When likes become lawsuits — The insurance impact of social media addiction

Nearly two years ago, I wrote about the wave of lawsuits targeting social media companies, particularly those brought by parents and school districts.

Among the most significant is the Multi-District Litigation (MDL) No. 3047, filed in October 2023 in the Northern District of California by the attorneys general of 41 states against Meta.

The suit alleged that Meta engaged in a “scheme to exploit young users for profit” by misleading them about safety features and the prevalence of harmful content, harvesting their data, and violating federal laws on children’s privacy resulting in emotional and physical harms.1

Today, those lawsuits have multiplied.

Thousands of families across the [United States] are pursuing social media addiction lawsuits in state and federal courts nationwide.

They claim that platforms such as Facebook, Instagram, YouTube and Snapchat intentionally design algorithms to maximise user engagement, even though there is mounting evidence that this engagement results in mental health damage for young adults and adolescents.

The first case is expected to reach a California jury in November 2025.

This closely watched trial will serve as an indicator of how juries may respond to certain evidence and testimony that will likely be repeated in subsequent litigation.2

As of August 1, 2025, there were 1,922 active lawsuits pending in the social media addiction MDL.3

A federal judge recently finalised 11 bellwether cases (six school district suits and five personal injury suits) to serve as test cases.

The first trials, involving school district plaintiffs, are scheduled to begin in late 2025 or early 2026. These test trials are expected to establish facts and predict outcomes for other cases in the group.4

Coverage Disputes

Meta tendered the social media addiction claims to its insurers, seeking coverage and defence under its General Liability policies.

The insurers have resisted providing coverage for certain claims, arguing that they owe no duty to defend against claims arising from Meta’s alleged intentional acts, specifically, the design of addictive platform features.5

In November 2024, one of Meta’s insurers, Hartford Casualty Insurance Company, initiated a declaratory judgment action in Delaware Superior Court seeking a ruling as to whether they (and other insurers) have a defence obligation.

In December 2024, Meta filed a similar action against its insurers in California, alleging breach of contract and bad faith.

Meta wanted to pause the lawsuit about insurance coverage until the larger, multi-district cases were finished.

In May 2025, a federal judge in California agreed with the insurers, dismissing Meta’s case because another similar case had been filed first. The judge also sent the lawsuit back to Delaware state court for further handling.7

What’s Next?

As of August 2025, the Meta case remains pending in Delaware. The key outcome insurers are waiting for is whether they must defend Meta in lawsuits that allege intentional but unadjudicated acts, or whether such claims fall squarely outside the scope of General Liability coverage.

We will keep you up to date on new developments.

This article first appeared on the Gen Re website and was reproduced with permission.

Notes

1. “Social Media – An Addiction Now Being Treated in the Courtroom”, Gen Re, Nov. 27, 2023, https://www.genre.com/knowledge/publications/2023/november/social-media-an-addiction-now-being-treated-in-the-courtroom-en

2. Irvin Jackson, “Social Media Addiction Lawsuit Set for Trial in California State Court in November 2025”, AboutLawsuits, July 17, 2025, https://www.aboutlawsuits.com/social-media-addiction-lawsuit-california-state-court-november/

3. “MDL Filings Climb to 1,867 [sic] in Social Media Addiction Litigation”, Lawsuit Information Center, Aug. 6, 2025, https://www.lawsuit-information-center.com/social-media-addiction-lawsuits.html

4. Sara G. Stephens, “Cases to Be Tried in Landmark Mass Litigation”, Levin Papantonio LP News, July 2, 2025, https://levinlaw.com/newsroom/social-media-addiction-bellwether-lawsuits/

5. Elizabeth Price, “Meta’s Insurers Say ‘No Coverage’ for Social Media Addiction Lawsuits”, Live Insurance News, July 28, 2025, https://www.liveinsurancenews.com/social-media-addiction-lawsuits/8564679/

6. Instagram, LLC; and Meta Platforms, Inc. v. Hartford Casualty Insurance Company et al., Civil Case No.: 4:24‑9500 (N.D. Cal 2024), https://www.courthousenews.com/wp-content/uploads/2025/05/meta-vs-hartford-et-al-complaint.pdf

7. In Re: Social Media Adolescent Addiction/Personal Injury Products Liability Litigation, Case No.: 4:22‑03047 (N.D. Cal 2025), https://www.courthousenews.com/wp-content/uploads/2025/05/in-re-social-media-adolescent-addiction-order-motion-dismiss-insurance-companies.pdf

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