Meta’s landmark $18 billion settlement: What It means for NY and NJ

NEW YORK - Nearly every U.S. state is set to collect a share of a historic $18 billion payout from Meta, resolving a pivotal, years-long lawsuit over the tech giant's role in the youth mental health crisis. 

The backstory:

The landmark settlement seeks to hold Meta accountable for features designed to attract young people's attention, forcing the company to add stronger child-safety measures to Facebook and Instagram.

If approved by the court, the deal will stop an avalanche of state-led litigation. The $18 billion payout, which is a fraction of Meta’s projected 2025 revenue of $201 billion, will be distributed over 10 years. States plan to use the funds to deliver critical mental health programs, after-school and summer activities, and digital literacy counselors for children.

Local payouts

By the numbers:

While California is slated to receive the largest sum of at least $1.5 billion, New York is securing more than $1.1 billion and New Jersey is set to acquire hundreds of millions of dollars. Here is exactly how much the Tri-State area will collect:

New York

• Guaranteed annual payment: $78,949,551.70
• Contingency annual payment: $34,027,406.03
• Cambridge settlement: $29,909,776.83
• Maximum total (all installments): $1,129,769,577.26

New Jersey

• Guaranteed annual payment: $52,564,567.30
• Contingency annual payment: $22,655,427.87
• Cambridge settlement: $20,260,286.38
• Maximum total (all installments): $752,199,951.77

Where is the money going?

Dig deeper:

Each state has specific plans outlined as part of the settlement detailing how they will manage and spend their millions.

New York

• All payments will be deposited as directed by the New York Attorney General.
• These funds can be used for any lawful purpose.
• Attorney General James noted the funds are intended to support mental health services, education programs, and efforts to repair and reduce the harm caused by unhealthy social media use among young people.

New Jersey

• Out of the total settlement amount, a guaranteed $545,905,959 (combining the 10-year guaranteed installments and the Cambridge payment) will be paid directly to the New Jersey Attorney General.
• These funds can be placed into consumer protection law enforcement funds.
• The state may use the money to fund future consumer protection and privacy enforcement, consumer education, litigation, or local consumer aid funds.

State officials react

What they're saying:

Officials in New York and New Jersey, who co-led the multistate litigation effort, hailed the settlement as a watershed moment for tech accountability.

New York

"Children in New York and nationwide are suffering while companies like Meta reap immense profits by intentionally addicting them to their social media platforms," said New York Attorney General Letitia James. "We cannot allow social media companies to continue fueling the growing rates of low self-esteem, isolation, and depression among our youth. With significant new resources for our communities and comprehensive restrictions on Meta’s platforms for young people, we are taking a major step towards breaking the cycle of social media addiction. This groundbreaking plan sets a standard of reforms for all social media platforms, and I will continue to work to extend these protections across the industry."

New Jersey

"As a parent, protecting your kids is always your North Star. And this agreement achieves critical protections for our children today," said New Jersey Attorney General Jennifer Davenport.

New YorkNew Jersey