Snap Inc. NYSE:SNAP, the social media company behind Snapchat, has reached a tentative agreement to settle the second case scheduled for trial over allegations that major social media platforms are addictive to minors. The proposed settlement, whose terms were not disclosed Monday, would leave Meta Platforms NASDAQ:META, a social media and technology company, as the only remaining defendant expected to face a jury when the trial begins next week in Los Angeles. A Snap spokesperson confirmed that an agreement had been reached but did not provide further details.
Google's YouTube, a video-sharing platform, and TikTok, a short-form video platform, had previously reached agreements with the plaintiff, identified as R.K.C. The legal proceedings form part of more than 3,000 individual complaints filed against the four platforms by users or their families, alleging that their products are addictive and have caused harm. The cases come as policymakers increase scrutiny of children's access to social media, with Australia introducing a ban in 2025 preventing users under 16 from accessing social media and at least a dozen other countries considering similar measures.
The first case went to trial in California state court in February, where a jury found Meta NASDAQ:META and Google (GOOG) liable in connection with a 20-year-old woman's mental health struggles and awarded her $6 million in total damages. Investors may view Snap's tentative settlement as potentially reducing uncertainty surrounding this particular trial, while Meta's position as the remaining defendant could keep attention focused on the legal risks facing major social media platforms. The wider group of complaints and growing policy pressure may also continue to shape investor sentiment toward the sector, although the effectiveness of age-based social media restrictions remains unclear.