industry, measures prompted by community fears about the massive complexes. Lawmakers say the legislation would help protect consumers from growing electricity costs driven upward by the sprawling facilities and to track the centers’ immense energy and water consumption.

At a June hearing on Senate Bill 886 to regulate data centers’ energy use, Assemblymember Pilar Schiavo (D-Chatsworth) said it’s just “a handful of companies that are gonna make trillions of dollars” from AI. They should pay for related utility infrastructure upgrades, she added.

“People, I would argue, are not even begging to use AI,” she said. “They’re struggling to figure it out to keep up with the times, but don’t even really want it.”

The California legislature is expected to vote on two of the bills to regulate the controversial industry within the next day.

Whether Newsom will embrace the legislature’s efforts to corral big Tech in California — in part of in whole — remains unclear.

Newsom last year vetoed a similar AI bill from McNerney to ban automated decision-making systems to discipline employees over worries that it could restrict companies’ ability to use customer ratings. That element was dropped in this year’s legislation.

Newsom last year signed Assembly Bill 56 that required social media platforms to display mental health warning labels to users under 18 starting in January 2027. But he also vetoed Senate Bill 771 that aimed to hold social media platforms liable if they amplified content that contributed to hate crimes and other violent acts, saying that the legislation was “premature” and current civil rights laws might be adequate.

Lowenthal said he’s heard from California families who are anxious about social media and seeking “relief” from their concerns about how the platforms are affecting their children.

“This is a kitchen-table topic,” he said. “I’ve yet to find a family with school-age children in the state of California, any corner of the state, that is not going through this right now.”

Times staff writer Taryn Luna contributed to this report.

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Why Is Poland Seeking a €250 Million Fine Against Meta?

Poland has asked the European Commission to impose a €250 million ($291.3 million) fine on Meta, accusing the social media company of failing to adequately tackle fraudulent advertisements and scams on its platforms.

Polish Digital Affairs Minister Krzysztof Gawkowski said on Wednesday that Meta had failed to respond effectively despite repeated warnings from Polish authorities and cybersecurity teams.

“Despite repeated reports from the relevant Polish authorities and teams responsible for cybersecurity, Meta still does not provide an effective and adequate response to fraudulent advertisements,” Gawkowski said in a post on X.

Poland’s Cybersecurity Tests Raise Concerns

The request followed tests conducted by CERT Polska, Poland’s national cybersecurity incident response team. The team identified 122 advertisements that were classified as fraudulent.

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According to Gawkowski, Meta decided not to remove 106 of those advertisements, representing 86.8% of the cases. Only 10 advertisements were removed, while authorities received no response in six cases.

The Polish minister called on Meta to introduce more effective tools to identify and remove scams, false advertising and promotions for illegal applications.

Meta did not immediately respond to a Reuters request for comment.

The dispute adds to broader regulatory and legal pressure on Meta over the content and safety of its platforms.

The company has faced criticism over allegations that its products can harm children and that it has misled the public about their safety. In Poland, Meta has also faced criticism over fraudulent advertisements and a lawsuit filed by billionaire Rafal Brzoska over fake advertisements using his identity.

In April 2026, a Warsaw appellate court ruled that Meta was responsible for advertisements hosted on its platforms. Meta has argued that it should not be held responsible for fraudulent actions carried out by its users.

Poland’s request places the issue within the broader European debate over the responsibility of major technology platforms for illegal and deceptive content. The European Commission now faces a decision over whether the evidence provided by Polish authorities warrants further enforcement action.

Analysis

The dispute highlights a growing regulatory challenge for social media companies: whether platforms can continue treating fraudulent advertising primarily as user generated content or must take greater responsibility for what they distribute.

For Poland, the requested €250 million penalty is not only about individual scam advertisements. It is also a test of whether existing European digital regulations can compel major platforms to respond more effectively when national authorities identify systemic failures.

If the European Commission takes action, it could increase pressure on Meta to strengthen its advertising verification and content moderation systems across Europe. It could also establish a broader precedent for holding technology companies accountable when their platforms repeatedly facilitate fraudulent advertising.

With information from Reuters.

