The San Francisco-based 9th US Circuit Court of Appeals on Monday rejected an appeal by Meta and TikTok seeking to overturn a lower court decision requiring them to face more than 3,000 lawsuits filed in federal court.
The appeals court ruled that the companies had challenged the lower court’s decision too early, finding that Section 230 of the Communications Decency Act does not provide immunity from lawsuits but instead offers a defence against liability.
The companies had argued that Section 230, which generally protects online platforms from legal claims arising from content posted by users, also shielded them from lawsuits alleging that they failed to warn users about the addictive nature of their products.
Meta and TikTok argued they should be able to challenge the lower court’s rejection of their Section 230 defence before the litigation concluded. However, the appeals court said such an appeal could not be brought at this stage.
The court also rejected Meta’s request to delay a trial scheduled to begin on Wednesday in a case brought by 29 state attorneys general.
The states accuse Meta of illegally collecting and using children’s data, designing its platforms to keep young users hooked and misleading consumers about the safety of its services.
The ruling comes days after a New Mexico judge found that Meta had created a public nuisance in the state and ordered the company to pay $567 million towards a teen mental health fund, alongside implementing measures to improve youth safety.
Meta declined to comment on Monday’s ruling, while TikTok did not immediately respond to requests for comment.
Attorneys representing thousands of school districts and individuals suing the technology companies said the ruling would allow the states’ trial to proceed, as well as a separate trial involving school districts scheduled for February.
The lawsuits, filed by states, municipalities, school districts, parents and individuals, allege that social media companies intentionally designed their platforms to keep young users engaged, contributing to depression, anxiety, body-image problems and a wider youth mental health crisis.
The federal cases have been consolidated before US District Judge Yvonne Gonzalez Rogers in Oakland, California. Plaintiffs are seeking damages, penalties and restitution from the companies.
Meta, Google, TikTok and Snap are also facing hundreds of similar lawsuits in state courts, including about 3,300 cases consolidated in California.
The companies have already suffered setbacks in related litigation. In March, a Los Angeles jury found Meta and Google negligent for designing platforms that harmed young people and awarded $6 million to a young woman who said she became addicted to Instagram and YouTube as a child.
Meta has also faced legal action in New Mexico. Following an earlier jury decision that ordered the company to pay $375 million for misleading consumers about the safety of its platforms, a judge later found Meta had created a public nuisance and ordered an additional $567 million payment for youth mental health initiatives.
Meta and Google have denied the allegations and said they would appeal the rulings.
Boluwatife Enome
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