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Meta reaches $18 billion settlements in social media addiction cases

Aug. 26 (UPI) — Meta agreed to pay up to $18 billion to 48 states, the District of Columbia and three U.S. territories on Wednesday, in settlements resolving lawsuits over the mental health risks its social media platforms pose to children as well as spearate privacy claims.

Court filings state that the settlements, pending judicial approval, include payments of $16.68 billion to 51 U.S. jurisdictions, more than $1 billion to Texas and another $459 million to 46 states, Puerto Rico and Northern Mariana Islands to resolve privacy claims tied to the 2018 Cambridge Analytica data scandal.

The filings also state that Meta must implement safeguards on its platform for minors, including limits on daily use, blocking access at night, more parental tools, stricter age-assurance standards, the hiding of likes on posts and banning cosmetic-procedure filters, among other measures.

California Attorney General Rob Bonta announced that his state may receive between $1.5 billion and $2.1 billion in the settlement.

“Today, we have secured a settlement with Meta that will make social media less dangerous for our kids and make a world of difference for children and their families,” Bonta said in a statement. “Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months.”

Meta said that 70% of the funds will be distributed over a 10-year period, with the remaining 30% to be released only after Alphabet-owned YouTube and ByteDance’s TikTok implement a one-hour dayily limit, night mode and age-assurance measures as well as each pay a matching $5.3 billion.

The Mark Zuckerberg-led Meta said the structure was designed to enforce an industry-wide adoption of the measures it has agreed to and ensure teens receive the same level of protection across major social media platforms.

“Because teens move fluidly across dozens of apps, we need an industry-wide solution. We therefore call on our industry peers, TikTok and YouTube, to implement this new framework, right away,” C.J. Mahoney, chief legal officer at Meta, said in a statement.

As part of the settlement, all parties, including Meta, waive all rights to appeal the final judgment.

“The focus of this case was to protect our kids: stopping notifications and alerts at night and when they are in school, encouraging them to take breaks from social media, protecting them against harmful features,” Phil Weiser, Colorado attorney general, said in a statement.

The cases brought by U.S. states are among several across the globe investigating social media companies over the harms they pose to children. Elsewhere, countries, such as Australia, have implemented age restrictions and called for the end to addictive features that encourage compulsive use, such as endless scrolling.

Meta still faces additional lawsuits in the United States still. Several school districts and individuals have filed lawsuits against Meta and other social media platforms for contributing to mental health problems among children.

President Donald Trump looks on as Secretary of Education Linda McMahon speaks during a back-to school event in the Rose Garden of the White House on Monday. The event focused on education and the Trump administration’s education policies. Photo by Will Oliver/UPI | License Photo

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Meta agrees to settlement, platform changes in youth addiction case | Social Media News

Meta settles $16.68bn lawsuit over child addiction claims, agreeing to major changes in Facebook and Instagram features.

Meta Platforms has agreed to settle a lawsuit that accused the company of designing Facebook and Instagram in a way that addicted children, misled consumers about safety, and collected personal data of children on the platform.

On Wednesday, the social media giant agreed to pay a maximum of $16.68bn as part of a settlement to resolve claims brought in the United States case, championed by a coalition of 29 US states. The case, which started on August 18, was expected to last six weeks.

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Meta, based in Silicon Valley in California, has also agreed to make changes to Facebook and Instagram nationwide as part of the settlement. Among these are daily usage limits of two hours for those under the age of 18, which can only be removed by a parent, and nighttime blocks.

The California State Attorney General’s Office said that the Mark Zuckerberg-led company would also identify and remove children under the age of 13 from the platform.

Meta denied any wrongdoing as part of the settlement, which still needs court approval. It had faced up to $1.4 trillion in fines in the case, but the coalition had been seeking a penalty closer to $200bn.

The settlement comes after a loss in a comparable landmark case in New Mexico, where a jury ordered Meta to pay $375m in March and another $567m in August.

Meta’s stock tumbled in early trading on Wall Street, down 0.1 percent since the market opened.

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Instagram chief testifies at Meta trial, says few teens used safety feature | Courts News

Meta, parent company of Instagram and Facebook, is on trial over claims it sought to hook young users on its platforms despite mental health concerns.

The top executive at Instagram has admitted that few teenagers have used a feature meant to counter addiction before it was turned on by default, as hearings in a landmark trial against its parent company, Meta, continue in the United States.

Adam Mosseri testified on Tuesday as Meta’s trial – over accusations that it designed its platforms, including Facebook, to be addictive to young people – entered its second week.

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Mosseri, who has led Instagram since 2018, denied any suggestion by US states suing Meta that Instagram had stalled by not making the “Take a Break” feature the default setting for teenagers until September 2024, nearly three years after its launch.

“Most teens didn’t want it,” Mosseri said. “We decided to push forward with it anyway.”

Mosseri is a central witness in the lawsuit brought by 29 US states, in what experts call the biggest legal test yet of social media’s effects on young users.

Four of the states – California, Colorado, Kentucky and New Jersey – have accused Meta of designing the platforms to hook young users, driving anxiety, depression and even suicide, while misleading consumers about the platforms’ safety.

All 29 states say Meta violated US federal law by improperly collecting and employing the personal data of children under 13 while they used its platforms.

The states are seeking approximately $200bn in damages from Meta.

‘Designed to fail’

Meta has rejected accusations that it sought to addict children, saying its research showed no clear link between adolescents’ social media use and a lack of wellbeing.

Under questioning from Jason Slothouber, a lawyer for Colorado, Mosseri acknowledged that the percentage of teenagers using Take a Break was in the low single digits before Instagram made it ⁠the default.

Take a Break encourages teenage users to close the app after a certain amount of time. Mosseri had estimated in a December 2021 blog post that more than 90 percent of teenagers who turned the feature on kept it on.

That number, however, referred to the number of those who had turned on the feature.

When asked whether Meta had disclosed its low adoption, which had reached only 1 or 2 percent of accounts, Mosseri admitted the company had not, but said the safety features were later turned on by default in Teen Accounts, which launched in 2024 and have parental controls.

Former Meta employees have said that features such as Take a Break and Quiet Mode were difficult to find and not widely used, casting doubt on whether they represented a serious effort by the company to limit screen time for young users.

“In my experience, Take a Break is a feature that’s designed to fail,” Arturo Bejar, a former Meta engineering director, testified last week.

George Volichenko, a data scientist who worked on safety features at Instagram in 2022 and 2023, likewise stated on Monday that adoption rates of such features were “very low” and that company leadership had declined to approve turning on Quiet Mode by default for young teenagers.

He added that turning on such features automatically would have had a “notable negative impact” on user engagement.

The trial could last six weeks.

Jurors are expected to issue an advisory verdict. US District Judge Yvonne Gonzalez Rogers will decide whether Meta is liable and, if so, determine any civil penalties and changes to Facebook and Instagram.

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What the social media addiction lawsuit could cost Meta | Social Media News

Social media giant Meta is facing a landmark trial that could impact its future.

Opening statements began on Tuesday in a US federal court case brought by 29 state attorneys general, who have accused Facebook and Instagram’s parent company of designing platforms to encourage infinite scrolling and keep their youngest users hooked, despite allegedly knowing they could fuel addictive behaviour. The company is also accused of collecting data on minors.

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The case is expected to last as long as six weeks. If the attorneys general get their way, the Silicon Valley-based tech company might have to make structural changes to its platform and pay as much as $1.4 trillion in fines.

While Meta denies the allegations, the potential consequences of this case could be significant for the company, which is already facing low employee morale, waves of layoffs and a series of lagging investments.

Significant financial impact

The potential exposure to Meta is significant. State penalties could reach as high as $1.4 trillion, Meta has said, although that is unlikely, as the coalition of states said it is seeking $200bn in damages.

To put that in context, the amount is roughly the equivalent of Meta’s revenue last year. In 2025, the tech giant generated nearly $201bn in revenue, and it had $83.2bn in operating income.

The $200bn ask is significantly higher than any penalty the company has had to face so far. In March, a jury in a separate New Mexico lawsuit ordered Meta to pay $375m in civil penalties, and another $567m was ordered by a judge earlier this month.

At the time of the March penalty, financial services firm Morningstar said it was not overly concerned about the impact of the looming court cases on Meta’s valuation, even if governments around the world use these cases as a reason to push for structural changes to the business.

“We think that any algorithmic changes imposed on the firm via legislation are also a manageable risk, given the firm’s monetizable user base, which is overwhelmingly adult, thereby insulating the firm against such legislation,” a Morningstar analyst note said.

While no one can predict which way the coalition case will go, Meta’s problems extend to concerns about significant financial exposure in some of its investments and business units.

For instance, Reality Labs, the division responsible for Meta’s virtual and augmented reality tools and software like the metaverse, has lost $70bn since 2020.

Meta has also ramped up spending to build out AI infrastructure as growing concerns about an AI bubble loom over the sector.

Cash flow for the business fell significantly, from $12bn in the first quarter to $784m in the second quarter, although it did not go into negative territory as some analysts had expected.

“I think it’s [Meta] in an unenviable spot, because it’s facing pressure from multiple fronts,” Aleksandar Tomic, associate dean for strategy, innovation, and technology at Boston College, told Al Jazeera.

“These verdicts are going to put pressure on their advertising business. The AI development seems to have stalled, and the virtual reality thing seems to be dead on arrival, at least for now. So the only bright spot is that they might be able to get into the AI infrastructure game, but that is no guarantee.”

Meta itself is worried about the financial strain. “There can be no assurances that a favorable final outcome will be obtained in all our cases, and defending any lawsuit is costly and can impose a significant burden on management and employees,” the company said in a January Securities and Exchange Commission (SEC) filing.

Can the lawsuit impact its core product?

While financial penalties might be a strain, a legal requirement to fundamentally alter the machinery that makes Instagram and Facebook so valuable to advertisers would be much harder for Meta to absorb.

The lawsuit calls for changes to its business model, including eliminating the infinite scroll that allows users to continually look at new posts. Meta’s advertising business is dependent on impressions, or the number of times a content appears on a user’s screen. The longer someone is on the app, the more impressions they can see.

“Our financial performance has been and will continue to be significantly determined by our success in adding, retaining, and engaging active users of our products that deliver ad impressions, particularly for Facebook and Instagram,” the company said in an SEC filing.

“User growth and engagement are also impacted by a number of other factors, including competitive products and services, such as TikTok, that have reduced some users’ engagement with our products and services,” the filing added.

In 2025, Meta reported 12 percent more advertisement impressions than in 2024, while the average price per advertisement jumped by 9 percent.

The plaintiff states want the company to make other changes, including getting rid of algorithms and AI models made from data compiled from minors. The states are also asking the court to compel the company to promote the wellbeing of its users and set time restrictions for its youngest consumers.

Meta has introduced features that have reminded teens of their time use on their platforms. In January 2023, it gave teens ways to manage the kinds of advertisements they could see on Instagram and Facebook. In June 2023, it introduced a feature to notify teen users that they have spent more than 20 minutes on the platform and to set daily time limits.

“We stand by our record of creating strong protections for teens, and look forward to making our case in court,” Stephanie Otway, a Meta spokesperson, told Al Jazeera.

But the lawsuit says that is not enough, alleging that teens could easily dismiss the notification and continue scrolling.

How will this impact future lawsuits?

Meta is currently facing lawsuits from more than 100,000 different parties, according to its SEC filings, including individuals, cities, states, and school districts around the US.

“These first few cases going out are really going to set the standard,” Tre Lovell, a Los Angeles-based media law and entertainment lawyer, told Al Jazeera.

Lovell predicted that, ultimately, there will be a combined settlement.

“We’re going to get close to some type of global settlement, a global resolution. I think, ultimately, that’s where this is going to end.”

Snap, TikTok, and Google’s YouTube have also faced litigation amid allegations that their products are built to encourage compulsive use by young people, Tomic told Al Jazeera. The claims could open the floodgates to the type of litigation that challenged the tobacco industry in the late 1990s, he said.

“This is the tobacco litigation of the information age. They [the plaintiffs in the Meta lawsuit] have identified this addiction component of social networks. Now that there is a judgement against Meta, I would be shocked if we don’t see everybody else getting sued, and once they get sued, it will be pretty much the same,” Tomic said.

In 1998, 46 states settled lawsuits with major cigarette makers over health costs and forced the companies to impose restrictions on advertising, especially targeting younger audiences.

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